Double Savings

Kiplinger's Personal Finance Magazine, Sept, 2001 by Kimberly Lankford, Kathy Jones

ENERGY | Rising power prices also hike the REWARD FOR CONSERVATION.

WITH energy costing the average U.S. household more than $1,200 per year--and as much as $2,000 to $3,000 to run a big home in an expensive market--strategies to conserve power can pay off big. And conservation no longer means shivering in the dark, taking a lukewarm shower or saving pennies at a time by turning off lights. Now you can save several hundred dollars without sacrificing comfort.

"Over the past 25 years, so many technologies have been developed that the idea of sitting around being cold and conserving is outdated," says Mark Hopkins, vice-president of the Alliance to Save Energy, a Washington, D.C.-based coalition of government, business and consumer groups. "People get an excellent return on their investment through energy efficiency."

For example, replacing a furnace and central air conditioner with new, high-efficiency model's can cut your heating and cooling bills by 30% or more. A new refrigerator uses about 75% less electricity than one built before 1980. Some California utilities will even haul away your old refrigerator and pay you $35 to make the switch.

But you don't have to replace major systems to save. Consider these inexpensive strategies:

Install a programmable thermostat to raise (or lower) the temperature while you're sleeping or at work. You will save about 3% on your energy bill for each degree you give up and quickly recoup the $100 to $150 you paid for the thermostat.

Increase the efficiency of your heating and air-conditioning systems. Have the ducts cleaned, caulk leaky windows, and take steps to fill other gaps. You may be paying a ton of money to cool or heat the outdoors.

Replace light bulbs with compact fluorescents. They cost a bit more but use 75% less energy than regular bulbs and last ten times as long. "You'll save $30 to $40 over the life of the bulb," says Hopkins.

Torch your halogen torchiere. At 20 bucks or so, those tall, metal floor lamps may seem cheap, but they cost as much per year to run as to buy, says Jennifer Thorne, co-author of the American Council for an Energy Efficient Economy's Consumer Guide to Home Energy Savings ($8.95 plus $5 shipping; 202-429-0063; www.aceee.org). They're also so hot that they create a fire hazard, and most of the light is wasted on the ceiling. A compact-fluorescent torchiere looks the same, and at about $40 costs only a little more. But a compact-fluorescent torchiere is safer and uses about $4 in electricity a year.

Insulate your water heater. An insulating blanket costs $20 and will pay for itself in a year or less by reducing the heat lost through the tank's walls by 25% to 40%.

Put your computer to sleep. The sleep function cuts energy use by 90% when the computer is idle--almost as much as shutting the thing off.

Buy energy efficiency. Look for the Energy Star label (www.energystar.gov) when buying new appliances. It identifies appliances that tend to be 30% more energy efficient than standard models. A certified washing machine, for example, could save you $90 a year in energy and water costs.

Get paid to save. This summer, electric companies in California offered a 20% rebate to customers who used 20% less electricity in June through September than they did last year. Utilities in New York offered $75 to anyone who replaced an energy-hogging window air conditioner with an Energy Star model. Keep your eyes out for similar rewards.

Consider an energy audit. Your gas or electric utility may offer a free or low-cost walk-through inspection of your home to pinpoint potential savings. Or you can conduct your own audit with the Alliance to Save Energy's Home Energy Checkup (www.ase.org/checkup/home). K -- Reporter: KATHY JONES