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Home is where the heat is
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September 14, 2000: 3:37 p.m. ET
Make your winter heating plans now and cut the Big Chill down to size
By Staff Writer Rob Lenihan
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NEW YORK (CNNfn) - The cold weather's coming and Old Man Winter is all ready to spend your money like a sailor on shore leave.
Recent reports indicate energy and heating costs are going to be high this year. In its September study the Energy Information Administration, a division of the U.S. Department of Energy, predicted that, assuming normal winter temperatures, heating fuel expenditures will increase 20-to-40 percent, thanks to higher-than-expected consumption and higher prices.
The government said heating oil and diesel fuel prices could be about 30 cents more per gallon this year, while residential prices could be about 27 percent higher than last winter. 
So what do you do to keep Jack Frost from jacking you up? Experts say economy, like charity, begins at home. The typical American family spends about $1,300 a year on their home's utility bills, but the DOE said a large portion of this energy is wasted.
"The good news," said Mike Solomon, director of marketing for RealHome.com, a homeowners' Web site, "is that you can deal with a lot of the waste, and in many cases for just a few hundred dollars."
Experts say you should conduct a reconnaissance mission around your home to take care of faulty equipment, leaky air ducts and other such energy-draining problems. Keeping your home energy-efficient can increase its value and make it environmentally friendly as well.
The checklist
In its publication Energy Savers, the DOE advises consumers to conduct a home energy audit to find out what parts of your house use the most energy. Solomon said you can do this yourself, or your local utility will do it for you, often free of charge.
When conducting an energy audit, DOE suggests you:
- Check the level of insulation in your exterior and basement walls, ceilings, attic, floors, and crawl spaces. Call your local contractor for advice on checking insulation levels.
- Check for holes or cracks around your walls, ceilings, windows, doors, light and plumbing fixtures, switches and electrical outlets than can leak air into or out of your home.
- Check for open fireplace dampers.
- Make sure your appliances and heating and cooling systems are properly maintained.
- Study your family's lighting needs and use patterns. Look for ways to use day lighting, cut the time the lights are on, and replace incandescent bulbs and fixtures with compact or standard fluorescent alternatives.
If you're looking for air leaks, Solomon said a simple way to find them is to light an incense stick next to a window, door, or fixture and watch the smoke. If it rises, that's good, since hot air rises. If the smoke travels horizontally, that means there's a leak.
Click here for more on energy and heating:
Expensive Winter Looms - Aug. 25, 2000
The heat is down
Want to save money on heating bills real fast? Columnist Ilyse Glink has a simple way: lower your thermostat.
"Lowering your thermostat can cut your heating bill by hundreds of dollars over the course of a year," she said. "Just reducing the temperature from 68 to 66 degrees at night can really change your energy costs."
Maybe you only spend most of your time in one or two rooms of your home. In that case, Glink suggested getting a portable heater for one room and turning the heat down in the rest of the house. A programmable thermostat can lower the heat when you're not at home and turn it back up before you arrive so you don't come home to an icebox at night. 
And then there's insulation. The DOE recommends insulating your home if you have an older house and are uncomfortably cold in the winter or hot in the summer. You can reduce your energy bills and muffle outside noise as well.
Insulation is measured by R-value and the DOE said most homes should have between R-22 and R-49 insulation in the attic.
Lisa Hegland, author of "Notes From Home," said homeowners should check the roof for broken or missing shingles, which can be the source of leaks. Then you can trim the trees around your house so the sunlight reaches in through the windows and provides some natural heat.
The DOE said trees that lose their leaves are the most effective at reducing heating and cooling costs, since they provide shade in the summer and let the sun shine through during the winter. The agency also suggests planting evergreen trees on the north and west sides of your house to deflect winter winds.
If you have a fireplace, Hegland said, have it cleaned by someone who is licensed and who has liability insurance. The National Chimney Sweep Guild said summer is the most convenient and often the most economical time to get those chimneys cleaned and repaired.
The wood for your fireplace should be cured for at least two years and come from a reputable dealer.
Fuel for you
What kind of fuel should you use for your home? Contractor James Carey, who, with his brother, Morris, host the radio program "On the House," said natural gas is by far the most cost efficient means of heating a house. Oil, he said, is very expensive and an oil-burning furnace is high on maintenance. However...
"There's a caveat," Carey said. "If you don't have it or live in an area where it's not available, the cost of such installation can make it difficult to enjoy a nice payback."
You should have your furnace cleaned and filters replaced regularly, Carey said, and an annual inspection of the burners and heat exchange are a must. If your oil burner is 20 years old, Carey said, you should probably replace it with a smaller, more efficient model. Upgrading an older furnace can cost between $2,000 and $4,000, he said. Replacing an oil heating system with natural gas system can run $6,000 or more, he said.
Glink cautioned against rebuilding your home heating system if you don't plan on being in the house for very long, because you may not enjoy the return of your investment. However, Carey said making your home fuel-efficient can boost its value when you want to sell it. 
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