How to Cut Your Winter Energy Bills

FREAK SNOWSTORMS MAY be the least of your worries this winter. One look at your energy bill may be all it takes to throw your life into chaos.

A combination of higher fuel prices and colder-than-usual weather is expected to push the average U.S. household's heating costs up 10%, to a total $975 for October through March, according to the Energy Information Administration's Winter Fuels Outlook. The exact increase depends largely on the kind of fuel you use. Consumers warming up with home heating oil should expect to spend 22% more; propane, 16%; natural gas, 10%; and electricity, 4%.

But that's only part of the problem. Those higher prices mean you'll also pay more for lighting and powering everything in your home. Given the EPA's estimates that heating accounts for 50% of your bills, lighting for 25% and appliances, 25%, your total winter energy bills for October through March could top $1,900.

Worse, the projections come on the heels of a scorching summer -- and hotter than normal fall -- that prompted many consumers to keep their air-conditioners on full blast. (As recently as Oct. 9, more than 30 cities nationwide set new records as temperatures soared to the 80s and 90s.) "Traditionally, this is a transitional season where people aren't using heating or cooling, so we're off to a bad start," says Rozanne Weismann, a spokeswoman for the Alliance to Save Energy.

Consumers will get a little help from the one-week extension of Daylight Saving Time in November, and by springing back into it a week earlier in March, per guidelines in the Energy Policy Act of 2005 that take effect this year. "The idea is that it's supposed to help decrease energy costs because it's lighter longer," says Jennifer Thorne Amman, a senior associate with the American Council for an Energy-Efficient Economy. "But it is only two extra weeks."

To more effectively keep your winter energy bills in check, you'll need to take action now. Try these five tricks to cut your costs by up to 30%:

Shop around for a supplier
"Many consumers are still in the mindset that energy is just this overhead cost that's supplied by a third party we don't know, and we don't have any choice in the matter," says Maria Vargas, spokeswoman for the EPA's Energy Star program. The good news: It's likely you can shop around, saving up to 20% in the process.

· Electric and Natural Gas. Consumers in 18 states have the option to buy their power from a supplier other than their public utility. While you're still receiving service from your public utility company, which controls the lines, you're purchasing the power itself from another supplier, says Vargas. (Click for tips on assessing your options.)

· Heating Oil and Propane. Which company fills your tank is entirely up to you. Consider fuel co-ops, whose bulk-buying enables members to lock in discounts. Members of Heat USA a home heating oil group in the Northeast, typically save 15 to 25 cents per gallon off full-service providers' prices. Not interested in a seasonal contract? Call individual suppliers for price quotes. The Propane Education & Research Council, a trade group, keeps a database of propane suppliers. Heating oil providers are a bit harder to find. Click for tips, plus more ways to pay less for heating oil. Upgrade your thermostat
Thermostats are the new VCRs -- few people know how to program them, says Weismann. It's a shame because setting the device to scale back heat while you're at work or asleep can cut your heating bill by 10%. Swap your old model for a new one that bears the Energy Star label. Four preprogrammed settings that automatically scale heat up and down make the device more user-friendly. "They're a snap to set," she says.

Schedule a system checkup
"It's not particularly glamorous, but it's so important to make sure your system is functioning the way it should," says Vargas. A system that is dirty or poorly maintained loses efficiency over time, which means it requires more fuel to output the same amount of heat. Inspection isn't a do-it-yourself job -- you'll need to call in a home heating inspector. Check first with your fuel and energy suppliers, as well as the company from which you purchased your system, she advises. You may be entitled to a free inspection. If not, shop around. Prices can range from $75 to $100.

Block the escape routes
Air leaks occur everywhere -- window frames, attic eaves, beneath your sink and even around electrical outlet plates. Every single one that is left untouched allows pricey heated air to escape, says Weismann. "You're heating the great outdoors," she quips. As you notice drafts, plug them up with foam pads, caulk, and weather-stripping from your hardware store. The $10 to $50 investment -- depending on what you need -- pays for itself over the course of a single winter, she says. Insulation put in place before Dec. 31 may also qualify for a one-time tax credit for 10% of the cost, up to $500. Check the guidelines to determine if your project qualifies.

Chill out a little
Setting your thermostat to a lower temperature will cut your bill by about 2% per lower degree over an eight-hour period, according to EPA estimates. But that doesn't mean you need to walk around wrapped in two extra sweaters. Try these two tricks for a free boost of heat:

· Turn on your ceiling fan. Flip the switch to "reverse," then let 'er rip. "Fans help redistribute warm air, pushing it back down," says Amman.

· Let the sun shine in. Literally. "Sun shining in your windows provides natural warmth," says Weismann. Leave your curtains open during the day -- provided, of course, that you have already sealed up any window drafts.