Washington (Platts)--9Oct2007

Americans are likely to spend nearly 10% more to heat their homes this
winter than they did last year, the US Energy Information Administration said
Tuesday, forecasting winter fuel expenditures to average $977 for each
household.

     The 7.8 million US households burning heating oil to stay warm in the
winter should see the biggest expenditure increases this winter, and are
projected to spend $1,785, or 21.8% more than the $1,466 they spent to heat
their homes from October 1 to March 31 last year, EIA said in its Winter Fuels
Outlook report. 

     The 62.4 million households -- about 58% of the total -- depending on
natural gas for winter heating should see their bills jump 9.5% from last
winter, to an average $891, while the 32.6 million households that heat with
electricity should anticipate a 3.9% increase in their winter bills, to an
average $855 over the six-month period, said EIA, the statistical arm of the
US Energy Department. The 5 million homes that depend on propane should see
their winter fuel bills increase 16.3% to $1,570 from last winter, the agency
added.

     EIA's projections are based in part on the US National Oceanic
Atmospheric Administration's most recent weather forecast, which forecasts
this winter's weather in the US to 4% colder than last winter. The colder
weather is expected to increase consumption compared with last year, EIA
noted.

     For heating oil, consumption should be up 5% to 619.9 gal/household for
the heating season, while the average retail price should climb 16% to
$2.88/gal, compared with $2.48/gal last winter, EIA said. 

     Natural gas consumption should be up 3% to an average 67.8 Mcf/household
for the six-month winter period, while residential prices should increase 6.3%
to $13.14/Mcf, compared with last winter's $12.36/Mcf, EIA said.

     Electricity consumption, meanwhile, is forecast to be up 1.5% from last
winter at 8,283 kWh/household, while the price is projected to increase 2.3%
to 10.3 cents/kWh. Propane consumption should grow 3.1% to 689.6 gal/household
for the winter, with the residential price increasing 12.9% to an average
$2.28/gal, EIA said.

		--Cathy Landry, cathy_landry@platts.com