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Despite claims that home electrification saves money, natural gas is cheaper, DOE data shows
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Despite claims that home electrification saves money, natural gas is cheaper, DOE data shows

THE latest figures from the Ministry of Energy throw water on the Biden-Harris administration’s campaign to electrify the American home. Despite claims that switching from natural gas to electricity would save consumers money, agency data shows that electricity costs 3.5 times more than natural gas – and it This has been the case since at least 2011.

In 2022, the administration organized a “electrification summit.” Energy Secretary Jennifer Granholm gave a speech saying electrification would reduce carbon emissions and energy costs.

The government’s electrification drive is supported by anti-fossil fuel groups, such as Rewiring America. Camila Thorndike, director of climate engagement for Kamala Harris’ presidential campaign, worked for Rewireing America for two years before joining the campaign. Thorndike recently found himself embroiled in a controversy when she attempted to clarify Harris’ position on fracking, only to make the Democratic candidate’s position even more opaque.

Another anti-fossil fuel nonprofit, the Rocky Mountain Institute, produced a report in 2018 stating that “electrification of space heating and cooling, water, and air conditioning reduces homeowner costs over the life of the appliances compared to performing the same functions with fossil fuels.”

Many wealthy individuals are working to force this on consumers. The Rocky Mountain Institute brought in $164 million in 2022. Billionaire and former mayor of New York Michael Bloomberg donated $1 billion of its own money toward an aggressive move to keep consumers from coal and natural gas.

The Sierra Club, which is partnering with Bloomberg Philanthropies for the campaign, maintained a 2022 to 2023 list of California communities whose governments were ban natural gas in new constructionstarting with Berkeley, California in July 2019. The list has not been updated since April 2023, likely because the United States Court of Appeals for the Ninth Circuit killed the Berkeley banwhich effectively called such bans into question.

Heating costs

This was good news for taxpayers. According to energy watchdog Robert Bryce, under the Energy Policy and Conservation Act of 1975, the DOE is required to publish annually the average costs of five residential energy sources, including natural gas and electricity. Bryce has reported for years that DOE data consistently shows that electricity is more expensive than natural gas.

Residential consumers using electricity to heat their homes this year will pay about $46 per million, according to the latest DOE figures. British thermal units (btu), a measure of the heat content of energy sources. Natural gas users will spend $14 per million BTUs. Other fossil fuels are also less expensive – heating oil, propane and kerosene – although each costs more than twice as much as natural gas.

The natural gas industry was quick to announce the results.

“The report released today by DOE highlights the important role natural gas plays in ensuring households have access to affordable energy. Low-cost natural gas means American families can make the choices they need to save money on their utility bills,” American Gas Association » said President and CEO Karen Harbert in a statement.

The low cost of natural gas is partly due to hydraulic fracturing, also known as fracking, which is a well completion technology that allows oil and gas producers to extract fossil fuels from rock formations previously inaccessible underground. Technology has allowed the United States to more than double the amount of natural gas it produces.

THE rapid development of wind and solar power could also contribute to electricity price inflation. Although these technologies produce cheap electricity when the wind blows or the sun shines, they are intermittent. Creating a reliable flow of electricity from generators that shut down, often randomly, is very expensive.

Winter outlook

The DOE’s findings are not new, however. Bryce reports. In 2023, the average American household paid $46.19 per million BTU for electricity, compared to $13.97 per million BTU for natural gas, meaning electricity was 3.3 times higher than gas. In 2011Electricity costs were $34.14 per million BTU, compared to natural gas costs of $11.01 per million BTU.

Earlier this month, the Energy Information Administration released its “Winter Fuels Outlook”, which forecasts residential energy consumption, prices and expenses for the upcoming winter season for the four most common residential heating fuels: natural gas, electricity, propane and oil.

How much consumers will spend to heat their homes this winter depends on weather conditions, the region they live in and the energy source they use.

If winter turns out to be 10% colder than last year, natural gas residential heating in the Northeast – the most expensive region – will cost an average of $827 this year. The average American household will pay $637 to heat with natural gas in the 10% colder scenario.

For Northeast homes heated with electricity, they will pay an average of $1,456 this winter if the weather is 10% colder, or $1,344 if the weather is 10% warmer than last year. The average American household will pay $1,095 more to heat their home with electricity if the winter is 10% colder, and $1,025 if the winter is 10% warmer than last year.

Even if anti-fossil fuel groups really want people to stop using natural gas and other fossil fuels to heat their homes, that’s going to be hard to convince at a time when polls show people are much more concerned about their finances, while climate change is coming quite far behind on the list of concerns.