How to Cut Energy Costs

by CHRISTINE BUURMA

Energy efficiency has come a long way from flickering fluorescent lights. Amid rising fuel prices and increasingly dire predictions about the effects of greenhouse gases, people are seeking ways to reduce their electricity usage and lower their bills. And they're finding it easier than ever, thanks to a host of new products and services from utilities, government agencies and manufacturers.

The Environmental Protection Agency's Energy Star program singles out numerous products that meet energy-efficiency criteria. Utilities across the country are offering programs to help customers cut costs. And there are lots of simple household improvements that can cut your power use and lower your bill.

Here's a look at some of the top tips for cutting costs, from several electric utilities and the EPA.

BUY EFFICIENT PRODUCTS
One of the best ways to cut costs is to use energy-efficient appliances. And there's a simple way to track down products that fit the bill: the EPA's Energy Star designation. The label, which was introduced in 1992, now adorns a wide array of appliances that meet the agency's efficiency standards, from dishwashers, refrigerators and flat-screen television sets to more-modest gadgets such as cordless phones and battery chargers.

Some Energy Star products have a higher upfront cost, but the EPA says the electricity savings over the life of the product typically offset the premium. According to the EPA, a home that uses only Energy Star products and appliances will use 30% less energy than a house equipped with standard products, saving the typical homeowner about $400 a year.

Consumers saved $12 billion on their utility bills in 2005 by buying Energy Star products, the agency says. That's up from $5 billion in 2000. Greenhouse-gas reductions through the program in 2005 were the equivalent of the emissions from 23 million vehicles, up from 11 million vehicles in 2000.

Pablo Paster, a sustainability engineer and editor of AskPablo.org, a site for green tips at home, tells Dow Jones Online's Stacey Delo where she can cut energy costs in the home.

TALK TO YOUR UTILITY
Pablo Paster, a sustainability engineer and editor of AskPablo.org, a site for green tips at home, tells Dow Jones Online's Stacey Delo where she can cut energy costs in the home.

Most utilities in the U.S. offer a variety of energy-efficiency programs. The offerings often include free or low-cost audits of customers' homes to determine their energy efficiency, as well as rebates for appliances that meet certain energy-efficiency criteria. (In many cases, that means Energy Star products.)

For instance, Minneapolis-based Xcel Energy Inc. offers home audits and rebates for appliances, as well as rebates for designated home improvements that boost energy efficiency. For new homes, Xcel will cover the cost of installing energy-efficient components that meet certain guidelines.

The utility has seen a significant increase in customer interest since natural-gas prices began climbing in late 2003, says Peter Narog, manager of consumer demand-side management marketing. "The past two years, we almost haven't even had to promote the program," he says.

Xcel's program reduced customers' natural-gas usage by 160 million cubic feet in 2006 -- enough to meet the natural-gas needs of 160,000 average homes for four days -- surpassing the utility's goal of 124 million cubic feet.

Southern California Edison Co., meanwhile, offers rebates for Energy Star appliances and provides energy-efficiency audits. Customers can have the audits done in their home by a third party -- usually at a cost of $150 to $300 -- or they can do a more-basic online audit at the utility's Web site. Southern California Edison also offers low-income customers a break: The utility will cover the cost of weatherizing their homes and installing certain energy-efficient appliances.

Customers' interest in the plan grew after California's 2000-2001 energy crisis, which resulted in rolling blackouts and skyrocketing electricity prices. "After the energy crisis, everyone got very excited about energy efficiency and really started to embrace it," says Lynda Ziegler, Southern California Edison's senior vice president of customer service. Californians are also interested in the environmental benefits of energy efficiency, she says.

Most utilities in Europe offer similar programs. The U.K.'s ScottishPower PLC, for instance, sends energy-efficiency messages and advice with all of its customer bills and statements, says Chris Brennan, energy-services marketing manager for the company. ScottishPower customers can call a free telephone number to receive energy-efficiency advice from trained advisers.


HOME IMPROVEMENTS

There are also a host of simple improvements you can make around the house to cut down on wasted power:

Unplug your TV. Home-entertainment systems are big energy hogs to begin with. But many of them have a feature that eats even more power: They remain in standby mode after you shut them off, continuing to draw electricity. Standby power is responsible for 5% to 10% of total electricity use in most homes and accounts for roughly 1% of global carbon-dioxide emissions, according to the International Energy Agency. "Many customers don't realize that they spend more money to power DVD players when they're turned off than when they're in use," says Penny McLean-Conner, vice president of customer care for Boston-based utility Nstar.

Nstar suggests that customers connect their electronic devices to power strips and turn off the strips when the devices are not in use -- which guarantees the gadgets won't go into standby mode. You could also simply unplug your devices after turning them off.

Change your bulbs. Compact fluorescent bulbs have been substantially improved over the years -- no more flickering and humming -- and they now can be screwed directly into most fixtures. The bulbs, which sell for about $3 apiece, last up to 10 times longer than incandescent bulbs and can save $30 or more in energy costs over a bulb's lifetime.

Lower your thermostat to 68 degrees Fahrenheit. Industry experts say 68 degrees is the lowest indoor temperature that most people find comfortable. For each degree you lower your thermostat, you can save 3% on your heating bill, according to the Edison Electric Institute, the Washington, D.C., industry group for U.S. investor-owned utilities. Installing an Energy Star-qualified programmable thermostat can help, by lowering the temperature automatically at designated times, such as when you're out of the house.

Turn down the temperature on your water heater to 120 degrees Fahrenheit, which is considered adequate or comfortable for most household needs. Lowering your water heater to 120 degrees from 150 degrees can lower your utility bill by $1.80 a month, according to Greenville Utilities, which provides electricity and other utility services to customers in Greenville, N.C., and surrounding areas. Another water-temperature tip: Wash your clothes in the coolest water possible. About 80% of the energy used to run your washer comes from heating the water.

Keep fireplace dampers closed to lessen heating and cooling loss. An open or poorly sealed damper can draw air up the chimney even when the fireplace isn't in use, creating a net energy loss on an annual basis, according to Progress Energy Inc., a Raleigh, N.C., energy holding company.

Have your furnace maintained regularly by a professional, and keep your furnace filter and vents clean. Dirty furnace filters and vents cause the furnace to burn less efficiently, making it more difficult to heat your home.

Keep the curtains open in rooms with southern exposure during the winter and closed during the summer. In the Northern Hemisphere, south-facing windows receive the most intense light in both the summer and winter. Letting in that light in the winter will help keep your house warm; blocking it in the summer will help cool things off. In both cases, you'll be able to use less power to keep your house comfortable.

Don't run kitchen and bathroom exhaust fans for long periods. Exhaust fans will remove heated or air-conditioned air from your home if they run for more than 15 minutes after you're done cooking or running the water, according to Gulf Power, a Pensacola, Fla., utility. You might also consider replacing your current fan to save on costs: Energy Star ventilation fans use 65% less energy on average than standard models.

THE WALL STREET JOURNAL


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