Angles
By Michael DeBerdine III
What the experts say about winter energy costs— and how you can save.
W
inter is here for home owners and commercial users. For many of us, that spurs not-so-fond memories of paying our heating bills during last year’s “Polar Vortex.” With a few months left in the heating season, there’s still time to gain a firmer grasp on what we can expect out of this winter and some strategies for serious saving. In my role, I oversee a team that manages supply of heating oil, propane, and natural gas for the Jerome H. Rhoads companies, which include E.G. Smith Inc. and Boyertown Oil & Propane. As part of that year-round job, our team continuously reviews energy research, forecasts, regional usage data, and other information. This article shares some of that data with you—and explains how it can be useful in managing your heating costs. In addition, you’ll find a range of practical tips on how to keep more money in your wallet this winter.
The Data, The Weather, & Your Heating Fuel
In October, the National Oceanic and Atmospheric Administration issued its official forecast for the season. The good news: there is an equal chance temperatures will be above or below normal this year. That sounds pretty noncommittal; but, it means that the NOAA believes winter temperatures will be closer to average this year—a big improvement over last winter. The U.S. Energy Information Administration (EIA) also issued its Winter Outlook in October—a big deal in our industry. The media tended to focus on the good news from that report; one reporter noted that costs are expected to be lower this winter, “especially for anyone who relies on home heating oil.” In fact, the EIA predicts that oil heat users will spend 15% less this winter than last, and propane users will spend 13% less. Of course, those savings are averages that vary from region to region depending on several variables; but, still: great news for folks who spent more on heating costs last year. While this winter looks to be better, both in terms of projected weather and fuels costs, home heating is still a major household expense. For example, while oil heat customers may save 15%, they may still spend $1,500, $2,000, or more on heat. Plus, if the 26
AT HOME IN BERKs DECEMBER 2014
winter is colder than forecast, the EIA’s projected savings could be significantly reduced. Regardless of what the remainder of winter brings our way, there are still some things you can do to make your home heating system run more efficiently.
Heat Smarter & Save
No matter what type of fuel you use to heat your home, there are strategies that can save you big. HEATING OIL: About 30% of the homes in our region use oil heat. These home owners should incorporate regular annual maintenance into their regimen. Why? Because it keeps the system operating at peak efficiency, which can lower oil usage by 10% or more. That adds up quickly, even for the average user. Research also shows that regular maintenance can extend the life of an oil heat system by up to 50%. Another way to save: review available “pre-buy” or “capped price” programs. With capped pricing, your cost-per-gallon will never go above a set level. One key: some suppliers, including E.G. Smith Inc. and Boyertown Oil & Propane, will give you the lower cost-per-gallon if heating oil prices wind up falling during the winter. Read the fine print to be sure your provider offers the same guarantee. PROPANE: Based on the EIA predictions, the average home owner using propane will see a decrease of more than $300 from heating costs this winter. Still, a winter’s worth of propane is a significant household expense. Shop pricing among area providers; but, when you do, be sure to ask whether they had problems delivering propane to customers last winter. You want propane from a company that has access to supply and professional management. NATURAL GAS: With temperatures expected to return to closer-to-normal levels this winter, the EIA projects a 10% decline in residential natural gas consumption. While natural gas homes