Can newfangled utility bills persuade Americans to use less energy?

You've swapped out your old thermostats for programmable models, replaced inefficient incandescent lightbulbs with the best compact fluorescent lightbulbs, followed our advice for saving energy at home, weatherized your attic, and taken advantage of tax credits and other incentives for energy-related home improvements.

There are still other ways to squeeze some more energy savings out of your home, and your utility company might be able to help—not by giving you an energy audit or lowering your rates (like that'd ever happen!). Rather, some utilities nationwide are sending out new bills that show your energy use compares to those of your neighbors, with a goal of getting you to keep up (or is that down?) with the Joneses. See the image below for some of the detailed information customers receive.

National Grid is sending 50,000 of its Massachusetts customers bills (shown) with data showing how their gas and electricity consumption compares to the 100 nearest and 20 thriftiest households of similar size in the area, according to this Boston Globe report. "There's obviously a little bit of a competitive aspect to it, to see if you can one-up your neighbors in terms of energy savings,'' said Monica Ibrahim, program manager for the National Grid program, told the paper.

The bills also contain energy-saving tips to spur energy hogs to consume less. A nationally representative survey by the Consumer Reports National Research Center found that 55 percent of respondents had done very little to conserve energy in their homes.

The technology for the consumption comparisons in these bills comes from Arlington, Virginia-based software company Opower, which has established partnerships with 21 utilities nationwide, including the Sacramento Municipal Utility District and Puget Sound Energy. "We're best known for use of behavioral science to show people how their energy usage compares to that of their neighbors," says Opower CEO Daniel Yates, whose company's software draws upon psychologist Robert B. Cialdini's theories of persuasion. National Grid hopes Opower-assisted bills will persuade customers to cut household energy consumption by 3 percent a year over the next decade. (Learn more about how the billing is designed to work.)

If your own utility still isn't using such high-tech bills, you might want to look into Google's PowerMeter or Microsoft's Hohm services or one of the watt meters we tested to ferret out energy-wasting appliances and practices.—Gian Trotta | e-mail | Twitter | Forums | Facebook

Essential Information: Our Energy Saving & Green Living guide offers other advice, including updated coverage of the $300 million State Energy Efficient Appliance Rebate Program, aka cash for clunkers for appliances.

 

Weekend Project: Make your home more energy efficient during Energy Awareness Month

The poster for the U.S. Department of Energy's Energy Awareness Month campaign for 2009 (shown) declares, "We're putting all the pieces together" and shows a jigsaw puzzle of the United States. That's an apt representation of how puzzling the energy issue can be for many consumers. But as you'll read in our energy-saving special in the October 2009 issue of Consumer Reports, saving big bucks on your utility bills doesn't have to be that complicated.

If you've already made your home as efficient as possible but need appliances, read our FAQ on the $300 million cash for clunkers for appliances program.

Install a programmable thermostat. Lowering your thermostat by 5° to 10°F at night and when no one is at home will reduce your winter heating bills by up to 20 percent, and a programmable thermostat makes heat management a snap. Refer to our thermostat ratings (available to subscribers) to find a model that's easy to operate and maintains consistent temperatures. After you choose a new model, learn how to install a programmable thermostat.

Check attic insulation. Many homes lack adequate attic insulation, especially those built before 1980. You need at least 11 inches of fiberglass or 8 inches of cellulose to keep your house warm in the winter and cool in the summer. Use the DOE's ZIP-code insulation program to get specific insulation recommendations for your home and Energy Star's page with insulation information. And take advantage of federal tax credits on the purchase of new insulation.

Plug air leaks. While you’re checking for insulation, inspect the attic floor for cracks and gaps around canister lights, ductwork, and other electrical and plumbing penetrations. Recessed-light fixtures are another air-leakage source because many designs require some airflow to prevent them from overheating.  Consider replacing these with models designed for airtight construction. Even the smallest leaks contribute to the stack effect, whereby heated air escapes through the attic and is replaced with cool air from lower levels.

Get your heating system inspected. An annual checkup by a licensed heating contractor will eliminate inefficiencies in your heating system. Though not included in the typical annual checkup, have the duct-distribution system inspected to find and seal leaks. Additionally, sections of the duct system that pass through unheated parts of the home should be insulated properly. An annual inspection can also reduce the risk of carbon-monoxide poisoning from furnaces. Even with an inspection, it's critical to install CO and smoke alarms on every level of your home; read our report on both types of alarms in the November 2009 issue of Consumer Reports.

Consider an energy audit. If you suspect your home is severely inefficient, it may be worth hiring a home-performance contractor to perform a whole-house energy audit. Some pros will waive the cost of the audit if you hire them for the work. If you're lucky, your contractor will be up on the latest incentives as well as PACE, or Property Assessed Clean Energy, bonds.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Visit our Energy Saving & Green Living guide for information on more ways to save energy.

Q&A: Which type of pricing plan should I choose for the natural gas I use at my home?

I'd like to try to save money on my natural-gas bill this winter. Can I lock in a price for the season?

You can, but only if locking in a price is an option where you live. If you're in a state where utility companies handle both the supply and the delivery of natural gas, you can't lock in a price since utilities may offer only variable-rate plans, in which you pay the current market price.

But if you live in a state in which the supply and the delivery have been unbundled, you can shop around for the lowest price from natural-gas suppliers, aka marketers.

To determine whether this "customer choice" is available where you live, check the Natural Gas Residential Choice Programs map from the Energy Information Administration or go to the Web site of the public-service or public-utility commission in your state, which might include a list of reputable marketers.

Marketers offer a range of pricing options, including fixed-rate plans, in which you lock in the price for the life of your contract; variable-rate plans; and capped-variable-rate plans, in which the price floats with the market but not above a set limit. Marketers might also offer deal sweeteners to get you to sign on with them, such as 10 percent off your highest gas-use month or a $75 debit card.

"Fixed-rate plans are for the risk averse," says Steven J. Maslak, president and CEO of Gateway Energy Services, a natural-gas marketer with 300,000 customers in eight states. Yes, you'll lose out if the price drops, but, says Maslak, "you'll be singing hallelujah if a hurricane hits the Gulf of Mexico" and prices start to climb. A colder-than-expected winter or geopolitical unrest somewhere in the world could also drive prices up suddenly. (The chart, from GES, shows the recent price drop for natural gas.)

The EIA's recent projection that average U.S. consumers who heat with natural gas will pay 12 percent less this year than they did last winter might tempt you to lock in the price with a fixed-rate plan. But, remember, the EIA's projections, which are relative to the previous year, can change. For example, in September 2008 the EIA projected a 20 percent increase in winter-heating bills. By December 2008, the EIA had projected a 2 percent decrease. So opt for a variable-rate plan if you don't mind rolling the dice and dealing with prices that fluctuate monthly.

That element of uncertainty might make the capped-variable-rate option a good middle ground. You benefit from falling prices without taking too big a hit if the cost of natural gas goes up.

Whichever way you go, consider a budget-payment option, which levels payments over 12 months and eliminates wintertime spikes. You can also save yourself some money by reading the fine print before signing a contract. For example, marketers usually charge an early-termination fee on a fixed-rate plan, so make sure you understand the terms and verify that the termination fee isn't exorbitant ($200 is average).

Also, check that the price you agree to is "to the burner tip." That means it includes any pipeline, storage, and other ancillary charges that an unscrupulous marketer might try to tack on to the price of the actual fuel.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: The best way to save on winter heating costs is to make your home as efficient as possible. Start by installing a programmable thermostat and following our advice for buttoning up your home. For more information on energy pricing, read "How to Buy Green Electricity." Stay on top of the latest news surrounding the cash for clunkers for appliances program.

U.S. households could bank savings on heating costs this winter

Your heating bill could drop this winter, thanks to lower fuel prices and a forecast of slightly milder weather in many areas, according to the latest projections from the U.S. Department of Energy's Energy Information Administration.

The EIA estimates that the average U.S. household will spend about $960 on heating during the October 2009-March 2010 heating season. That's a decline of $84, or 8 percent, from the 2008-2009 heating season. The biggest savings are expected for homes that heat with natural gas or propane. You can save even more money by installing and using a programmable thermostat.

• Natural gas. The EIA expects that the average household that heats with gas save 12 percent this heating season, with those in the Midwest spending 15 percent less. (Check out our buyer's guide to furnaces.) A record high inventory of natural gas has resulted from a huge decrease in demand by the industrial sector and an increase in domestic production, including shale gas.

• Propane. Midwesterners might see an average decrease of 21 percent while those in the West should spend only 5 percent less. One reason for the variation is that the Midwest is projected to have a winter that's about 4 percent warmer while the West could be about 4 percent colder, according to the National Oceanic and Atmospheric Administration.

• Heating oil. Oil is used by only 7 percent of U.S. households, the majority of which are in the Northeast. This season, those who heat with oil could save about 3 percent, around $60. Heating oil is averaging about $2.64 a gallon, 2 cents less than last season and 67 cents less than the in 2007-2008.

• Electricity. Those who heat with electricity will spend 2 percent less than last winter , an average of $20.—Kimberly Janeway | e-mail | Twitter | Forums | Facebook

Essential reading: Our latest report on pellet stoves highlights the pros and cons of this alternative heat source. (Ratings are available to subscribers.) To cut energy use year-round, find out how to save up to $1,500 on your annual utility bills, read our report on solar water heaters, and learn which compact fluorescent lightbulbs top our ratings.

Weekend Project: Even as summer enters final weeks, save by taking advantage of cooling incentives

Cool roofs are a hot item, with no less an advocate than Energy Secretary Steven Chu promoting their potential to save energy during an appearance on The Daily Show With Jon Stewart. And while the U.S. Department of Energy is lacking in some ways when it comes to reducing energy use, the United States Postal Service has unveiled a new green roof (shown) atop its 2.2 million square foot mail-processing facility on Manhattan's West Side.

While such a project is too ambitious for your home, you should take advantage of the plentiful federal, state, and utility incentives for air conditioning and other improvements and equipment that will help you reduce your cooling and heating costs. (Read "Cash for Clunkers Moves to Appliances. Money Back for Your Old Kelvinator?" for details on the federal government's $300 million State Energy Efficient Appliance Rebate Program.)

Air Conditioner Tune-Ups
There are several state and local utility incentives for central-air systems. Rocky Mountain Power and the Long Island Power Authority provide $100 rebates for tuning up central-air-conditioning systems.

Duct Insulation
As much as 30 to 40 percent of your cooling energy can be lost through leaks or when uninsulated ducts pass through uncooled spaces like the attic and garage. "Its certainly reduces the impact of a very efficient central-air unit if your ducts are leaking like a sieve and you have inadequate attic insulation," says Ed Clark, director of communications for Austin, Texas-based Austin Energy. That utility is offering rebates for duct-system performance testing, sealing, replacement, and insulation.

Programmable Thermostats
Today's best programmable thermostats can help you cut heating and cooling costs by up to 20 percent. Utilities in 34 states offer rebates of up to $70 for programmable thermostats—enough to cover the entire purchase price of seven of the 10 recommended models in our ratings (available to subscribers).

Whole-House and Ceiling Fans
California's Sacramento Municipal Utility District offers a $100 rebate on a whole-house fan system. These work by pulling in cool air from open windows and exhausting hot air from vents in the upper part of the home. Pasadena Water & Power will give its customers a $50 rebate on a ceiling fan, provided it's outfitted with an energy-saving compact fluorescent lightbulb and you buy it from a local retailer.

Weatherization Projects
Weatherization products such as energy-efficient windows, insulation, and doors can qualify for a federal tax credit of 30 percent of the cost, up to a $1,500 maxiumum. California's Alameda Municipal Power will pay up to 80 percent of caulking, weather stripping, and building insulation costs. National Grid offers customers in Massachusetts a 75 percent reimbursement up to $2,000 for similar improvements. The Orlando Utility Commission offers a $1-per-square-foot rebate on Energy Star-qualified windows and a $100 rebate for installing window film. Note that payback for your investment in these types of projects can be much longer than it is for other improvements you'll make.—Gian Trotta | e-mail | Twitter | Forums | Facebook

Essential information: See our maintenance checklist for air-conditioning systems and learn how to add a ceiling fan. Our latest report on cooling (available to subscribers) provides details on window, portable, split-ductless, and central air conditioning.

By the Numbers: When it comes to programmable thermostats, Department of Energy doesn't follow its own advice

$11.5 million

Amount the U.S. Department of Energy could save by using programmable thermostats in its buildings, according to a July 2009 audit by the DOE's Office of Inspector General. That situation erases some of the $400 million that the federal government says it's saving annually by making its buildings more energy efficient.  

In 20 of 55 audited buildings, programmable thermostats—or "setbacks," as the report calls them—had been installed but were not being used. "They've actually invested taxpayer money to be more efficient, and then failed to use it," Lane Burt, an energy-policy analyst for the Natural Resources Defense Council, said in this article in The New York Times. In another 15 buildings, thermostats had not been installed or were no longer functional.

"In our judgment, the Department and its facility management and operating contractors need to place greater emphasis on reducing energy consumption through the application of setbacks. Although we found that facility contracts for the sites we visited had formal provisions which required the implementation of setbacks, the actual execution was spotty, suffering from a lack of specific policies or procedures establishing a regime using thermostat setbacks as an effective energy conservation tool," read "The Department of Energy's Opportunity for Energy Savings Through the Use of Setbacks in Its Facilities" audit report.

Installing programmable thermostats is an easy, cost-effective way to lower your energy bill. You can cut heating and cooling costs by at least 10 percent by setting back your thermostat(s) 10° to 15°F for eight hours a day. The source of this sage money- and energy-saving advice? None other than the DOE itself.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Read our report on programmable thermostats to find a model that's easy to operate and maintains steady temperatures. And look for our special report on energy efficiency in the October 2009 issue of Consumer Reports, online and on newsstands next week.

By the Numbers: Energy-efficiency investments would pay huge dividends, says McKinsey & Company report

$1.2 trillion

Amount U.S. consumers and businesses could save by 2020 by boosting their energy efficiency, according to "Unlocking Energy Efficiency in the U.S. Economy," a new report from management consulting firm McKinsey & Company. (The report covers nontransportation energy use.)

Under current conditions, the United States wastes more energy each year than Canada consumes. Our nearly 130 million homes, many of which lose energy to leaky ductwork, underinsulated attics, and inefficient appliances, account for roughly 35 percent of the potential energy-efficiency gains, says the report. (You can make your old windows less drafty by caulking gaps, as shown. And use a programmable thermostat to boost your household-energy savings.)

As the report details, an initial investment of $520 billion would be needed to reduce annual energy consumption by 23 percent by 2020, which translates into $1.2 trillion in savings and an end-use reduction of 9.1 quadrillion British thermal units.

Those savings are key, because worldwide energy use is projected to soar over the next two decades, according to the U.S. Department of Energy's Energy Information Administration. The EIA says energy use will reach 678 quadrillion Btu in 2030.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Pinpoint the biggest energy savers and energy hogs in this report on residential energy use. If you're in the market for new appliances, use our free buyer's guides to find the most-efficient washing machines, dishwashers, refrigerators, and air conditioners in the Consumer Reports ratings. And learn more about weatherization.

Programmable thermostats are no longer part of the federal Energy Star program

The U.S. Environmental Protection Agency recently announced that it will suspend its Energy Star specification for programmable thermostats effective December 31, 2009. Any models manufactured after that date cannot bear the Energy Star label; manufacturers will have several months to update their Web sites and promotional material.

While that suspension might seem odd—using a programmable thermostat can help you cut your cooling and heating costs by up to 20 percent—it follows investigations by the EPA into concerns with programmable thermostats, including difficulties in using these devices. Indeed, as we found in our October 2007 report on programmable thermostats, the controls on these devices are sometimes so confusing that one could cause your energy costs to go up. The EPA administers Energy Star with the U.S. Department of Energy.

The EPA also questioned the lack of differentiation between Energy Star-qualified models and nonqualifying ones; the scant evidence showing that programmable thermostats conserve energy on a consistent, nationwide basis; and the fact that savings ultimately come down to consumer behavior—even the best programmable thermostat won't save energy if you doesn't use it properly. Programmable thermostats had been part of Energy Star since 1995.

The EPA will continue to educate the public about the savings associated lowering a thermostat in winter or raising it in summer, particularly when the home is unoccupied, a process that is automated with programmable thermostats. The agency will also work with manufacturers and other interested parties on a new Energy Star specification.

The EPA's decision doesn't mean you should abandon using a programmable thermostat. To find the right model for your home, read our buying advice and check out the ratings of more than two dozen models (available to subscribers).—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Try these 25 ways to save energy. And for advice on energy-efficient ways to stay cool this summer, read our July 2009 report on air conditioning (available to subscribers).

Better Business Bureau complaints and "Amish heaters"

Unless you've become a recent devotee of spartaneity, you've probably seen one of the TV or print ads for the Heat Surge Roll-N-Glow Electric Fireplaces, commonly called Amish heaters. In the ads, Amish craftsmen radiate calm contentment as they craft wood mantels for the Heat Surge space heaters. The ads are so popular that they've generated the requisite parodies on YouTube. (Read the Consumer Reports review of the Amish heater.)

The Better Business Bureau has received complaints about a range of issues related to the heaters, including customer service, pricing, and service. Still other consumers have taken issue with Heat Surge's ads. As the Los Angeles Times reported last week, a BBB probe revealed that some of the people pictured in the ads are Amish and that the mantels, unlike the China-made heaters, are manufactured in this country.—Gian Trotta

Essential information: Heat Surge claims the heaters will help you "save big on your heating bills." (You can, if you employ zone heating.) "Don't Let Energy Savings Go Up and Out the Chimney" includes proven ways to save energy during heating season, with information on space heaters, programmable thermostats, and wood- and pellet-burning stoves.

No jacket required in the Oval Office. Any impact on energy efficiency?

Washington is a busy place these days, with President Barack Obama's stimulus plan among the most critical matters facing the new administration and Congress.

But some chatter in the nation's capital has also focused on another subject: Obama's dressing style. The president has been seen working in the Oval Office without a suit jacket or sport coat (check out the official White House photo, right), something that never happened during George W. Bush's two terms, according to this UPI story.

We're not concerned about the president's clothing but rather energy use in the White House: If Obama is going without a jacket, do his aides have to keep the temperature higher in the Oval Office? (The forecast high temperature in D.C. for the next few days is only 38°F.) In light of the president's keen—and welcomed—interest in energy efficiency, including weatherization, we hope that they're not wasting energy in the 132-room, 55,000-square-foot White House. Note to the 1600 Pennsylvania Avenue maintenance crew: For every degree you lower the temperature, you can save about 3 percent on your heating costs.

Given that the White House is not the most technologically advanced place around—read this Washington Post story for some details—the presidential offices and residences might not be equipped with state-of-the-art energy-saving products, including programmable thermostats. Here's hoping the president sets a good example for us all by making his new home and workplace as energy efficient as possible.

Some suggested Home & Garden blog reading for the president's staff: "Don't Let Energy Savings Go Up and Out the Chimney" and "Tip of the Day: Cut Your Heating Bill, Boost the Value of Your Home."—Steven H. Saltzman (wearing a V-neck sweater)