Save Money on Electricity and Natural Gas

When monopolies are broken up, companies compete for customers. The deregulation of the energy markets in several states has allowed electricity and natural gas companies to start competing for customers. In a free market society, this competition leads to lower prices and better service. In addition to providing lower prices, some companies have referral programs that allow customers to make money or earn free rewards for gathering other customers (more on this later).

In Texas, much of the state is open to electricity company competition. Many companies compete for consumers business, but there are only a few that are widely available or openly accept customers. These include TXU, Reliant Energy, and Ambit Energy. All of the choices available to Texas Electricity customers can be viewed at www.powertochoose.org. One key factor is to look at the cancellation policy if you go with a contract plan. These penalties can be hundreds of dollars. Many companies offer month to month plans but the rate is usually higher than contract prices. One of the lowest rates for a month to month plan is offered by Ambit Energy. New York is partially deregulated and Illinois will soon offer natural gas customers a choice. Ambit Energy also serves these 2 markets with great rates and free bonuses.

As with any important decision, it is important to consider all your options before making a decision. Consider whether a contract is right for you or if month to month plans offer the freedom you desire. In the end, a little research goes a long ways.

Regardless of how much you pay for energy, you are going to want to reduce the price you pay. Listed below are a few ways to save energy.

• Turn off lights and appliances when not being used
• Use flourescent lights instead of incandescent bulbs
• Buy energy efficient appliances (check out a great article on appliances and more)
• Make sure your attic is properly insulated
• Replace old, poorly insulated windows
• Winterize your windows and doors with insulating film. Check out the section on windows below for more ideas!
• Change your furnace and AC filters frequently
• Clean your AC unit
• Use a programmable thermostat to reduce heat or AC when not needed. Check out a great article about saving energy this way.
• Turn off your heat or AC when on vacation (or adjust it to temperatures higher or lower than you need it when you are home).
• Consider purchasing a tankless water heater
• Put a timer on your hot water heater to turn it off when you don't need to keep water hot (ie. the middle of the night)
• Turn off your water heater when you are not home
• If you own a pool or hot tub, run the filter as little as possible and still keep the the pool or hot tub clean

Assuming a $.12 kWh rate which is pretty common for the United States, here is what you are spending on electricity. The prices are approximate because every appliance is slightly different, but these estimates are really close.

• A 100 Watt Light Bulb used 6 hours a day costs $2.20 for a month.
• A microwave used 20 minutes per day costs $1.40 for a month.
• A range top stove used 2 hours per day costs $7.20 a month.
• A new refrigerator which is used 24 hours a day costs $6.80 a month.
• An old refrigerator (before 1988) used 24 hours per day costs $16.00 a month.
• A clothes dryer used for 8 loads per week costs $8.50 a month.
• A washing machine used for 8 loads per week costs $1.00 a month.
• A 26" color TV watched 4 hours a day costs $2.90 a month.
• A computer used 3 hours a day costs $2.56 a month.

Look at the cost of a 100 watt bulb for 6 hours a day and think about how long extra lights are left on in your house. Also look at the computer. An hour a day equals about a dollar a month so if you leave your computer on 24/7 you probably throw away $20 a month. Between these 2 items, you could easily save $40 or $50 a month without spending a penny and never notice the difference.

One of the greatest things about energy deregulation is that it has opened up the door for new companies to provide services. Several companies have started business using a network marketing advertising plan instead of the traditional media advertising plan. Instead of spending money on billboards, TV ads, and other traditional advertising mediums, these companies encourage their customers to make personal recommendations. When you recommend the company to your friends and they sign up, you get a bonus of some sort. Sometimes it is money off your bill. Sometimes it is a free vacation.

Some of the companies go even further. They allow people to sign up and become independent marketing consultatants. This can be a great home business that costs almost nothing to start. Then you can make money by helping friends and family save money. They will thank you and the energy company will pay you. You can even sign up under yourself and get paid back on your own energy bill. Ambit Energy also has one of these programs and the rewards can be quite substantial. There is a quick Ambit Energy video on YouTube that gives a quick overview.

Just like with choosing your energy provider, it is important to investigate all your choices before making a decision. A little research goes a long ways.

There are many quick and easy things you can do to help save energy loss through your windows. Below are just a few. Before you start trying to fix things though, take a walk around your house and see what needs to be done. Bring a notebook and pencil with you so you can write down what you need. This will include window sizes for, materials needed, etc.

• Check the caulk around your windows. Over time caulk will crack and needs to be replaced. Just scrape it out and apply new caulk. For just a couple bucks, you can eliminate all kinds of nasty drafts.
• If there are still drafts after replacing cracked caulk, you may have some gaps between your window and the window frame. This can often be fixed by taking off the window trim on the inside of your house and filling in gaps with a foam type sealant. There are many brands of this available including Window & Door Foam
• Install storm windows. The concept is to create an insulating air layer in the window. New windows have multiple panes of glass to accomplish this. If your windows are older, you can still get the insulating effect of multiple panes of glass. There are several different kinds of storm windows you can purchase. The simplest is a heat shrinking plastic that is applied using a 2 sided tape or strips with nails. Easy to use, but temporary. The other end is purchasing and installing actual storm windows outside of your existing window. This is cheaper than replacing windows and can have a very positive effect. In between there are several options of sturdier, temporary storm windows that can meet your needs.
• One last simple idea is to take control of the sun. I know it sounds impressive, but it really is very easy. The concept is to keep sun rays and heat out of your house during the summer and let in the sun light during the winter. To block the heat, close blinds, install shutters that can be closed, or landscape to block the sun. Focus on the windows that get the most direct sunlight. During the winter, make sure your windows let in all the free energy the sun wants to give you. Make sure curtains and blinds are open. If possible trim back any trees or bushes that are blocking the sun.

If you follow these few energy savings ideas, you should notice a real difference in your energy bills!

If you are really serious about saving money on your energy bill and proving it to the world, you can get your house rated. The Residential Energy Services Network (RESNET) administers a rating program and certifies inspectors across the country.

Basically, you hire the inspector to come out and rate your house. They will go through your windows, insulation, and other things that relate to the energy efficiency of your home. They will also recommend improvements and what those improvements will mean to you and your energy bill. If your house meets Energy Star standards, you may be able to get tax credits, qualify for sepcial loans, and drastically increase the value or appeal of your house when it is time to sell.

If your serious about saving energy, you may want to look into this program.