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 Michigan PSC predicts High Heating Bills This Winter

Webmaster's Note: The following article was reprinted from the Michigan Public Service Commission's website (link at the end of this article). Local newspapers, radio and TV are all reporting a projected increase of $106 to $253 dollars for this coming heating season.  The time for installing energy saving products is now, before the high cost of heating and lighting your home hits your pocket book.  WattBusters offers a wide variety of energy and water saving products for you home.  Simply click here to order online.

Heating-fuel expenditures per household are expected to increase this winter in Michigan and the rest of the country due to both higher fuel prices and, colder weather than last year which was warmer than normal. The following table shows historical and normal weather, average Midwest household demand, total expenditures, and Michigan price projections for natural gas, #2 heating, and propane. In Michigan 79 percent of homes are heated with natural gas, 10 percent propane 7 percent electricity, 4 percent home heating oil with the balance use wood or solar.

This analysis is based on heating bills analysis and price projections in the Energy Information Administration October 2004 Short Term Energy Outlook. The analysis uses historic Michigan prices, projected based on national trends. The actual increase for any given home will depend on many factors and the relative energy efficiency of the home. These figures are intended to show relative magnitude of the change in price and consumption.

The estimated heating bills reflect changes in fuel bills rather than the actual consumer expenditures based on the specific heating requirements of their home. Year-to-year changes in total expenditures are sensitive to consumption and prices, both of which vary by season and by fuel. For example, per-household natural gas expenditures rose last winter about 14 percent despite a weather-induced 6 percent decline in consumption. This winter, natural gas expenditures are projected to rise 15 percent due to a 3.7 percent increase in consumption and an 11 percent increase in prices. Last winter, heating oil expenditures for a typical household declined due to a 6 percent decline in consumption and a 4 percent decrease in prices. This winter, expenditures are projected to rise by 29 percent due to substantially higher prices. Last winter, propane expenditures rose slightly as an 8.8 percent price increase negated a 6 percent consumption decline.

Ways to Lower Heating Bills
  • Lower heat at night and when no one is home. A programmable thermostat can be set to do this automatically.
  • Set the hot water heater to 120 degrees F and insulate the water heater and hot water pipes following the manufacturer's instructions.
  • Wash clothes in warm or cold water and try to do loads in the evening.
  • Clean or replace the furnace air filter regularly following the manufacturer's recommendations.
  • Have an annual inspection and maintenance done on the furnace.
  • Check heating ducts for air leaks and insulate those in unheated areas.
  • Caulk and weather-strip around doors and windows. Close curtains at night during the winter.
  • Add insulation to the attic and walls - including the rim joist area above the basement walls.
  • When purchasing new appliances, furnaces, windows, or a new home, look for those with the ENERGY STAR® logo, signifying they meet energy efficiency standards.
For more information see: www.michigan.gov/bewinterwise where users can find information on natural gas prices, conservation and efficiency measures to help off set price increases and low-income energy assistance programs. Another Web site of interest is the Home Energy Saver at http://hes.lbl.gov



Source: Michigan Public Service Commission



 
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