SYRACUSE, N.Y. (NCC News) — Heating bills are climbing as temperatures fall. National Grid announced its customers in central New York will face a 10% increase in natural gas costs this winter.
“No matter how much the price of heat goes up, because it is a necessity, people are still going to buy it.”
Aadya Bakshi, Syracuse University economics student
This rise stems from higher state-approved delivery rates as well as natural gas prices. The rate changes, certified by the New York State Public Service Commission in August, are part of a three-year plan that will raise costs again in 2026 and 2027.
National Grid serves over 1.7 million electricity customers and about 600,000 natural gas customers across upstate New York, who are now expected to pay nearly $66 more this winter than they have in previous years.
Aadya Bakshi, an economics student at Syracuse University, explained the economic principle behind why people will continue to pay higher prices.
“Heat is a basic necessity, so that means the demand for it is inelastic,” Bakshi said. “No matter how much the price of heat goes up, because it is a necessity, people are still going to buy it.”
Kim Infanti, a resident of Manlius, has seen the headlines about the increased amount she will have to pay to heat her home and agrees with Bakshi’s reasoning.
“(The price change) is kind of like everything else, everything is going up,” she said. However, Infanti is not prepared to sacrifice heating her home. “…Having a little human in our home, I just want to make sure he is warm overnight, and I like to be warm, too.”
Alexander Rothenberg, an associate professor of economics at Syracuse University, warns that rising energy costs will disproportionately affect low-income households.
“It’s really hard…(they) have to prioritize food or keeping your house warm, and it’s going to make it difficult for families to make ends meet,” he said.
The 10% increase in cost is causing customers to reassess and plan out their monthly spending more carefully. Corinne O’Brien, alongside her roommates, who are all seniors at Syracuse University, expressed that they have already felt a dent in their budget from this extra cost.
“It’s definitely something that, although it isn’t a huge expense, is significant for college students,” she said.
National Grid addressed these challenges for its low-income and more vulnerable customers.
“We recognize that energy affordability is a significant concern for many households,” Alberto Bianchetti, National Grid’s regional director of external affairs, told Syracuse.com. The company is encouraging customers concerned about the cost increase to apply for assistance programs, such as HEAP or the Energy Affordability Program.
AUDIO TRANSCRIPT: Winter heating costs
Payton Mitchell: As temperatures drop, prices are rising. National Grid announced last week that natural gas heating bills in Onondaga County are expected to rise about 10% this winter. Skylar Smith reports on how this increase will affect local households.
Skylar Smith: National Grid serves more than 2 million customers across upstate New York, who are now expected to pay about $66 more than last year on their heating bills — a result of state-approved delivery rate increases and slightly higher natural gas prices. Kim Infanti, a resident of Manlius, says that these higher costs do not surprise her, given today’s inflationary environment.
Kim Infanti, resident of Manlius: “It’s kind of like everything else, everything is going up… I can’t say that it’ll affect me too much.”
Skylar Smith: Though Alexander Rothenberg, an associate professor of economics at Syracuse University, warns that this increase will have a bigger impact on lower-income consumers.
Alexander Rothenberg, associate professor of economics at Syracuse University: “It’s really hard, right, so, you have to prioritize food or keeping your house warm, and it’s going to make it difficult for families to make ends meet, yeah, absolutely.”
Skylar Smith: Syracuse University senior Corinne O’Brien adds that she and her roommates are already paying closer attention to their monthly spending because of this anticipated increase.
Corinne O’Brien, senior at Syracuse University: “It’s definitely something that, although it isn’t a huge expense, is significant for college students.”
Skylar Smith: Skylar Smith, NCC News.
Payton Mitchell: Thanks, Skylar. Customers concerned about their bills are encouraged to contact National Grid.