Keep a lid on summer energy costs

by Center for Personal Finance editors

NEW YORK (6/16/06)--As automobile drivers cope with high gasoline costs, sweltering temperatures are sure to put an added strain on our wallets. Take steps now to cut high energy costs to keep your cool this summer (SmartMoney.com May 19).

According to the Environmental Protection Agency, the average household spends $1,400 a year on gas and electricity. Expect much higher costs this year--the Alliance to Save Energy warns that amount could jump by as much as 120% this year.

These simple strategies will help:

Wait for off-peak. Find out if your utility company offers discounts for off-peak usage. Running your dishwasher or clothes washer and dryer in early morning or evening hours could pay off. For example, a company may charge three cents per kilowatt (kWh) from 7 p.m. to 9 a.m. on weekdays and all day on weekends and holidays, but that rate may jump to 12 cents per kWh during peak times.

Get energy-efficient upgrades. Look for the Energy Star label on appliances and windows. Take advantage of a federal tax credit; if you purchase energy-efficient windows, for example, you can get a one-time tax credit for 10% of the cost, up to $200.

Go programmable. When you're not at home, let the thermostat do the work. For every degree you let the house warm up this summer, you can save 2% to 3% on your energy bill, according to the American Council for an Energy-Efficient Economy.

Use ceiling fans. Used correctly, they can make a room feel six to seven degrees cooler. During the summer months, click the setting to "forward" so the fan blows the air down and you feel a breeze. During the winter months, click the setting to "reverse" so it blows the air up and circulates warm air. However, some people with higher ceilings--like a stairwell--do the opposite (wonderquest.com). Lower levels of a house tend to be cooler than upper levels, so in the summer, consider running the fan in a blowing-up direction to keep cool air-conditioned air--blowing from the upstairs vents--upstairs where you want it.

Clean your filters. Clogged filters block air flow and make appliances work harder. Take a vacuum to the dust that collects on your refrigerator's coils.

Make hot water less hot. Lower the temperature on your hot water thermostat to medium heat, or 120 degrees, and you could save about 10% on your energy bill.

Go green. Landscaping makes a difference; cut back on water usage by planting drought-resistant perennials, shrubs, and trees. Shield the house from direct sunlight by planting leafy shade trees, which could knock $10 to $250 off your annual heating and cooling costs.

Seal leaks. Arrange for a home energy audit so professionals can spot leaks that let expensive cooled air out into the yard.

Unplug it. Just because that phone charger isn't charging doesn't mean it's not using energy; unplug it when you're not using it. That goes for MP3 players and other devices, too. And if you keep your computer on all day, that's an additional $88 a year added to your electric bill, according to GreenerChoices.org. Put your computer on sleep mode or turn it off when you're not using it. Other energy-sucking appliances include televisions, VCRs, DVD players, stereos, and microwave ovens. Unplug them when you go on vacation unless you're taping a program.

For more information, read "Energy Bill Helps Home Improvers and Hybrid Car Buyers" in the Home & Family Finance Resource Center money savvy section.