Heating bills are up 40 percent compared to last year

Heating bills are up 40 percent for homeowners compared to last year.

Officials say demand for energy is increasing as supply continues to drag behind.

Wholesale prices for propane are up nearly a dollar per gallon from last year.

The Michigan Public Service Commission says despite the increase in cost, they expect residential demand for propane could rise nearly 10 percent.

Inventory is lower than last year, and the commission thinks residential use could increase if more people work remotely.

“Home is where we're working, in some cases where some people are still learning, and so when you get some of these increases, in the energy prices for home heating, just basic necessities, that becomes a real concern,” said Dan Scripps, Michigan Public Service Commission Chair.

The Michigan Public Service Commission says energy demand has increased since last year.

8 percent of Michigan homes heat with propane and more than 75 percent use natural gas.

After demand dropped last year, energy companies slowed down or even stopped production.

Now getting back to pre-pandemic levels is going to take time which means this winter, customers will be paying more.

Scripps says energy assistance programs are available for people who are really struggling to pay heat bills,

But even small changes can make a big difference in energy use.

“Adding that extra insulation, making sure they are winterizing their windows. If you can and you are comfortable, turning the thermostat down even one degree can result in some savings.”

Wendy Lussier from NIPSCO agrees. She advises customers to use a programmable thermostat.

When you save energy, the dollars do add up.

“Program it so save energy when you are away from home, keep the house cooler at those times when you are not there.”

Lussier says it's also important for homeowners to make sure their furnace is working effectively, her recommendation-

“That a technician come in annually and do a tune-up on the furnace and make sure its operating as efficiently as possible, and then throughout the year it really is important to keep those filters clean.”

Both Scripps and Lussier say to avoid the shock of a high bill in the winter, plan ahead.

Work with your provider to develop a budget, payment plan, or see if you qualify for reduced rates.