DOE Forecasts 2025 Residential Energy Costs
Summary
The Department of Energy has issued a notice forecasting representative average unit costs for five residential energy sources for 2025. These costs, effective April 27, 2026, are required for manufacturers to comply with energy consumption labeling requirements.
What changed
The Department of Energy (DOE) has published a notice forecasting the representative average unit costs for five residential energy sources (electricity, natural gas, No. 2 heating oil, propane, and kerosene) for the year 2025. This forecast is mandated by the Energy Policy and Conservation Act and is based on data from the DOE's Energy Information Administration (EIA), specifically the Short-Term Energy Outlook and the Annual Energy Outlook.
These forecasted costs will become effective on April 27, 2026, and will remain in effect until further notice. Manufacturers are required to use these costs when calculating and displaying estimated annual operating costs on consumer products, as per Section 323 of the Act and Federal Trade Commission (FTC) labeling requirements. Compliance officers should note that these costs are used for FTC labeling and may require updates to product labeling information.
What to do next
- Review forecasted residential energy costs for 2025.
- Ensure product labeling reflects these costs effective April 27, 2026, in accordance with FTC requirements.
Source document (simplified)
Content
ACTION:
Notice.
SUMMARY:
The U.S. Department of Energy (DOE) forecasts the representative average unit costs of five residential energy sources for
the year 2025 pursuant to the Energy Policy and Conservation Act (Act). The five sources are electricity, natural gas, No.
2 heating oil, propane, and kerosene.
DATES:
The representative average unit costs of energy contained in this notice will become effective April 27, 2026 and will remain
in effect until further notice.
FOR FURTHER INFORMATION CONTACT:
Mr. Troy Watson, U.S. Department of Energy, Office of Critical Minerals and Energy Innovation, EE-5B, 1000 Independence Avenue
SW, Washington, DC 20585-0121, Telephone: (202) 449-9387, Email: ApplianceStandardsQuestions@ee.doe.gov.
Mr. Peter Cochran, U.S. Department of Energy, Office of General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC
20585-0103, Telephone: (202) 586-4798, Email: peter.cochran@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
DOE is required to prescribe test procedures for measuring the estimated annual operating costs or other measures of energy
consumption for certain consumer products, as specified in Section 323 of the Energy Policy and Conservation Act (the Act)
(42 U.S.C. 6293(b)(3)). These test procedures are found in Title 10 of the Code of Federal Regulations (CFR) part 430, subpart
B.
The estimated annual operating costs of a covered product must be calculated from measurements of energy use in a representative
average use cycle or period of use and from representative average unit costs of the energy needed to operate the product
during the cycle (Section 323(b)(3) of the Act). (42 U.S.C. 6293(b)(3) and (b)(4)) DOE must provide information to manufacturers
regarding the representative average unit costs of energy. (42 U.S.C. 6293(b)(4)) This cost information should be used by
manufacturers to meet their obligations under Section 323(c) of the Act. These costs are also used to comply with Federal
Trade Commission (FTC) requirements for labeling. Manufacturers are required to use the revised DOE representative average
unit costs when the FTC publishes new ranges of comparability for specific covered products (16 CFR part 305). Interested
parties can also find information covering the FTC labeling requirements at https://www.ftc.gov/appliances.
DOE last published representative average unit costs of residential energy in a
Federal Register
notice entitled, “Energy Conservation Program for Consumer Products: Representative Average Unit Costs of Energy”, dated October
17, 2024, 89 FR 83672. DOE's Energy Information Administration (EIA) developed the 2025 representative average unit after-tax
residential costs found in this notice. EIA based these costs for electricity, natural gas, and No. 2 heating oil on its September
2025, EIA Short-Term Energy Outlook (EIA releases the Outlook monthly). The representative average unit after-tax costs for
propane and kerosene are based on the projected 2025 U.S. residential sector prices found in EIA's Annual Energy Outlook 2025
(AEO2025) (April 15, 2025). The Short-Term Energy Outlook and the Annual Energy Outlook are available on the EIA website at https://www.eia.gov. For more information on the data sources used in this notice, contact the National Energy Information Center, Forrestal Building,
EI-30, 1000 Independence Avenue SW, Washington, DC 20585, Telephone: (202) 586-8800, Email: infoctr@eia.doe.gov.
The 2025 representative average unit costs under section 323(b)(4) of the Act are set forth in Table 1, and will become effective
April 27, 2026. They will remain in effect until further notice.
Signing Authority
This document of the Department of Energy was signed on March 17, 2026, by Audrey Robertson, Assistant Secretary (EERE) for
Critical Minerals and Energy Innovation, pursuant to delegated authority from the Secretary of Energy. That document with
the original signature and date is maintained by DOE. For administrative purposes only, and in compliance with requirements
of the Office of the Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and
submit the document in electronic format for publication, as an official document of the Department of Energy. This administrative
process in no way alters the legal effect of this document upon publication in the
Federal Register
.
Signed in Washington, DC, on March 24, 2026. Jennifer Hartzell, Alternate Federal Register Liaison Officer, U.S. Department of Energy.
| Type of energy | $
Per million
Btu 1 | In commonly used terms | As required by test procedure |
| --- | --- | --- | --- |
| Electricity | 50.47 | 17.22 ¢/kWh 2 3 | $0.1722/kWh. |
| Natural Gas | 14.37 | $1.43/therm 4 or $14.9/MCF 5 6 | $0.00001437/Btu. |
| No. 2 Heating Oil | 25.91 | $3.56/gallon 7 | $0.00002591/Btu. |
| Propane | 25.68 | $2.35/gallon 8 | $0.00002568/Btu. |
| Kerosene | 25.11 | $3.39/gallon 9 | $0.00002511/Btu. |
| Sources: U.S. Energy Information Administration, Short-Term Energy Outlook (September 9, 2025) and Annual Energy Outlook (April 15,
2025). | | | |
| Notes:
Prices include taxes. | | | |
| 1 Btu stands for British thermal units. | | | |
| 2 kWh stands for kilowatt hour. | | | |
| 3 1 kWh = 3,412 Btu. | | | |
| 4 1 therm = 100,000 Btu. | | | |
| 5 MCF stands for 1,000 cubic feet. | | | |
| 6 For the purposes of this table, one cubic foot of natural gas has an energy equivalence of 1,037 Btu. | | | |
| 7 For the purposes of this table, one gallon of No. 2 heating oil has an energy equivalence of 137,381 Btu. | | | |
| 8 For the purposes of this table, one gallon of liquid propane has an energy equivalence of 91,333 Btu. | | | |
| 9 For the purposes of this table, one gallon of kerosene has an energy equivalence of 135,000 Btu. | | | |
[FR Doc. 2026-05899 Filed 3-25-26; 8:45 am] BILLING CODE 6450-01-P
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