To save time and money on home renovations, consider these two ideas.

1.  Heat on the rooms of the house that you are using.  By using space heaters  and ceiling fans instead of your whole-house, forced air system, you can dramatically reduce your ongoing heating bill.

2.  Insulate well. Use weather stripping around doors and windows and put plastic sheeting over the windows.  Don’t forget, you can get a tax credit for making some energy saving home modifications.  Check out http://www.energystar.gov/index.cfm?c=tax_credits.tx_index for more details.

1.  Do an energy audit.  If your utility company offers it, get a free check for energy leaks in and around your home.  You can also go to energystar.gov for a guide to do it yourself.

2.  Lower your thermostat in the winter.  You can cut your heating bill by 1-2% for each degree you lower the temperature.  If you get a little chilly in the evening, put on a comfy sweater or sweatshirt or cuddle up with your significant other under a blanket.

             Under the proposed measures to reduce carbon dioxide emissions by our current Congress, called cap and trade agreements, everyone should expect utilities and gasoline expenses to increase.  This increase will primarily impact the low to middle income families as we expect substantial increases in utility bills.  In addition, this will impact heavy users of electricity, primarily in manufacturing, resulting in either the costs to comply with the regulations being passed on to consumers or the transfer of these operations to countries where the cap and trade rules do not apply.  This of course will cause more job losses in this country. 

It is obvious the goal is not to reduce emissions.  The United States has had more reduction of emissions without these agreements than have European countries, which already put these agreements in place.  So what is the point?  The real goal is to introduce a socialist agenda and to create another profit center for energy producing companies.  Ken Lay, former CEO of the now defunct Enron, was a strong proponent of this plan because of the business opportunities and the profits it creates at the consumer’s expense. 

As consumers, we should begin rethinking of ways to reduce utility bills.  Those with low incomes may find there can be help through the Home Energy Assistance Program (HEAP).  Additionally, newer appliances tend to be more efficient than older appliances.   An eighteen year old air conditioner can use as much as twice the energy as a newer model. 

For those in older homes, window replacement may have long-term savings, but measure how long you plan to stay in the home first.  Another great value is to identify energy loss in remote places in the home including crawl spaces, under sinks, and though openings in the basement.  Insulating in and around these areas and caulking around doors and windows offer great benefits in reducing heat and cooling loss.

Attic insulation will yield a high value because it reduces heat loss in the winter and cooling loss in the summer.  It is also important to know that insulation settles over time reducing the R-factor, or energy loss resistance, and should be replaced.  Insulating hot water pipes, changing filters on furnaces, adding hot water heater blankets, and using florescent bulbs rather than incandescent bulbs will also help.  My books Saving Without Sacrifice and Saving Without Sacrifice In Action cover over forty more ways to reduce utility bills.

            Energy cost should double in the next five years because of inflation and the new cap and trade agreements.  As mentioned earlier, fraud is expected to be rampant based on Europe’s experience with these regulations.  The environmental effect is considered so remote that it will not be measurable.  The economic impact could be devastating.  Preparation for what is coming is always the best cure.

            Robert Ostrander, CFP®

            SWS Advisors, Inc.

A new Energy Star-rated model runs on about $40 worth of electricity.  A new $600 refridgerator will last for decades and could pay for itself in less than seven years.

To see how much you can save by replacing your old refridgerator, click here.

To help lower that amount, try using fluorescent bulbs instead of incandescent. While the upfront cost may be more, they last 8-10 times as long and use 75% less energy, according to Energy Star®.

Another way to save is to adjust your thermostat. Every degree you raise your thermostat in the summer shaves 2 percent off of your energy bill. And for every degree you lower the heat in the winter, you can save as much as 3 percent.