Energy affordability remains top of mind as households prepare for the colder months ahead. The American Gas Association’s (AGA) 2025–2026 Winter Heating Outlook offers encouraging news: despite rising energy demand and a colder forecast, U.S. households that use natural gas can expect stable and affordable costs this winter.

Natural gas supplies more than one-third of the country’s energy needs, fueling the lives of 189 million Americans. On average, households using natural gas already save $12,132 per year compared to those relying on electricity, adding up to an estimated $125 billion in savings for American families over the last decade.

In fact, both AGA and the Energy Information Administration’s (EIA) Winter Fuels Outlook forecast that heating costs for natural gas users will remain steady this season, while electric customers are likely to see higher bills as grid demand and retail electricity prices rise.

Record Supply Meets Rising Demand

AGA reports that U.S. natural gas production and demand are both at record highs heading into the winter season. Additionally, LNG exports are expected to continue climbing and are projected to grow between through 2026. U.S. producers are stepping up to the plate, with rising demand is with record production and a 16 percent increase in recoverable U.S. natural gas, helping keep energy reliable and affordable.

Source: AGA 2025-2026 Winter Heating Outlook

Notably, the natural gas rig count has climbed 18 percent even as oil activity has slowed down, while storage inventories remain well above the five-year average. Natural gas storage also provides an unmatched reliability advantage, offering 130 times more daily dispatch capacity than all electricity storage combined, giving utilities a powerful tool to keep homes warm even during peak demand.

Richard Meyer, AGA Vice President of Energy Markets, Analysis, and Standards, emphasized the strength of the industry heading into winter:

“Natural gas continues to be America’s strategic advantage for affordable, reliable energy heading into the 2025–2026 winter heating season… A colder than average winter means customers may consume more natural gas this year to heat their homes, but prices remain 10 percent lower than they were a few years ago.” (emphasis added)

Keeping Energy Costs Within Reach

Importantly, natural gas remains the most affordable heating option for U.S. consumers. AGA estimates that winter heating bills will be around eight percent  lower than three years ago, with the average household spending around $867 per year on natural gas –just 1.1 percent of annual expenses. By comparison, households spend about $2,400 for gasoline and $1,700 for electricity annually.

Source: AGA 2025-2026 Winter Heating Outlook

When adjusted for home size and climate, households that heat with natural gas save an average of $415 annually compared to similar homes using electric heat. Natural gas bills also tend to be more stable month to month, reducing financial uncertainty for consumers.

Source: AGA 2025-2026 Winter Heating Outlook

Bolstering this data is the EIA which expects natural gas to remain the most cost-effective primary heating fuel nationwide. Data shows that those relying on electricity will face higher bills due to rising retail power prices and growing grid constrains.

Natural Gas is the Reliability Answer

History has shown time and again that even on the coldest days and biggest storms, natural gas is the reliable fuel of choice. In fact, data shows that the system delivers nearly four times more energy than the electric grid can provide. That level of reliability during severe weather helps protect consumers from price volatility and service interruptions, though also highlights the need for permitting reform to strengthen U.S. energy systems further.

Source: AGA 2025-2026 Winter Heating Outlook

Bottom Line: Natural gas is America’s energy advantage. As temperatures drop this Winter, American families can depend on natural gas as the cost effective and reliable energy option.