To stay warm this winter, most Americans will have to pay more than they have in the last few years because of relatively colder weather and higher fuel prices, according to government forecasts.
But Chattanoogans may feel less of a chill in their pocketbooks as energy prices remain below the U.S. average and, for many, cheaper than last year.
In its annual winter outlook forecast, the U.S. Energy Information Administration predicts the typical American household will spend between 8 percent to 17 percent more in heating bills over the next five months than they did a year ago. Depending upon the fuel source used for heating, EIA said the national average increase in winter heating bills should cost the typical household anywhere from $69 to $221 more this year than they did last year.
The National Oceanic and Atmospheric Administration forecasts the upcoming winter will be 13 percent colder than last year's mild winter across the country - and 27 percent colder, on average, in the South.
EIA forecasts a 2 percent increase in natural gas and electricity prices and a 6 percent increase in heating oil and propane prices this winter.
But in the Tennessee Valley, where most homes heat with electricity, electric prices are down 1.5 percent from a year ago and are at their lowest level in more than five years. Average residential bills in Chattanooga during November this year will be $2.11 less than a year ago for the same amount of monthly power, according to EPB.
"What people pay will obviously be influenced heavily by the weather and how people use energy in their home, but our rates remain lower than in the previous four years and are well below the national average," said Scott Brooks, a spokesman for the Tennessee Valley Authority, which supplies power in seven Southeastern states.
TVA adjusts its rates to reflect its changing fuel expenses each month. In November, the fuel cost adjustment will be down nearly 14 percent from a year ago. TVA said the lower fuel costs reflect the addition of more nuclear and hydroelectric power generation, which replaced more expensive fuel sources such as coal and natural gas.
Chattanooga's chief business recruiter, Charles Wood of the Chattanooga Area Chamber of Commerce, said cheaper electricity prices from TVA helped recruit energy-dependent manufacturers like Wacker Chemie, which located its $2.5 billion polysilicon production plant in Charleston, Tenn.
"We're very fortunate to have a pretty low cost of energy, especially for large industrial users, and that is a key advantage for our region," Wood said.
Motorists in Southeast Tennessee also are enjoying cheaper gas prices. Last Monday, the lowest price gas in the country was sold at an Exxon station in Lookout Valley at $1.73 per gallon. Although that bargain price was short-lived, the cheapest gas in Tennessee - and one of the lowest anywhere in the country - was still available during most of last week at gas stations in Cleveland or Ocoee, Tenn, where gas was priced at $1.89 per gallon through most of last week, according to GasBuddy.com.
On Sunday, the average price of a gallon of regular gas in Chattanooga was $2.11 per gallon, or 34 cents per gallon below the U.S. average price of $2.45 per gallon, according to GasBuddy.com.
Contact staff writer Dave Flessner at dflessner@timesfreepress.com or 423-757-6340.