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May 07, 2008 -- Surviving this summer's coming spike in electricity prices

CLARKONOMICS: The price of electricity is set to rise over the summer, especially in warmer climates. That's due in part to spikes in the price of natural gas and coal, which are both used by power providers to generate electricity.

So are you a sitting duck? No way, not any day. Clark thinks about the example of California. State residents suffered greatly in the '90s from illegal activity in the regulation of energy prices. So they retro-fitted their homes and turned up the thermostat. Those actions led to long-term benefits in lessened consumption.

Here's how you can prepare for the coming electricity price crunch:

• If you have an attic, be sure to insulate it. You can either pay a professional to do blown-in insulation or do it yourself with the rolls. Be sure to wear proper gloves and a mask if you do the latter.

• Sweat a little to save a lot. Bump up the temperature and use a setback thermostat -- or closely monitor temperatures yourself.

• Don't change your windows thinking that you'll get a payback; caulk them instead. Weather-stripping will also make a big difference.

• Install CFL bulbs. Every CFL bulb you put in will save $30 to $50 over the lifetime of the bulb. LED bulbs promise even greater savings, but they aren't yet ready for home use. You may, however, see LED bulbs being used in traffic lights right now.


Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Insulated windows
    We have insulated our attic, but the real difference I have noticed instantly was when I insulated our windows. I used Reflectix (you can buy it in rolls at home depot), cut to size to our windows. A little fashion conscience, I used decorative fabric to cover this with so when you're on the outside it just looks like a roman shade. This has caused a big reduction in our home comfort.
  • Tankless Hot Water Heaters
    I have a 2-story townhome (with 2-1/2 baths) & live alone. My condo has about 1,300 sq. ft.

    My gas water heater needs to be replaced & I am considering getting an electric tankless water heater.

    I have recently retired & need to reduce my expenses.

    I would be grateful if you can advise me.

    Thanks much!

    Faye Norris
  • Compact Fluorescent Lights
    Everything I read talks about the energy savings from Compact Fluorescent Bulbs (CFB). I bought some recently manufactured by Feit. They were listed as equivalent to 100watts of incandescent lighting, only using 23 watts and drawing 380 Milliamps!. This is fine, but I decided I wanted to measure exactly how much current they really drew! I measured the draw from a regular 100 watt bulb and got 850mA, and for a 30 watt bulb, I got 260mA. I little simple arithmetic implied that I should get a reading of about 200 for my 23 watt CFB! Instead I got 750mA!
    This implies that there IS ALMOST NO SAVINGS! I had another CPB which was not marked for its equivalence to regular bulbs but was listed as 18watts—it drew 340mA! It was also made by Feit. An 18watt Phillips CFB drew 460mA! What am I doing wrong?
  • Windows and Savings
    While windows "can" have a significant effect on comfort, and tend to look very nice, they will NEVER pay you back on your power bill. Working in residential conservation for utilities in the northwest I have seen hundred of window jobs and also have access to their electrical usage. I have yet to see a measurable decline in a customers usage after a window install. However, usage decrease after a full insulation job is unmistakable.

    As a final note, please please please get multiple bids if you thinking about replacing your windows. And go with a contractor from your area. You will literally save thousands of dollars and someone will return your phone call if you have questions or problems later. If you fall for one of the door-to-door salespeople you will NEVER see you money again and will have no control over who they send to your house or what quality of work they do.
  • Window Replacement
    I actually work in the replacement window industry and I happen to know for a fact that some replacement windows, depending on how energy efficient they are and also depending on the total job cost, will most definetly pay you back in spades. I personally have done extensive research on this matter and have had numerous customers call to inform me that their emergy bills had been reduced dramatically, many have seen a 35% or more drop in energy cost. There is also extensive research done by several firms and magazines to try and determine how much property value can be recouped at resell and most agree that a midrange vinyl replacement window should recoupe around 86% at resell. I just dont understand where you got your data or if your comments on replacement windows were only based on 1 type, price, or efficiency of window but before you just throw comments out there that suggest that nobody can get a payback from replacing their windows, I sure wish you would do more research. Comments like these can do tremendous harm to the replacement window industry when made by a person with such a huge influence in Atlanta. I hope you will research this issue more and if you see fit, maybe revise the advice that was given.
  • rising electric costs
    Yes, it is good to insulate the attic well, but it CAN be overdone. It is easy to over-insulate the attic and blowin insulation that actually blocks the vents in the eaves and causes the attic to "not breathe". This makes for one HOT attic which the air conditioner works harder to cool! Let people know about this energy robber! Thanks.
  • CFLs
    I was wondering if CFLs really save that much. I started using CFLs and posted the date near the light and found that it didn't even last a year! The box says it's supposed to last seven years!!
  • Blasted CFL bulbs are no savings for me
    I don't believe I'm saving any money with CFL bulbs. We have toggle plates instead of light switches. If I accidently turn the light on and off quickly the CFL bulbs burn out! and they're only months old!!
  • CFL disposal
    I hate CFLs. Most aren't dimmable and put out too much light for many of my applications even when dimmed. Special care needs to be taken when cleaning up broken bulbs also. The main problem I have with them is that the disposal issue hasn't been addressed. This makes makes them an environmental time bomb. The general public isn't being made aware they they should *not* be throw away but must be recycled. If we don't put disposal procedures in place now, a few years down the line when they do begin to fail we'll have a real problem. Disposal costs will be passed down to the end user.
  • LEDs at IKEA
    IKEA now sells two lines of LED lamps. One that has a 29.95 model that attaches to the wall, a 39.95 table lamp, and a 59.95 floor lamp. I have two and they are great for reading.
  • led bulbs
    You can order L E D Bulbs from the ccrane company. just do the ccrane.com thing during a online search.
  • CFL
    Mercury has existed in standard Flourescent bulbs for years, the CFL is no different.

    Don't buy CFL Spots at Lowes. I put recessed lighting in my kitchen, and they only lasted 2-6 months. I got others from Walmart and they're still working.

    I bought a 12 pack of CFL's 3 years ago for $19, so they're not too costly. I replaced about 20 100W bulbs in the house that we bought. All of the 100W bulbs had turned black from the heat they generate. In some places a 40W bulb was actually putting out more light than the 100.

    Ginny, I don't know what you're talking about. Every CFL bulb I have, has more output than any standard bulb. The only thing I can think of, is the spot bulbs do take some time to warm up, but once they have, are very bright.

    Also, if you're going to be out of the room for more than a minute. TURN THE LIGHT OFF (This will save you energy, but it will cause the bulb to have a shorter life). Unless you use LED, which will probably last forever. I saw them do this on Mythbusters, the LED was the only light able to withstand turn on/off repetitively.
  • CFL
    I think this a great idea, I have seen savings from it over the years.
    It's also a very good idea to start using solar energy if you can.
  • LED Lights
    Clark,there's an American company that has developed an LED light bulbcalled the " GeoBulb " LED bulb that is guaranteed for three years and the warranty is valld even if used 24 hours a day. The company is known for radios and antennas. The company is C. Crane, and are located in Fortuna Ca. They also have a website :ccrane.com . A little expensive [ $ 119.95 EACH ] if you do the whole house.
  • life insurance for your baby
    Hi Clark,
    Thank you for your show.
    We purchased insurance for our baby from AAl, now Thrivent. He is now 36, married and has 3 little girls under the age of 6. He was diagnosed with ulcerative colitis as a junior in high school. He is now able to increase the value of the policy occasionally when the "window" of the policy allows. If we had not done, as a baby, this he would not be able to purchase insurance due to his illness. I am thankful for this policy, and he is also.
    I have learned so much, and am a great fan.
    Sincerely,
    Connie
  • Total Hpme Savings
    Planning for total savings is the only way. Partial insulation or CFL's are only a small part of energy savings. Shade the west side and air conditioning unit. Try UV filtring glass, total insulation, foam and foil under roofing, timed thermostats, smaller light fixtures, tankless water heaters, humidity regulators, and much more. Make it a total and permanant solution when you do make adjustments and changes.
  • CFL bulbs
    Were do you think Mercury comes from? That's right, Mother earth. I throw my CFL bulbs in the trash. Sort of like taking the Mercury from one location and putting it in another.
  • CFL bulbs
    CFL bulbs are filled with mercury laden gas. They are a nightmare for disposal without releasing the mercury into the environment. I'm really shocked that you are recommending them.
  • Insurance
    My husband passed away 5-5-08. He had insurance with his company, but they have gone ut of business. A&M Corp.
    How can I find this incurance? Also I was to draw on his pensionbut cannot find out where . Met Life has the retirement.
  • cfl bulbs
    I can not find a high enough wattage in the cfl bulb to give a bright light to compare to a 150 Watt bulb
  • electricity saving
    tell me something we don't know ...Dah
  • CFL Bulbs
    I understand that CFL bulbs contain mercury. If you drop one you are supposed to clear the area and treat it as a toxin. THey also do not last as long as they say. Muy father just bought some and they burned out two years. What is the truth behind these bulbs?
  • Thermostate
    If you are out of your house 8 hours or more, raise you thermostat three to five degrees above your normal setting in the summer. Once you start air conditioning season in humid areas, never turn off you air conditioners.
  • Surviving summer's spike in electric costs
    I've lowered my electric bill year round by shutting off (unplugging) the entertainment system & computer system &
    cellular jacks after use.
  • bulbs
    clark, it would be helpful if you defined and described CFL bulbs, so i would know what you are talking about
  • Burial Cost
    Assuming nothing, what is the absolute cheapest burial that the law will allow?
  • Electic Bill
    What do you think about the flat rate bill? I am on the budget bill but I think I'm going to get zipped either. Help
  • CFL bulbs and heat
    CFL bulbs are also good in that they don't run as hot as incadensents, so you won't be jacking up the temp in your house to make your AC work harder to bring it down.

    My house is definitely cooler when I replaced some 100W bulbs with equivalent CFL's (and my 300W torchiere lamp to a flourescent bulb lamp that is almost as bright as the torchiere lamp but doesn't use as much energy and doesn't generate as much heat).
  • LED bulb alternative
    LEDs are in fact ready (although pricey). Go to www.ccrane.com for LED bulbs.
  • LED's are available for home use!
    LED's are indeed available for use in the home! they are pricier up front, but still save a lot of money over the life of the bulb. look online for places to purchase, they are difficult to find in most stores.
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