BOULDER Blog

‘A Winter of Giant Gas Bills is Coming’

Hey folks, we’ve already talked about utility bills in winter months versus summer months and addressed that, typically, the utility bill increases throughout the colder, winter months.

Unfortunately I have bad news today.  The Wall Street Journal reported on 10/14/21 that a ‘winter of giant gas bills is coming’ (https://www.wsj.com/articles/a-winter-of-giant-gas-bills-is-coming-are-you-ready-11634203801?mod=hp_lead_pos4).

The article states that, ‘according to the Energy Information Association, nearly half of US households that warm their homes with mainly natural gas can expect to spend an average of 30% more on their bills compared with last year.’  Even worse, if the winter is 10% colder than an average winter, utility bills are expected to be 50% higher. From a dollar perspective, the EIA forecasts that the average natural-gas home-heating bill may reach $746 from October 1 to March 31, compared with ~$573 from 2020.  The culprits are natural gas prices, which have reached a seven-year high, and the likelihood of a more frigid winter than what most of the country saw last year.

Sure, these are national stats, but did you know that over 50% of Colorado homes rely on heating by way of natural gas or propane (https://coloradosun.com/2021/05/11/building-electrification-gas-homes/)?  High utility bills make for a sad Obie.

Drawing on the WSJ’s article, Vivek Shandas, a professor at Oregon’s Portland State University who studies the effect on climate change on cities and households describes ways to mitigate this cost increase.  In summarizing his thoughts, Vivek states ‘tightening the envelop of the house is generally how it’s considered.’

Who is ready for some good news?  Obie can help!  While we can’t take your utility bills to zero, unfortunately, but upgrading, improving, or tightening your home’s envelope we can help with!  All of this will lead to cost savings for your home moving forward.  Given the temperatures are dropping and the first snowfall either already occurred for your region or is about to, there’s no better time than now to have an insulation evaluation.

Proper insulation is estimated to help save 20% on your utility bills for homes in climate zones six and seven (Boulder, Denver – all of Colorado).  For more on this, check out this great article from ‘This Old House’: https://www.thisoldhouse.com/insulation/21097080/home-insulation-helps-reduce-energy-bills.  WIth our team's expertise, we can help you decide what your home needs, where it's vulnerable, and the best possible solution for you - be that spray foam, fiberglass or cellulose blown-in, your crawlspace, rim joists, etc. 

Drawing on some simple math, upgrading your insulation now may mitigate some or all of the utility bill increase as a result of higher natural gas prices.  The best offense is a good defense, and that’s where Obie can help!