Heating Costs Will Jump 29-44% This Winter, O&R Warns

PEARL RIVER, NY — Because market prices for electricity and natural gas are expected to be substantially higher this winter, officials at Orange & Rockland Utilities urged customers to take actions now that can help them manage costs.

• The monthly cost for natural gas could jump 44 percent over last year.
• The monthly cost for electricity could rise nearly 30 percent.

O&R currently projects that its average residential natural-gas-heating customer using an average of 158 ccfs per month will pay $337 a month from November 2022 to March 2023, 44 percent more than the average bill of $234 a year earlier, officials said.

A typical O&R residential customer using 600 kWh a month this winter will pay about $174, a 28.8 percent increase over last winter’s $135 based on current projections.

Higher costs will be a problem across the Northeast. The increases are mainly due to increases in the market cost of natural gas, which is volatile and also influences electric market costs.

Orange & Rockland buys natural gas and electricity on the wholesale markets. The company does not set supply costs and does not make a profit on the supply. Higher natural gas prices also affect the cost of electricity, since power generation plants in the region run mainly on natural gas.

Orange & Rockland also notes that energy costs are changing quickly with significant shifts on a daily basis. Natural gas supplies are expected to remain tight this winter, and any disruptions from interstate gas transmission providers could further constrain supplies.

O&R remains vigilant in its monitoring of operational conditions, officials said. The company will continue to refine its winter pricing forecast.

The company uses a variety of strategies to stabilize pricing for customers. The best strategy for Orange & Rockland’s 131,460 gas customers is to carefully manage their usage.

Save money on energy by using these six tips:

• Set your thermostat at the lowest temperature at which you are comfortable and safe. Whether you are using a gas furnace or an electric heat pump, each degree lower decreases heating costs.
• Make sure heating vents are not blocked by furniture, carpeting or anything else that could obstruct the flow of heat.
• Have a qualified contractor clean and inspect your heating system.
• Insulate hot-water pipes and warm-air ducts that pass through unheated areas. Clean or replace filters for your hot-air furnace and heat-pump.
• Swap out window shades seasonally. Light-colored window coverings reflect the sun's energy, while darker ones absorb it and release heat.
• Replace conventional light bulbs with LED bulbs, which are up to 10 times more efficient and are widely available and affordable.

The company offers online Tips for Lowering Your Energy Bill and a number of Payment Plans and Assistance, including Budget Billing, which smooths customer’s costs out throughout the year. The company encourages customers to check out its energy efficiency incentives for upgrades customers make to their homes: Rebates, Incentives, and Tax Credits.

The company also offers help for customers who are struggling with their bills. Orange & Rockland can put customers on Payment Plans and Assistance, so that they can pay off balances over time, rather than all at once.

Under the New York State Electric and Gas Bill Relief Program, which the company helped design and propose, residential customers who receive qualifying government assistance will receive a bill credit on their past-due balance for service through May 1, 2022. If you are enrolled in Orange & Rockland’s Energy Affordability program or received Emergency Rental Assistance Program or Home Energy Assistance Program-Regular Arrears Supplement benefits, your bill credit will be processed automatically, and you do not need to take any action. In addition, your service will not be suspended for non-payment while your bill credit is being processed.

Customers who receive benefits from certain government programs may also qualify for discounts on their monthly energy bills. Orange & Rockland offers information on these and other Payment Plans and Assistance it has available for customers.