Most heating bills expected to rise this winter

Most Americans can expect high heating costs this winter according to a federal forecast Tuesday.

Prices for natural gas, electricity and propane should all be higher, and although heating oil customers are expected to see a slight drop from last year, this winter's prices will still be the second-highest on record.

Households using natural gas for heat -- about half -- will pay about 13 percent more than they did during last year's relatively mild winter -- about $679, according to the Energy Information Administration's annual Winter Fuels Outlook. That figure is still 4 percent below the average for the previous five winters.

Part of the increase is coming from insufficient pipeline capacity. “Increased gas use for power generation has contributed to pipeline transportation constraints in the New England regional natural gas market,” the EIA said in its report.

For the roughly 6 percent of U.S. households using heating oil -- mainly in New York and New England -- the average bill should drop two percent this winter to $2,046, though the oil forecast is most uncertain.

Heating oil refiners also produce diesel and jet fuel that are in high demand worldwide while inventories are low.

About 38 percent of homes in the U.S. use electric heat, and they could pay about two percent more this winter. But most homes using electricity for heat are in milder regions.