Clark has discussed in the past how banks are cutting or reducing home equity lines of credit (HELOC) because they're frightened of default. But the problem is apparently beginning to accelerate.

The consumer champ read one outrageous Chicago Tribune story that reported HELOCs are being cut right after they're issued in some cases! A circumstance like this speaks to the problem of redlining by geographic location or zip code, which is illegal.

Banks are required to do an individual assessment of your house. However, they now say they're doing individualized computer assessments, which sounds like something out of a conspiracy theory to Clark.

If you anticipate a need to draw on your HELOC, get the money out now and deposit it at another financial institution. Be sure to move all other accounts out of there too; you only want to have a HELOC at a bank, no other assets.

That prevents the bank from seizing any funds you may have on deposit if they decide to shut off your line of credit and call the loan due.

Thinking about doing a home renovation? There's never been a better time to hire a contractor.

During the peak of the housing market, contractors had a certain disregard for the customer simply because they were swamped with jobs. Very often, they would say they'd show up at a certain time and then never materialize. Now that coin has flipped.

The old rule of thumb about expecting a job to run twice as long and cost twice as much as initially quoted is out the window. Today, your job is likely to finish on or before schedule because all the subs that a contractor might use are available and waiting for work.

Clark's wife recently had a small-to-moderate home improvement done, and the contractor wanted to start the very next day after she called to offer him the job! The whole job would have taken two months in the past. Now it was done in a little more than two weeks.

Economies go in cycles, and the housing market went from being turbo-overheated to being frozen in the tundra. That means materials come cheaper, labor comes cheaper and the quality of workmanship is better because people are hungry for work.

Ironically, those who can afford to do renovations are not doing them because there's so little payback. For every renovation dollar you spend, you're lucky if you get 50 cents back in resale value. But that misses the point of a renovation; you do it because it will improve your quality of life at home, not because you're expecting return on investment.

MONEY-SAVING MOMENT: Wells Fargo is planning to raise interest rates on credit card customers across the board by November 30. They're rushing through an increase before a new federal ban on raising rates on existing balances goes into effect December 1.

So what does this mean to you?

Well, the giant monster mega-bank was a beneficiary of bailout money and your reward is that they boost your interest rate?! Your assignment is to reduce the amount of money you owe on credit cards. Go join a credit union and get one of their credit cards to do a balance transfer if you must. At least the credit unions are not pulling all these gimmicks like Wells Fargo.

And we have one more announcement for Wells Fargo customers. The San Francisco Chronicle reports the bank is doing blanket reductions in home-equity lines of credit (HELOCs) without doing individual property assessments.

(Editor's note: Wells Fargo gave us the following statement: "The fact is we conduct case-by-case reviews based on a variety of possible factors such as credit scores, debt levels, payment history, property value changes, etc. to determine if a customer’s home equity line of credit limit is in line with their financial condition. We also encourage our customers to call us if they believe we made our decision on incorrect or incomplete information.")

This is reportedly happening to 3.6 million people.

(Editor's note: Wells Fargo maintains the following: "We serve a total of 2.6 million home equity households across the country. And the majority of our customers have not had their lines reduced or restricted.")

If you are in midst of using your Wells Fargo HELOC, Clark advises you to draw it down right away and deposit it at another financial institution so they can't automatically claw it back from your account.

We are three years away from traditional incandescent bulbs being banned in the United States. As of Sept. 1, new European Union rules made it illegal for many Europeans to buy a traditional bulb -- except for those that were still on the shelf.

Will the new crime du jour become smuggling traditional bulbs into the EU?

The International Herald Tribune reports that Germans were panicked about the Sept. 1 regulation and have been stockpiling traditional bulbs. Meanwhile, other European countries reacted to the ban with a shrug of the shoulders. So much of our behaviors and reactions are culturally influenced!

Compact fluorescent lights are one of the new options for lighting available in the United States. CFLs use a quarter of the energy of traditional bulbs and can put $80/year back in your pocket.

One reason people haven't embraced CFLs, however, is the fuss over their mercury content. But it's negligible compared to a traditional thermometer -- something in the range of one-four hundredth. You can also recycle CFLs at Home Depot stores across the country.

When traditional bulbs are banned stateside, halogens may be good compromise for some people.

Meanwhile, in totally unrelated news, Clark's 10-year-old daughter had possibly come down with swine flu, though it wasn't officially diagnosed. She had fever as high as 102.6 degrees, chills, nausea, cough, lethargy and didn't want fluids.

Yet it was nothing to panic over. She made a full recovery. Those who have contracted the H1N1 strain vs. the number who have actually died from it indicate that this is a mild strain compared to other influenza outbreaks. Of course, Clark realizes that's little comfort if you have actually lost someone to swine flu.

But he wants to emphasize that swine flu is generally not a death sentence.

Elderly people are one group you might expect to contract H1N1 that generally hasn't. The thinking now is that they may have been exposed to a similar flu early in life and have some level of immunity.

Pregnant women, however, should not take this outbreak lightly. The warnings from the CDC are very clear on this.

Conservatives were all upset when they learned of new federal energy requirements coming in 2012. Articles were written anticipating the death of the traditional Edison incandescent bulb and predicting that CFLs and LEDs would rule the market. Even Clark was thrown for a loop on this one. He too was among the many predicting the death of the Edison bulb.

But instead, the opposite has happened. Edison bulbs are making a comeback as researchers develop more-efficient designs, according to The New York Times.

Reducing the amount of energy we use as a nation is a smart play because it frees up resources to create more economic growth.

When it comes to autos, Clark wants to note one shocker about the increased fuel economy standards required by the government. He believes they will actually result in people driving more frequently as mpg goes up and the effective cost of driving goes down.

Two new developments highlight how we as a country are finally getting on the ball with energy efficiency.

First, there are new lighting standards coming that mean traditional incandescent bulbs will be phased out. The traditional Edison bulb was miraculous in its time, but it's a real energy hog. In addition, recessed lighting will have to become more efficient, as will fluorescent tube lighting.

(Editor's note: There are diverging opinions on the fate of the Edison bulb. The New York Times reports that new designs for the traditional incandescent can allow it to be up to 30% more efficient than older counterparts.)

Clark has CFLs all over house, plus he's trying out four LED lights. The early LEDs are proving to be as poor as his early CFLs were -- that's the danger of being an early adopter. Some of his first CFLs installed in 1998 take a full 2 minutes to warm up from dim light to interrogation-style brightness.

Second, the feds are setting up an expedited procedure to have sun farms throughout the Southwest producing solar energy. One of the longstanding problems to getting these going was the "not in my backyard" mentality. But the feds are now dedicating their own land for the farms. The goal is to have 13 sun farms under construction by next year.

Clark first saw solar energy in the Middle East during the late '70s. Since then, new developments with rotating solar receptors to catch the direct path of the sun have made it an even smarter idea.

As the consumer champ has said many times before, he doesn't care about the environmental angle of becoming energy efficient. He's just interested in our national defense as we seek to reduce our dependence on foreign oil.

While much of the world has embraced alternative forms of energy, we're still playing catch-up in America.

The problem for homeowners has been figuring out how to implement technologies like solar, wind and geo-thermal. You can't exactly just call around for quotes.

That's where the power of the Internet comes in.

Sungevity.com allows you to enter your street address and get a guaranteed quote on installation of a home solar system. The assessment is done by satellite mapping, so no visit to your home is required. (Editor's note: This service may only be available in certain areas of the country.)

In addition, there's federal and state money available as part of the stimulus law to install alternative energy at your home or business. Clark predicts this will be a real growth area for entrepreneurs who can do energy-efficient retro-fitting on homes.

For several years, Clark has been explaining how his beloved CFLs (compact fluorescent lights) are really just a transitional technology until we get to LEDs (light-emitting diodes).

The consumer champ being the pioneer he is, he's already been toying around with LEDs around the house. In fact, he recently installed an LED about his elliptical glider.

Turns out the light is so poor, he can't even read a newspaper while he works out!

Obviously, LEDs are not ready for prime-time just yet, but they promise to deliver great light down the road at a cost to operate that's even cheaper than CFLs. And they won't have any of the mercury disposal issues that come with CFLs. (Home Depot will actually recycle your CFLs for free no matter where you bought them.)

The traditional incandescent bulb is likely to be extinct in about 2 years, thanks to new energy-efficiency requirements for lights. Yet The New York Times recently reported that 80% of Americans have no idea about the phase-out.

So Clark's message is hang tight on the LEDs and continue to go with the CFLs at this point. Each CFL will save you about $60 or $70 over the life of the bulb.

Meanwhile, Clark will be removing the LED above his elliptical and replacing it with a CFL so he can get back to reading!

CLARKONOMICS: A recent report in The Washington Post revealed how states are getting an unexpected windfall from construction jobs they've bid out coming in under budget.

Construction firms that typically seek state contracts are in a deep depression and there's fierce competition in the industry.

Likewise, the residential construction business is also ailing. So if you are in a position to afford it, this is a great opportunity for you to do a renovation on your home; have an addition installed on your house; or have your home retro-fitted for energy purposes.

During the peak of the real estate market, there was a certain disregard for the customer. Very often, contractors would say they'd show up at a certain time and then never materialize. Now that coin has flipped.

The old rule of thumb about expecting a job to run twice as long and cost twice as much as initially quoted is out the window. Today, your job is likely to finish on or before schedule because all the subs that a contractor might use are available and waiting for work.

So often as Clark is out and about, he's asked by people where the job opportunities are right now. Well, here's a word of advice for construction workers who may be out of work.

There's a new job boom coming with the retro-fitting of commercial and residential real estate to bring it up to new energy-efficiency standards. The boom is being fueled in part by some new tax credits in the stimulus package.

Meanwhile, USA TODAY reports that a number of states are now requiring energy-efficient retrofitting or imposing new green construction standards on all buildings. For example, Hawaii is just one state where solar water heaters will become the norm in all new construction.

In other career news, Clark is doing a temporary about-face when it comes to his enthusiasm for going to school to become a nurse.

Nursing has long been considered a certain bet in the career world. But new graduates are finding they have to compete against seasoned nurses. Many veterans are returning to the work force now that their husbands have been laid off. After all, it is men who have borne most of the brunt of the slowing economy when it comes to layoffs.

(Editor's note: This is precisely why these times are being jokingly called a "hecession" instead of a "recession").

Of course, the difficulties that nursing graduates are encountering in finding a job today will only be temporary. Life expectancy standards in our society continue marching on, and that means healthcare professionals will always be needed to care for an aging population.

Clark has frequently spoken out against the $787 billion stimulus effort, but from time to time he talks about some of its provisions that can actually benefit you.

These include some very appealing tax credits that you can get for making your home more energy efficient.

First, there's a $1,500 tax credit in place for this year and next that applies to insulation for your doors, windows, roof, HVAC, water heater, etc.

Second, there a special credit in place for the next 7 years -- with no dollar limit -- where the federal government will cover 30% of the cost for installation of geo-thermal, solar or wind-energy technology.

The consumer champ himself is considering installing a solar water heater at his home. We'll let you know how it goes.

Now may be the perfect time to install solar paneling at your home, according to a recent USA TODAY report. There's an oversupply of panels coupled with a severe drop in demand.

When people think of solar energy in the United States, they typically think of the Southwest -- California, Nevada and Arizona. But colder states like New Jersey have also been instrumental in the explosion of solar energy in our nation.

There are now newly revised federal tax credits to help defray the costs of installing solar panels at your home. The old cap on that tax credit is now gone. That alone should be a real boon to solar energy adoption.

Clark is exploring the idea of solar panels for his home. He loves the tax incentive, plus the long-term incentive of reducing what he pays to heat hot water.

Finally, some Southwestern solar plants are being used to actually generate electricity. It's not yet clear, however, if they will prove economically viable.

Clark is something of a pioneer when it comes to jumping on home lighting trends. He was an early adopter of CFLs (compact fluorescent lights) and gladly suffered through early product glitches because the cost of operation was only one-fourth that of a traditional bulb.

Common criticisms of early CFLs included that the lights took too long to come on when you flipped the switch; that they contained (and still do) trace amounts of mercury; and that the light they cast made you look sickly!

But the consumer champ has long said that CFLs would only be a transitional technology until we get to LEDs (light-emitting diodes). LEDs use 6% of the electricity used by a traditional bulb and last from 15 years to a lifetime. They cost a fortune at the moment -- $7 per bulb -- and Clark has bought some multipacks at Sam's Club. Thankfully, the cost of operation is 3 cents per month; that's just 38 cents annually!

The real problem with LEDs in Clark's opinion? The light they cast is a way out there sort of bluish tint!

With the building market in a bona fide depression, those who earn their living in construction are really hurting for work. That makes this an ideal time to start a remodeling project if you've been putting it off at your house.

It may sound nuts to remodel at a time when home values are plummeting. But it's really not when you consider the potential savings. Don't, however, make home improvements with an eye to achieving a better resale value; you'll just end up disappointed.

The December issue of Money magazine reports that a kitchen remodeling will only net you 76 cents on a dollar when you resell. A bathroom renovation only brings in 75 cents on the dollar. Those have historically been considered the 2 strongest remodeling projects -- and even then you lose a quarter on every dollar.

The only reason to do a remodeling project is to increase your enjoyment of the home where you live.

Contractors are now willing to work for less and actually show up when they say they will! Material costs are cheaper too. Clark has a friend who has owned a plot of land for 11 years. He's only building a house on it right now because of the favorable contractor bids he received.

We in America have historically enjoyed cheap energy prices. Of course that's all reversed now. There's a lot of evidence to suggest that energy could be costly in the future. While people are clamoring about finding more supply, what we really need to do is reduce our demand for energy.

One way to do that is build efficient structures. Architects who focus on "green" building can create savings of about 30% to 50% for the end user.

One American city that knows all about energy costs is Houston. In the heart of oil country, they're requiring commercial builders to construct energy-efficient properties. They're also trying to put those same standards on residential builders. The pushback from the residential sector has been intense so far. Montgomery County in Maryland is one place that has already successfully established mandatory green building standards.

Clark applauds Houston's efforts and hopes the city extends the standards to new residential homes. This can make a huge difference in energy costs. It's not about whether you buy into the idea of global warming or not; the reality is we're spending a fortune on energy. Green building is not about the environment, it's about your wallet.

Hurricane Gustav gave us an eventful few days. New Orleans came out OK for the most part, but other communities which are getting less press suffered greater damage from the storm. Most of the Gulf Coast is doing fine though, and this translates to direct savings for the average consumer. Oil is down almost ten dollars a barrel from pre-Gustav levels. (The marketplace had first priced it up in fear, and now prices are in relief.) The wholesale price of a gallon of gas is $2.70/gallon, a big drop from where they had been recently. The other outstanding news as we enter into fall is that natural gas prices have come down drastically in recent weeks. Around 58% of Americans get winter heat from natural gas, so this will have a big impact for many of you.

Unfortunately, those who heat with home heating oil will have an expensive winter ahead of them. But there are some cheap fixes. If your home isn't airtight, caulk and weather-strip those doors and windows. And you can cut heating costs by about a third with proper attic insulation.

Clark's been receiving a lot of calls from listeners who had HELOCs (home equity line of credit) shut off with no notice -- sometimes in the midst of a renovation!

Now it turns out this practice is illegal. New federal guidelines* have been issued that forbid banks from redlining via zip code, via state or any other blanket method. They are not allowed to arbitrarily shut down HELOCs in a neighborhood where home values are dropping.

If a bank wants to curtail your HELOC, they must look at your house and circumstances on an individual basis. So if you got the squeeze, go talk to your loan officer and get it rectified. They are required to restore your HELOC -- unless they have individual proof for your address or your situation that compelled them to cut it in the first place. Get in there and fight for your rights!

* Note that this is a pdf file.

Clark is excited by the idea of installing fake grass for the purpose of conserving water. Today's fake grass is a far cry from the AstroTurf of yesteryear. In fact, you can't tell today's fake grass isn't the real deal; manufacturers even weave in some decoy weeds!

In Las Vegas, homeowners are actually paid to dig up their yards and convert them to desertscape. The stunner is that the Las Vegas Strip only uses 3% of the city's water. That's because casino owners are good capitalists and have used every possible water-saving technique in their buildings.

The Los Angeles Times now reports that California is offering a similar deal. Golden State homeowners are being encouraged to convert to landscaping that requires less water. But some local municipalities are fining homeowners when they make the switch. Talk about state and local governments working at cross purposes!

This winter heating season is set to be an ugly one for your wallet. Those who use oil to heat their homes will be hardest hit. Oil customers are looking at prices that could be 80% higher than last year! To compound the problem, many folks who use oil are located in the Northeast -- where winters typically last longer.

Now is the time to weatherize your home before the cold comes by weather-stripping doors and windows, insulating your attic, etc. Some people may even want to consider using a wood-burning stove if that's an option.

Natural gas customers, meanwhile, can expect costs to be 15% higher than they were last winter. The good news is that new discoveries of natural gas deposits should lower the price down the road.

There's also been some discussion of liquefied natural gas coming in great supply. The main impediment is the "not in my backyard" mentality. Many Americans don't want more refineries built. But the danger of a NIMBY mentality is that we become prisoners to energy-rich foreign powers.

Clark thinks the ultimate answer lies with alternative energy and conservation.

Isn't it interesting that it looks like lower energy costs will becoming in time for the election? How will that play out? For his money, Clark believes both Obama and McCain are more similar than they are different on energy.

Several states are doing some things that Clark sees as a sign of the times.

Hawaii is banning traditional water heaters in all new construction. The Aloha State is now requiring solar water heaters. While solar water heaters cost about 7 times what a traditional heater does, you can make your money back in a couple of years. This move should save homeowners $50/month on average.

But there's so much more we can do. Clark read a very disturbing story in Business Week that detailed how the coal industry is trying to use political influence to virtually outlaw windmills in the Great Plains states.

We as a nation should not allow dirty money to prevent us from having clean sources of energy.

The Business Week story focused on a Kansas rancher who overcame dirty money to get a windmill operation up and running. Clark salutes this determination to make a change.

Meanwhile, California is putting stickers on cars that provide a smog rating and a global warming rating. Whether you believe in global warming or not, no one can deny that smog exists.

Under the current system, a score of 10 represents the lowest levels of pollution and a score of 1 the highest.

Car manufacturers are obviously not happy about this -- unless they make what are called "super ultra low-emission vehicles." For example, the Honda Civic Hybrid has a smog rating of 9 and a global warming rating of 10.

These stickers are voluntary for now until next January when a law mandating them throughout the Golden State goes into effect.

Clark has long been a big advocate of reducing his electric bill by using compact fluorescent lights in his home. It used to be that Clark installed CFLs in overhead fixtures and his wife put traditional bulbs in all the lamps. But now they're doing almost all CFLs through the house.

They've also done a lot of retrofitting with attic insulation, duct work improvements and weather-stripping around windows and doors. Their energy bill has fallen by about 40%, though complete payback is still several years away.

CFLs are a no-brainer in terms of savings. They cost about $1.10/bulb at the warehouse clubs -- which is still 4 times as much as a traditional bulb. Yet you may save up to $60 over the life of a CFL.

One of the biggest impediments to widespread CFL adoption has been the environmental angle. They're seen as a hazard by some because CFLs contain small amounts of mercury.

Now Home Depot has launched a FREE nationwide CFL recycling program. With safe disposal becoming a reality, Clark can feel good about recommending CFLs!

He is, however, a bit surprised that Wal-Mart or Sam's Club didn't beat Home Depot to the punch. But Home Depot has so many stores that most Americans live within 10 minutes of one, which makes recycling easy.

As Clark has said before, CFLs are just a transitional technology before LEDs (light-emitting diodes) become commonplace in the average American home. LEDs are already showing up in the homes of the ultra rich.

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.

We in America have historically enjoyed cheap energy prices. Of course that's all reversed now. There's a lot of evidence to suggest that energy could be costly in the future. While people are clamoring about finding more supply, what we really need to do is reduce our demand for energy.

One way to do that is build efficient structures. Architects who focus on "green" building can create savings of about 30% to 50% for the end user.

One American city that knows all about energy costs is Houston. In the heart of oil country, they're requiring commercial builders to construct energy-efficient properties. They're also trying to put those same standards on residential builders. The pushback from the residential sector has been intense so far. Montgomery County in Maryland is one place that has already successfully established mandatory green building standards.

Clark applauds Houston's efforts and hopes the city extends the standards to new residential homes. This can make a huge difference in energy costs. It's not about whether you buy into the idea of global warming or not; the reality is we're spending a fortune on energy. Green building is not about the environment, it's about your wallet.

It's time for some toilet talk on The Clark Howard Show, but don't worry, we won't be getting any FCC fines! Clark has wanted to reduce the amount of water he uses at home. So he had his second low-flow toilet put into the house. He went from using 3.5 gallons/flush to 1.1 gallons/flush! Home Depot is running a special in select markets where they'll install a low-flow toilet (starting at around $100) for a $59 fee. In some places, you can get a government rebate if you outfit your home with water-efficient devices. Clark's latest toilet even has 2-buttons: One that delivers a 1.1 gallon/flush and another for 1.6 gallons/flush. Here at the radio studio, they recently installed several waterless urinals. Are you looking for other ways to cut your energy budget at home? Make sure your attic is properly insulated.

Now is a great time for a home renovation project. Business is so slow that contractors who couldn't return calls previously are now begging for work. The whole process is more affordable. However, The Wall Street Journal reports that the payback during resale is not amazing. For example, you can expect to get back about 75 cents on the dollar if you're doing a big kitchen remodel. So try a minor upgrade instead that can freshen up your home and doesn't cost a fortune. But make sure you're doing it for the right reason -- because you and your family will enjoy the results. Don't go chasing a financial reward that's not going to be there.

Of course, having contractors in your home is not enjoyable. Clark's rule of thumb is expect it to run 30 percent over-budget and for it to take 50 percent longer than planned. One word on expense: The more specific you are about what you want to accomplish -- as to the materials, the scope of work -- the more likely you'll be happy. Hiring a contractor is like getting hitched. It's much easier to get into it than it is to get out. And the honeymoon period ends very soon once they're on board. So do thorough reference checks. Ask the contractor's former clients, "Were they on schedule? How much did they go over-budget?" Go see the homes of former customers if possible. If deadlines are important to you, write it into the contract. But in order for that clause to have teeth, you need to stipulate monetary penalties if work runs over-schedule.

During a recent Clark Stinks segment, someone was upset about Clark's recommendation of CFL (compact fluorescent lights) bulbs. Clark jokes that he's surprised his wife would post something about him behind his back! Clark and Lane always go back and forth about the CFLs in their home. The problem is that Clark was an early adopter of CFLs. He bought when they were too expensive and didn't have all the kinks ironed out. So his CFLs emit a yellow-green glow and take a full 90 seconds to fire up from the time you flip the switch!

CFLs only account for about 5 percent of the market today. But they'll continue to be more prominent in people's lives. There's a new federal mandate that requires 35 percent more efficient lighting over the next several years. Meanwhile, there's been some concern about the level of mercury in CFLs. But Clark says it's only a minor amount. You'd practically have to crack open the bulb and inhale to get yourself in trouble! Keep in mind that CFLs are probably only a transitional technology. The next major advance will be LEDs (light-emitting diodes) in the home. Did you see the Times Square ball drop on New Year's Eve? That was all LEDs. LED Xmas lights were also popular this past season because they're much safer and more cost-efficient. But we're still about 5 years away from commercial viability for LED household use.

Much of the country is suffering from either a shortage or a surplus of water. Clark was recently talking to some TV producers looking for a new angle on the drought story in Georgia. He thought we should be focusing on how to reduce our consumption of the existing water supplies, rather than on the fact that there's been too little rain. Clark believes there needs to be more emphasis on greywater systems. These are methods of water conservation that reduce consumption by about 35 to 40 percent. The idea is simple: Water is first used in the household for drinking, washing dishes and showering. It is then partially treated and recycled for landscaping, for use in toilets or whenever there is a need for non-potable water.

Meanwhile, Clark recently read about a high school in North Georgia that's conserving water by replacing water-based urinals with ones that don't use water. The military base where Clark trains as a volunteer state guardsman did this several years ago too. The filters used in waterless urinals are so efficient that there's no odor. In the home, you can install low-flow showerheads that use a blast of air to simulate a strong stream or use water-conserving toilets. Clark's home has a European-designed toilet that conserves water by having two buttons: One for a minor flush and one for a major flush. As Clark says, this is a G-rated show -- so use your imagination to understand when to use which button! As an aside, did you know that the Las Vegas Strip uses only three percent of the water in Nevada? Most of it is being sucked up by home owners trying to have green lawns in the desert. Now there are incentives for home owners to use rocks to landscape their lawns instead of having grass. Once again, the problem is on the consumption side -- not the supply side.

If you filled up at a gas station in the last several weeks, you've probably noticed the price of gas has been zooming up. That's because the price of oil per barrel is nearing a historic high. The most recent trade Clark saw was around $95. But adjusting for inflation, we've seen higher prices in the $101 and $102 range. Clark's economical Scion XB now costs him 9 cents/mile to gas up. One of his coworker friends was recently shocked that he couldn't fill up his huge modified TV station van for $50. Clark's friend thought the gas station was limiting how much gas he could pump, but really he was just getting such little gas for such a high price.

The good news is that gas and oil prices should decline in the future, barring any disasters either manmade or natural. A lot of the recent rises in price have been because of speculators. In fact, the price of a barrel of oil is up $25 over the last two months. Prices will drop once the speculators put their money elsewhere. But in the meantime, those who use home heating oil in the winter will really feel the pinch. The price of home heating oil is directly affected by the price of oil per barrel. So make sure you insulate and weatherize your home to avoid getting financially burned this winter. The average house using home heating oil is looking at $2,200 in winter heating expenses versus $900 dollars just two years ago.

American companies have done a great job reducing their energy consumption over the last decade. In most cases, they don't necessarily do so to be good corporate citizens; businesses do it because it saves them money. But individuals have great difficulty implementing changes that are easy for businesses. There's a real disconnect there. Clark recalls doing weatherization contract work in the '70s during the second energy crisis. Today people have energy audits of their home and don't do anything with the knowledge they get. Partly this is because of human nature. We like immediate gratification and find it hard to lay out cash for an energy-smart payoff down the road. Companies are lucky enough to be eligible for tax credits when they reduce their energy consumption. Now one California community wants to offer free solar power to homeowners up front. The idea is that the government will absorb the costly initial expense and homeowners can pay it back over 20 years. Likewise, one Atlanta suburb that's facing drought is considering having the government pay to put water-efficient appliances in homes. Homeowners can then pay the government back down the road. Clark hasn't yet made up his mind about these two proposals. We have a longstanding tradition of subsidizing corporations when they want to become energy efficient, so should we do it for individuals too? The reality is that people won't get it done when left on their own.

You've probably been hearing a lot about fire-safety awareness with Fire Prevention Week recently upon us. Household fires tend to be more prevalent in the fall months. But people often zone out when they hear fire-safety info. That's a bad idea. Clark and his wife have a fire drill at home twice a year and discuss escape routes with their children. Perhaps the reason Clark is so focused on fire safety is that years ago his middle brother lived above an alcoholic couple who smoked and accidentally lit their apartment on fire. The woman locked herself in a bathroom during the blaze and passed out. Clark's brother went into the burning apartment, knocked down the bathroom door and dragged the unconscious woman out. Seeing the burned apartment building as a teenager left a big impression on Clark.

Clark and his family have their bedrooms on the second floor of their home, but because of the slope of their lot it's a three-story drop from their windows to the ground. So Clark and his wife bought a fancy exterior ladder system that's light enough for their 8-year-old daughter to lift and climb down. They've also instructed their daughter to rescue her toddler brother in the event that Clark and his wife can't do so. In fact, Clark is so conscious of fire safety that he looks at the back of his door at hotels to study the escape route. He knows that if there's a smoke-filled hallway, he won't be able to see the exit sign. Two simple ways to cut down on your risk of household fire are checking your smoke detector frequently and being aware of burning candles in your home.

Right now there are a lot of newspaper headlines blaring about a "Sharp Rise in Winter Heating Costs Forecast." While that headline is good for selling newspapers, it isn't really true. Clark believes the real story is that just a fraction of us will see potentially big increases in what it costs to heat our homes. Here's his reasoning: Less than 10 percent of us heat with home heating oil, which will be up about 25 percent in price. Then there are about five percent of us who use propane, which will be up about 15 percent in price. The vast majority of Americans --about 60 percent of households -- use natural gas, which may at the most have a 10 percent increase in price. Finally, there's more than a third who heat with electricity, which will have no noticeable increase in price this winter. So unless you're in the minority and use imported oil or propane, you'll be relatively safe from huge heating expenses this coming season.

Natural gas, if you recall, was very expensive when the supply was disrupted following Hurricanes Katrina and Rita. But then it stabilized. Now we're having a mild hurricane season so far, so that bodes well for price. It's important not to be passive and feel like a victim when you hear the Department of Energy is expecting heating expenses to skyrocket. There are many things you can do to reduce your energy bill. Try using CFL bulbs instead of traditional incandescent ones and you'll save $30/year with every bulb you replace. You can also weather-strip your doors and windows to make your house less drafty in winter and cooler in summer. One of the best and easiest ways to save money is to use a programmable thermostat. And be sure to insulate your attic too. Visit EnergyStar.gov for more ways to save cash during the winter heating season.

It's no surprise that we Americans are energy hogs. But everyday there are new developments that help us reduce our energy consumption. Soon auto shoppers will actually be able to believe the gas mileage stickers found on cars in dealer lots! The feds used to put fake numbers on the stickers because the test used to calculate mileage efficiency was bogus. So you could purchase a vehicle expecting to get something like 26 miles/gallon (city) or 38 miles/gallon (highway) and get substantially lower real mileage. Now the government is enforcing a legitimate mileage test, so all cars shipped to dealers after Sept. 1 will have real numbers posted on them. Why the sudden change? The Toyota Prius really pushed this along. People were expecting to get 50-60 miles/gallon but the actual numbers were so much lower that people really ripped off and complained.

Another positive change that's a little further off involves LED (light emitting diode) lighting. Clark and his wife often battle over using regular or CFL (compact fluorescent lamp) bulbs in their home. He has a number of CFLs from the '90s when the technology still had a lot of kinks. In fact, once he was doing a TV story about energy-smart homes and he wanted to demonstrate his lighting for the camera crew. The CFLs took about 70 seconds to come on after he flipped the switch! Today's CFLs are much better (and faster to light up), so his wife is now more open to using them in their home. But CFLs may soon be a thing of the past when LEDs hit the market. LED are now used in new billboards and offer just about the best artificial light possible while eating up low energy. They don't release extra heat and they last for years. LEDs will probably be in offices, retail stores and industrial parks before they're available for home use. Clark thinks within four years LEDs should become a popular consumer product.

Less than 60 percent of us heat our homes or get hot water from natural gas. Yet the price of natural gas still affects you whenever you turn on a light or your TV. That's because electric companies often use natural gas to fire up their plants. The cost of natural gas really skyrocketed about two years ago after Hurricanes Katrina and Rita destroyed the industry's infrastructure. The price tripled in a week and stayed exorbitant for a long time after that. Last year, the price settled down some. But this year, you're going to get really sweet deals on natural gas. There are new industry reports out that show the supply of natural gas sitting in pipelines is the largest it's been since 1994. So barring another natural (or manmade) disaster, the price this winter will be the best it's been for quite a long time.

On the topic of gasoline, why is it that we're paying less at the pump when the price per barrel is often way above $70?? Clark attributes this to the "crack spread," which has nothing to do with crack or cocaine. The crack spread refers to the shortage of space in refineries that process crude oil into gasoline. Previously there was limited storage in the refineries, so that drove the price of gas up. Now that the crack spread has lessened, we benefit at the pump.

We've all be hearing about how tough it is to sell a home right now. Clark's read a number of articles that give some advice to sellers that he's been championing for years. Before you go to market, you should hire an inspector to carefully vet your home. Then fix whatever it is that needs repair, and have the inspector's report and your receipts available for prospective buyers to examine. As a seller, you have to psychologically try to get inside the head of a buyer. Even though a buyer may consider a used home, they still want it to be perfect like a doll house. Imagine that a corner of your roof needs repair and you don't spend the money to fix it. When their inspector finds it, the buyer is more likely to blow the potential repair cost out of proportion and make a lower offer on your house accordingly.

What should you do if you're upside down in your home -- that is, you owe more on it than it's worth? Some lenders will permit you to do a short sale, where you sell your property for a lower value before it financially takes you (and the lender) under. This idea came from the government's FHA program, which would allow people to sell for less than they owed on a property and walk away clean without going into foreclosure. Now private industry is learning from the government's short sale idea. Remember that the average foreclosure costs a lender $70,000, so they don't really want to foreclose. A short sale could be a win/win option for everyone.

Power companies have historically made more money by selling more power. But increasingly there's a move to do the reverse: some states are now rewarding their local power companies for getting people to use less energy. The Baltimore Sun reports that Maryland is now the fourth state to set it up so that power companies actually make more when their customers reduce their energy consumption. Clark believes there's a real need to do this in all 50 states. However, California, Idaho and New York are the only other states that have done anything about it so far. California has come a long way when you look at its power companies. Earlier this decade, power companies in the Golden State conspired to cheat customers by creating a false shortage of power and driving up the prices. So individuals and businesses there started fighting the rising costs by conserving. To this day, Californians still use far less power per person than the rest of us. But as a whole, Americans use six to seven times more energy per person than the citizens of other developed countries. Sometimes we are not always capable of seeing what the return on investment will be for practicing energy conservation. So Clark wonders if there should be monetary incentives to get homeowners to reduce household energy consumption.

Clark has noticed that a lot of garage space is not used for parking cars very much anymore. Garages have become giant storage rooms for a lot of people. There's a whole cottage industry of contractors who will convert your garage with special shelving or storage units. The Washington Post recently reported on one such company that offers slanted walls covering, ceiling mounted bike hoists and more. Why do more and more Americans want to trick out their garages? Clark thinks it's simply because we buy too much stuff, which also accounts for the growth of the off-site storage industry. Not too far from where Clark lives, there's a posh neighborhood with a storage company that's built their facility to look like it's from colonial Williamsburg! But while storage may be necessary during certain times of life -- when you're moving or getting divorced, for example -- the bottom line is that we're just buying too much junk. When Clark goes jogging at his beach home, he passes by a house with a three-car garage. Once the doors were open and he saw that two-thirds of the garage was stacked with storage boxes from the concrete floor to the roof. Maybe we all need to stop buying so much and discard some of the stuff we don't need. Clark's wife dates everything she puts in their home's storage room. If a year passes and she hasn't needed it, she sells it or gives it away. Meanwhile, Clark never grabs a cart when he's shopping -- unless he needs to get a very heavy item. That way he can cut down on impulse buys. When was the last time you went through your closet? If you want to cut down on what you have, try having a garage sale or giving it away on Freecycle.org.

A lot of people use burglar alarms to keep their homes safe. But such alarms aren't always safe for your wallet. Raleigh's News & Observer recently reported on how alarm salespeople canvas neighborhoods following a break-in and capitalize on the fear by signing homeowners to expensive three-year contracts. Even worse, many of the contracts have a rollover provision. So unless you properly notify the company otherwise, you'll be signed up again at the end of the contract -- even if you've moved out of the house! Clark despises some of the sales practices in this industry and even once overheard a veteran salesperson training a newbie while he was dining out. The vet was as bad as some of the burglars that might break into your home. Granted, not everyone in the field behaves like this.

Clark encourages people to go with alarm companies that don't require a contract. And beware of the TV ads you might see. Sometimes the initial fees are misrepresented to lure you in. Purchasing the alarm hardware is pretty standard, but make sure you're paying a reasonable price for monitoring costs -- in the mid-to-high teens range, and definitely lower than $20/month. Keep in mind that about 99.7 percent of alarms are false, so response time from the police may be slow. If you're worried about slow response time, a recent Forbes story detailed how you can now have a camera as part of your system. If the police can see an intruder via the camera, they'll be prompt first responders. But companies charge a huge markup for this camera technology. The article stated that in one instance the camera system cost $1,700 and there was a monthly monitoring charge of $45 on top of all the other fees. Fortunately, companies like WiLife.com sell affordable cameras that even a self-professed techno-idiot like Clark can operate. Clark's even heard of people with a second home at the beach or the mountains installing a camera -- not for security, but instead for when they're feeling nostalgic and want to see their other property!

It’s a lot easier to conserve energy these days than many people realize. One way is through the Energy Star program, a joint program between the U.S. Environmental Protection Agency and the U.S. Department of Energy. The idea is that everyone can save money and protect the environment through energy efficient products and practices. Today, Clark talked with a representative from the program, who said there are things people can do year round to save energy. The first thing you can do is check out the Energy Star site, which has an interactive tool called "Energy Star Home." It takes people step-by-step througout the home, showing how people can save money in each room. Check it out here.

Clark and his wife are in the midst of remodeling their home so the front and foyer area are a bit bigger. From the start, Clark has said it is completely for their enjoyment and that they shouldn’t expect it to increase the value of their home. In fact, new statistics from Remodeling magazine show that returns on home improvements are getting less valuable over time. People in the industry will claim you’ll get about 90 cents on the dollar; others say 80 percent. But, in actuality, it’s more like 75 percent. The only way you’ll make money back on a home improvement project is if you do the work yourself. If you can strip floors, redo the kitchen or bath or upgrade and rewire the electrical outlets, your wallet will benefit from it.

Clark is doing a renovation to his house solely for enjoyment. He and his wife, Lane, want to expand the front of their home so they have more space and can enjoy the home more. But often people renovate as a way to help sell a house or to increase the value. This rarely works. Yes, you want to fix appliances and fixtures that are broken. Cleaning, landscaping and painting are also important in terms of upkeep. But home improvements are personal, not financial in gain. Some insist that kitchen renovations give you the best bang for your buck. But, it’s important to remember that fads and trends for kitchens and other rooms come and go quickly. So, you could spend $20,000 to redo your kitchen to look more modern. A few years down the road, though, what was modern is now outdated. Stainless steel refrigerators are a perfect example. They were huge a few years ago; today, no one buys them. Spiral staircases are another loss. So, if you’re going to renovate, do it for you and your family, and don’t go overboard.

About six months ago, Clark mentioned that there experiments going on with electricity and electric bills in the Pacific Northwest. Technology makes it possible for you to have your very own power meter at your home. The price of the power you get for your home varies greatly, depending on the time of day. Generating electricity overnight, for example, is extremely cheap. On the other hand, during a summer day it’s quite expensive. But in the Northwest, people can see what power will cost them at that time and decide whether to use electricity then or wait. In Chicago, a similar test has been going on in 1,100 homes. It’s worked so well that it’s been expanded from 1,100 homes to 110,000 homes. The amount of energy saved in these experiments is huge. These meters are going to become mainstream and much less convenient. We can already set washers and dryers to start at a certain time, and it saves a ton of money. If only a small number of people do this, the savings are in the tens of billions each year because it eliminates the need for all those power plants. Not to mention the fact that it improves air quality not to have those power plants belching out pollution every day. If you get a flier about this, check it out. If you’re willing to do the work, you’ll benefit tenfold.

Clark has a very easy way for you to reduce energy costs in your home that is 100 percent effective. All you have to do is replace your existing incandescent light bulbs with compact fluorescent ones. Sounds easy right? Well, apparently only 6 percent of the population is using compact fluorescent bulbs. You could be saving yourself 15 to 20 percent on your electricity bill – not to mention helping the environment – if you’d switch. Traditional light bulbs give off a lot of heat, especially in warmer climates. And they eat you up in electricity costs. So, Clark doesn’t understand why more people aren’t catching on. Yes, you’ll pay about four times as much for the compact fluorescent bulbs upfront. But they last 10 times as longer and they use a quarter of the energy that traditional bulbs do. Would you believe Wal-Mart is pushing consumers to use compact fluorescents? In fact, Wal-Mart’s goal is to get people to buy 100 million bulbs in their stores over the next few years. It will make them a profit, but it will also save the country $3 billion in electricity. In addition, it will eliminate the need for numerous power plants around the country. So what are you waiting for? If you’ve never tried them or haven’t tried them recently, give it a shot. You can get about 8 bulbs for $10 at the warehouse clubs and they last for years. Other things you can do at home include unplugging the charger when your cell phone or other electronic is done charging. That alone will save you 10 percent on energy. Energy Star products are also a great deal and they too will reduce your energy costs by at least 10 percent. The Energy Star washers, which were more expensive, have gone down in price. Not to mention that they are much gentler on your clothes.

People have lamented to Clark over the years about how much home renovations cost. Last year alone, people spent $215 billion on home remodeling projects. The boom took off in the late 90s and hasn’t stopped since. But a number of factors have changed, and renovations are about to get a lot less expensive. People have gotten nervous about he values of houses, with the number of homes on the market rising dramatically. Plus, people who were making a living building new homes are suffering because those homes have stopped selling. So, the whole supply and demand has reversed. Now, contractors are looking for customers and sending notes, asking if people need any work. They are even showing up the next day to do work, and going above and beyond to get projects right. New homebuilders are becoming renovation and addition contractors, according to the New York Times. The result is that the cost of remodeling is declining. Materials cost less and people need work. So, margins are reduced. Just make sure you see thorough lists of jobs that the contractor has done in the last 18 months. If there is a gap in projects, ask why. There may be some people who didn’t like the contractor’s work. Also, make sure the contractor has insurance or you could wind up paying twice for the project. You want to talk to those folks and be choosy about who you hire. A good price doesn’t necessarily mean a good contractor.

In states with low gasoline taxes, you’re going to see prices drop into the $1 range. The price of a gallon of unleaded gasoline at wholesale is $1.45 right now. So, depending on where you live and the taxes charged in your state, you could be paying a lot less at the pump. Keep in mind that some states charge very little in taxes while others charge a huge amount, and the station usually posts that information. What about natural gas? The cost at wholesale is about 44 cents a therm. So, at retail, states that regulate the natural gas market, the price will go down significantly. In states that have deregulated the system, it’ll be up to the various companies what to charge you. Economists are speculating that the price will be about 75 cents a therm at retail, which is great. Who knows how long it will last? But for now, this is great news for winter.

How would you like to never receive another electric bill? It’s possible with a new technology called “Personal Wind Turbines” which are basically small windmills that are placed on your roof. It’s like having a power plant at your home. Depending on how fast the wind is in your area, the wind turbines generate up to 90 percent of the power you need. If you have a small house, the price is about $8,000. If you have a large house, you could be looking at $75,000 or more. But it’s an idea that is taking hold and is worth it. In a handful of states, you can get tax credit for using one. Clark lives in an area that doesn’t have enough steady wind power to have a turbine, and he has too many trees for a solar power solution. And some homeowner’s associations are prohibiting them. But if you can have a windmill, you should at least consider it. It will pay for itself in a short time and save you tons of money.

While gasoline has been playing an ugly role in our lives, natural gas is looking better all the time. That’s because there is a massive oversupply of natural gas. The price of natural gas has dropped so much that the price is significantly below wholesale a year ago. So, in states where the price of natural gas is regulated, people will see that savings trickle down to them. In states where the price fluctuates, people will need to shopping around. But it’s a great picture nonetheless. The price of natural gas after Hurricane Katrina last year was about $1.50. Today it’s about 56 cents per therm!

If you’re renovating your home, you may have noticed that the cost has gone up a whole lot. That’s because building materials are so much more expensive. The price of copper pipe & tubing is up 71 percent; drywall is up 24 percent; asphalt singles – 20 percent; concrete – 12 percent. The only items that have gone down in price are lumber and plywood. The L.A. Times reports that people are changing the materials they use because they find out the price and they’re shocked. The good news is that the boom of home improvements is slowing down. It just takes a while for the drop in material prices to catch up. Next year may be the year of change. If you want to do an addition to your home in 2007, contractors will be hungrier for work and will offer you better prices. In addition, builder stock prices are under assault and building activity is likely going to slow, as well. That, too, will affect what has been a shortage in building supplies. With more supplies in the market, prices are likely to go down.

Clark has great news for you if you’ve been considering a renovation or improvement on your home. You are about to have much more negotiating power when renovating or adding on to your home. So, doing improvements is going to be a much better deal. For years, renovators and contractors have been too busy to handle all of the requests out there. Some would often fail to call back or offer services because they were so busy. And, because of the demand, prices were high. But that time is over. Aside from a tiny number of cities, home prices aren’t going up anymore, and borrowing against homes has decreased. So contractors and renovators aren’t as busy anymore, and it’s a great time to renovate. Just be careful. When you hire someone to do a renovation on your home, you’re stuck with them for a while. So, you must screen them thoroughly and check references. Talk to at least five people that have used a certain contractor. Also, if you have work done on a home you already own, be mindful of lien laws. You have to get a release from the contractor that says he or she will pay a subcontractor as part of the deal. If you don’t get a release and that doesn’t happen, supply companies and subcontractors can place liens on your house.

Prices are dropping at the pumps to below the $2 mark! In fact, we’re in better shape than we were in spring of last year. So, what are the costs? The cost of gasoline at wholesale is $1.54 a gallon. But you must add in taxes and dealer mark-ups to get the actual price at the pump. So, what about natural gas prices? Roughly 51 percent of American homes use natural gas. At wholesale, natural gas peaked at about $1.50 per therm. These days it’s moving into the 60 cent range. There is a massive supply right now, so you’re going to pay less to heat your home as well. Long-term is a different story, but for now it's good news.

Clark recently had his home tested for energy leaks so he could make it more energy efficient for the winter. It turned out there were numerous problems, including poor duct work and inadequate insulation. So, he and his wife had some work done and they haven’t had to turn on the heat once this winter. The home is much better insulated now and they will worry less about energy prices. It’s hard to get people to do these things because they can be a real pain. The good news is that natural gas prices have dropped a considerable amount over the past three weeks. It’s not back to where things were a year ago, but it’s much better. That drop is due in part to a much more mild winter in typically cold parts of the country. So, the demand has been lower and there is an ample supply. It means that bills may not be quite as high as we thought they were. People who decided to take a floating rate are sitting pretty. But we had no way of knowing that would happen. Clark is predicting that we’re facing three more touch-and-go winter seasons, so there is still an advantage to taking extra steps to winterize your home – no matter what happens.

Americans are getting smarter about saving money on their energy costs. New data shows that consumers are replacing old appliances with energy efficient ones about half the time, according to the Washington Post. We’ve been spoiled with cheap energy for years in the States, but that is not the case now. People who heat their homes with natural gas are going to get eaten up this winter. So, it’s important to take all of the shortcuts and precautions that you can. Weather stripping, insulation and fixing faulty duct work are three things you can do to save money. Solar energy is also something to consider. If you live in an area with good sun, Congress has started offering tax breaks in 2006 and 2007. You could cover a good portion of the cost with these credits. If it costs you $3,000, for example, to put in a system, you get $1,000 from the Feds. Think about all of these things before we get into the heart of winter.

Clark has good news coming from the gas pump. The cost of gasoline at wholesale has dropped to $1.58 a gallon. We’re not seeing that at the pumps just yet, but it’s a good sign. In the past two weeks, gas prices at retail have dropped by one of the largest amounts in a two-week period. Prices in some areas of the country may drop below $2 a gallon, for instance. The bad news is that there are a number of reasons why this drop may be temporary. The Europeans shipped us emergency gas when the hurricanes hit, and the President drew from reserves that we don’t normally use. The government also temporarily waived some of the stringent guidelines at the state level. All these things dramatically increased the supply of gas in a short time and caused prices to go down. There is more bad news if you heat your home with natural gas. Prices are going to remain high in that industry. That is one of the reasons why you’re going to have a tough time this winter. But gasoline is going to get cheaper in the foreseeable future.

Marketers in all kinds of industries are using free gasoline as a lure to get you in their stores. Mitsubishi, for example, is offering up to $2,500 in free gas if you buy one of their vehicles. One bank offered $25 in gas for opening an account, and people signed up in droves. They had to end the promotion, in fact. A record company also offered free gas: either $50 for joining or a grand prize of a year’s worth to sign up. The company generated about 50,000 responses. So, clearly gas is making people feel out of control these days. But, you do have control if you set you mind to it. More people are doing what’s called “vehicle substitution,” where they take the more fuel efficient car instead of the gas guzzler when taking trips. Bicycle and scooter sales have skyrocketed, as well. People are riding bikes or scooters into work to save money. So, you can make decisions now that will impact your life. Even better news is that natural gas prices have dropped about 15 percent since the hurricanes hit. Prices will probably continue to drop, but it’s going to be a tough winter. The Wall Street Journal recently said energy prices are in a bubble right now, but it will eventually burst. We are entering a cycle of high prices, especially when it comes to heating our homes. But it won’t last forever. So, for now do what you can. Caulk around your windows, use electric heaters instead of natural gas where possible and insulate your house. This is a year when you’ll have to be innovative.

Heating your home this winter is going to be pretty costly. Home heating oil is going to be 34 percent more expensive. Natural gas is going to be 50 percent more expensive. And, electricity will go up about 11 percent. But there are things you can do to keep more of your money. First of all, check the insulation in your attic. Your No. 1 priority is to make sure the insulation in your attic is sufficient. Also, it may be time to replace your inefficient furnace. Clark normally doesn’t recommend this extreme purchase, but costs are going to go up so much this winter it may be worth it. Weather stripping or caulking is also very helpful and you reap the benefits right away. Clark also recommends heating the rooms where you spend most of your time with electric space heaters instead of turning on the heat as usual. Electricity hasn’t gone up nearly as much as natural gas, so it may be smart.

When it comes to renovations, what should you do? When should you renovate and when should you leave it alone? Well, first of all, you should do renovations solely because you want to. Renovations do not make you money. Even the most successful improvements cost more than the amount of value it will bring to your home. If you do a kitchen renovation, for example, you’ll recoup 92 percent of your money. Bathrooms, you’ll make back 90 cents on the dollar. Other areas, you will make back much less. But you shouldn’t do renovations to make money, so it shouldn’t matter.

Clark has always been a big fan of compact fluorescent light bulbs. Now, according to the Orange County Register, other people are catching on to this trend. The cost of the bulbs has gone down to about $1, and the light cast by the fluorescents is much more appealing these days. Not the mention the fact that you will save massive amounts of money if you use them. One bulb can save you about $30 over its lifetime. So, even though regular candescent bulbs cost much less, they aren’t nearly as good a deal. If you hated them before, try them again. You may change your mind.

Clark recently got his power bill and he was pretty stunned by the amount. The country has been hit by a heat wave, and the power grid has been working overtime. As a result, every additional ounce of energy that a power company has to make costs them a lot more than the previous ounces. Plus, energy gets much less efficient when it’s in such high demand. All of this can drive your power bill through the roof. Even worse, if you’re in a multi-story home with an attic, it may feel like parts of your home never get cool. In that case, your attic may not be properly ventilated or insulated. So, what can you do? Well, adding insulation to your attic is the cheapest way to save money on energy costs – in both summer and winter. In the winter, self-installed weather stripping also helps immensely. Zoning is also a great idea during winter, and summer on occasion. The British will usually heat only one room in the house and they save a tremendous amount. So, you’re not just a sitting duck. There are adjustments you can make when the temperatures shoot up or down.

Clark took the staff to Argentina in February and one of the many great treats of the trip was the ample number of daylight hours. It was a great time to go because winter in the States can bring lots of dark, depressing days. Well, Congress may have suffered mid-winter blues one time too many because legislators are considering extending daylight-savings time. If the bill passes, daylight-savings time will start in March and end at the end of November. Right now, it starts in April and ends in November. So, that means two more months of more daylight in our days. Tell us what you think by voting in our new poll. We’ll keep you posted on what happens.

What’s a townhouse worth these days? How about a traditional home? Well, in Nevada, California, Florida and Washington D.C., housing prices are going up more than 20 percent a year. The end result is that those areas may be in a “bubble” that is about to burst. Economists and those in the housing industry agree overwhelmingly. So, what happens to the bubble? Does it eventually burst or just slowly deflate? Well, the New York Times wrote a related story about Denver, which has been experiencing rising housing values for years. Home values there were escalating at a tremendous amount, and then it stopped all of a sudden last year. The bubble hasn’t burst, but the values have not changed. In some areas, they have gone down. But in most areas they’ve stayed the same. So, how does that affect people? If you have an adjustable rate loan, you may find yourself in a tight spot. People with a fixed rate can ride it out. But those who bought homes in the last phase of the bubble could face the worst of it. If you are in a bubble market and you have a risky loan, refinance to a safer loan. Homes in Denver are now sitting on the market for months. In addition, builders are cutting the price of houses and offering tons of incentives. So, it could take a while to sell your home. If you’re in a speculative market, figure out how to pull back from the cliff.

There are all kinds of alternative-fuel initiatives gaining strength in the US these days. In “downstate” Illinois, people are really looking at wind farms, and they’re growing fast. In one area, there are 243 wind towers. They are able to generate energy at an extremely efficient rate with zero air pollution. There is a lot of wind in the plain states, as you know. One planned wind station will produce enough energy for 120,000 homes in Chicago for an entire year. And it’s only the tip of the iceberg. As a country, we have to suck it up and deal with these wind towers because they produce energy we create ourselves. Biodiesel is another great idea that people are embracing in the Midwest. And, all of these initiatives are doing Clark’s heart good. We don’t want to be dependent on imported oil anymore because we want to be in a position of power.

About five years ago, Clark signed up for an experimental program with his utility company. The utility gets to seize Clark’s air conditioner on hot days when the demand is higher. In return, he gets a bounty and the company saves tons of money. That’s because it costs a power company much more to get that last bit of energy than it does when the company is producing energy on a non-hot day. So, each additional source of energy costs more than the one before. And, it's a win-win if the company can conserve resources and the customer gets the payback. The idea of adjusting prices based on how much it costs to provide energy is starting to take root. Several states are experimenting with meters that people can adjust themselves depending on demand. Therefore, consumers can control their power bills. Pennsylvania, Florida and California are all experimenting with programs. Look for something similar in your state.

Clark has a very strong bias regarding energy legislation and the need to create alternative sources of energy in the U.S. An electric utility, PG&E, believes this too and is offering incentives to buy energy efficient appliances. This is great news because it’s hard to get companies to see the benefits of getting more bang for the buck in this area. Consumers are sold on it. We know it’s worth it to spend a little more to get a longer lasting, more efficient product. But companies are reluctant to do that. In actuality it saves them money because those last kilowatts of energy they must produce cost much more than the first kilowatts they put out. So the less energy used the less it costs them. Find out more about it here.

Americans have been twiddling our thumbs when it comes to finding alternative energy sources. On the other hand, there has been a big movement in Europe to use alternative sources of power. America needs to follow suit, in Clark’s opinion. And it seems that we are slowly realizing the advantage to doing this. Corporate America realizes it can make money by trying alternative sources, and windmills are one of the best options. They produce energy at a lower cost and are much cleaner burning than coal and other sources. Another idea is to take trash and turn it into energy. You may not know it, but trash piles and landfills create theirs own energy. Governments can take that energy and turn it into fuel. In architecture, bringing solar energy into the design of the home is also getting big. These ideas usually start in commercial uses, but they slowly make their way into our homes. And it could save you tons in the future!

It’s going to be an expensive winter in terms of heating your home. Even in moderate climates, residents are going to feel pinched in the wallet when it comes to natural gas and home heating oil. The reason is that natural gas is being used for other things besides heating homes. It’s used in factories and power plants, as well. So, the cost of natural gas at wholesale is about three times what it was a few years ago. So, that carries over to your bills. Gas is now at about 70 cents per therm, which can really add up if you heat your water, home and stove with natural gas. Home heating oil, which is based on the price of crude oil, is also moving up. But you don’t have to just sit there and take it. First of all, caulking can save a ton of money. Windows that let hot air out or cold air in are wasting a ton of money. Adding insulation to the attic is also important. If you see a lot of rafters in the attic, it probably means you don’t have enough insulation. And the payback is fast. If you feel a draft around your door in the winter, you may need to replace the threshold around the door. A new, energy efficient water heater could also help if you plan to stay in the home for a while. But the other things are little and they’re easy to do, if you want to avoid sticker shock this winter.

What percent of burglar alarms are false? Would you believe just under 100 percent are false. Burglar alarms are just about last on the list of priorities for police officers because nearly every time they go it’s a waste of time. In fact, in L.A., the police chief said officers would not respond to alarms unless they were verified. You get one freebie. But if the police are called again, they will not go unless it’s verified. So, burglar alarm companies would have to find a way to verify these alarms. People in Los Angeles were livid! Clark published a poll on the topic to find out what you thought. More than half of the people polled said police should always respond. About six percent said cops should never respond because alarms are a waste of time. And just under 50 percent said alarms should be verified first. Now, L.A. has decided that money talks when it comes to alarms. The first time an officer responds to a false alarm at your house it’s $150. The second is $200, and $50 each time after that. The real issue is that we have these deterrents in our homes that are not effective. Putting cameras in the home is one way to allow burglar alarm companies to verify a crime in progress and tape it. But, in the meantime, it doesn’t make sense to Clark to waste taxpayer dollars on these false alarms.

Clark talks a lot about how to save money on energy in your home. One way to do this is to change how you light your home. What about cooling and heating your home? The Feds recently conducted an experiment in New York, Georgia and Florida that involved using energy at different times of the day. The three times were peak, shoulder and off-peak, and the cost of using energy is less at off-peak and shoulder times. The experiment showed that people changed when they used energy, depending on how much it cost. It’s called “real-time pricing,” and it would save customers tons if they had the choice to use it. Clark participates in a program that allows the power company to shut down his air conditioning when the company is running low on clean-burning fuel. The company pays him every month to do this and he loves getting that return. He thinks we should do that with other areas of the home. There is no question that people will respond positively when energy costs less. It’s time to take this from an experiment to real life.

Clark has always said he will accept lower quality for a lower price. The one exception for him is his house. If you buy a poorly built house, you buy nothing but problems over time. Clark thinks people should pay extra to make sure their homes are structurally sound and environmentally efficient. In recent years, people have started paying more – about three percent – to ensure that it does meet those standards. It’s still a new concept, though. Most people buy based on the monthly payment and that is all they consider. But it’s clear based on recent news that building homes to certain standards pays off. Compare Hurricane Andrew, which struck Florida in 1992, with Hurricane Charley, the hurricane that struck the same state just a few weeks ago. Florida upgraded its uniform building code about three years ago. And according to emergency management types, homes that had been built to the new standards sustained far less damage than did those that had not been built to the standards. Clark thinks government should provide some kind of role here. Yes, it will cost additional money. But over time, cities and counties will recoup the cost. Not to mention the amount of lives that could be saved. It took a lot of courage and hard work for the Florida legislature to overcome the power of the building lobby to set up standards for builders. But it has paid off and it’s benefited everyone.

Americans have become home improvement and remodeling maniacs. Demand is so great in some regions of the country that contractors are doing overnight shifts because they can’t get labor during the day. But there are simple, inexpensive things you can do that will give a house a new look. The simplest are new paint and new carpet. The paint industry would have you believe that you need to spend tons of money to get a quality look. Well, that’s just not true. According to the L.A. Times, “boutique manufacturers” are trying to convince consumers that they must buy designer paints to get the result they are looking for. Some of these “palettes,” as they are called, cost five or six times as much. Are they worth it? No way, says Consumer Reports. The magazine tested each of the paints and found that paints as cheap as $15 a gallon were great to use. So, there is no need to spend a fortune on paint.

Gasoline prices are outrageously high these days, and Clark’s wife’s car eats more gas than almost any other on the road. We are pinched by what we are paying for in all forms of energy. Furthermore, we are not doing much to help the country become energy independent. We’ll get a big assist from corporate America, which is reducing the amount of energy they use. But oil will only make a small impact on the economy. Standard & Poor’s reports people are not as efficient as industry when it comes to using energy. The Federal Reserve will raise interest rates over the next year, but is likely to do so at a slow rate. This will counterbalance the harm we might suffer from the rising energy costs. Because oil prices fluctuate, we could end up with cheaper oil this year, but world demand for oil is rising in places like China, where the economy is growing. We must be attentive to fuel economy in this country. This includes making choices about how we heat our homes. We should go with higher efficiency heating models and buy cars that use less gasoline if we want to do our part.

The fact that we have to depend on other countries for energy is an Achilles Heel. There is a lot of vulnerability in our nation’s defense as a result of it. And in certain ways we in the United States are behaving like a third world country when it comes to energy. If you haven’t experienced a blackout, you may not understand. But for Californians, things are shaky at best. Residents there experience blackouts all the time, and Governor Arnold schwarzenegger is trying to come up with a strategy to fix the problem. People just want it to go away, so they have complained about the governor getting involved. But something needs to change in this area, and Clark is glad Arnold is being proactive. And, as individuals, there is a lot you can do in your home. First of all, you need to have a plan. When there is a power outage, you need flashlights and batteries on hand. Non-perishable food is also a must, as is educating your kids about what to do and not to do when outages occur.

Clark embraces new kinds of solar power, wind power and just about anything that makes us less dependent on foreign countries for energy. The governors of the Western states have passed an energy initiative to promote the idea of using – and reusing – alternative fuel services, and Clark loves that idea. The U.S. Army is also working hard on using these alternatives. The Army has created tents that contain solar panels. Some of the tents are used to track soldiers during warfare; others are used as a portable power source. The panels are powerful enough to power fans, lights, radios and even laptop computers. Inventions like this make it much easier to have a mobile army and save resources and possibly lives. In addition, these kinds of inventions will be available to the public soon. People will be able to camp using tents and other items that can be energized by the sun. How cool is that!

The Feds have had a real tough time trying to deal with the country’s energy issues. It’s not a knock on President Bush, but coming from the oil industry could be clouding his vision a bit. Every probe has been about where we can get more oil or more coal. But there are other solutions out there. To Clark, the answer is to be creative. In the West, for example, the Western Governor’s Association established the Clean and Diversified Energy Initiative. It’s made up of 17 states that are trying to use the sun to create solar energy and the wind to create turbine energy. The goal is to increase the amount of energy coming from alternative sources. The states are not saying they are not going to use coal and natural gas, but they also don’t want to be slaves to the Middle East. As a result, there is a gulf between how the western and the eastern states look at the future. Clark hopes the Western mentality wins out.

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What about diesel fuel? Volkswagen and Mercedes are both putting a big emphasis on diesel-fueled cars. These are very different than the first diesel cars in that they burn clean fuel and they get good gas mileage. Volkswagen has a Beetle and a Passat, which average 40 and 30 mph respectively. Look for these on the market.

Clark just got his $400 electricity bill in the mail and he was not happy. He has done everything to lower the electric bill at his home, including changing the light bulbs, putting in Energy Star appliances, and replacing the A/C unit. Plus, Clark has had a lot of problems with energy surges. In the past few weeks, he has lost a computer and two TVs, even though there are surge protectors on all of these gadgets. The amount of surge is so large that he often loses things, though. If he had his druthers, he would install his very own power plant at the house. It’s something more and more people are doing these days because it’s energy efficient and cost effective. You basically receive part or all of your energy “off the grid.” You may have heard Clark’s excitement about windmill technology, as well. These automatically sense which way the wind is blowing and rotate to capture the greatest force of the wind. They are very cost effective and put out zero pollution. So, even though the price of natural gas and other energy sources is rising, the options are out there and they’re coming our way!

Clark is in the process of redoing his kitchen. He wasn’t totally on board with the idea, but now he’s glad he listened to his wife, Lane. It wasn’t that expensive, and the kitchen looks much nicer. But will Clark make back the money? Probably not. It’s unlikely they will make 100 percent on it, but they knew that going into the project. You should complete a home improvement project because you will enjoy how it looks and the purpose it serves. According to Remodeling Magazine, the typical repair will make back an average of 75 cents on every dollar you spend. Bathroom remodeling projects will get about 90 cents on the dollar, and kitchens will return about 80 cents on the dollar. So, don’t think about doing this if you’re going to be in your house for a short time.

If you use natural gas to heat your home or run other devices in your home, the cost is going to skyrocket this winter. Natural gas used to be a worthless byproduct of oil refinery operations. But it’s now a clean burning fuel that has, at times, been very cheap. Because it’s been so cheap at times, a new science allows factories and industries to do what’s called “fuel switching.” This means that they can switch commodities at the drop of a hat. If natural gas is the cheapest, they run on that. If oil was ever the cheapest, they would switch to that. So, natural gas is no longer just for consumers at home. It now has many other customers. Plus, a lot of electricity providers now have natural gas power plants. Regular electricity coming into your home may come from natural gas, for example. Therefore, natural gas is in short supply and the price for consumers has gone through the roof. In fact, the price right now is five times higher than it was just two years ago. So, if your water heater or furnace system croaks, you want to get the most efficient unit available. A federal program known as "Energy Star" makes it very easy. An Energy Star rated product has been tested and proven to be more efficient. Check out the products at energystar.gov.

Home equity line values are growing dramatically. The amount of money people are taking out has been steadily increasing. But as you take more money out, your net worth declines. As you borrow against the value of your home you have debt against your assets. So your worth declines. Home equity lines have become like ATM machines, meaning people just withdraw money whenever they want. There are circumstances when these loans are a good idea. For instance when you’re remodeling or redecorating. But paying back the money can get tough. And if you have a floating rate, the interest rate could jump all over the place. So, bigger banks are now offering you the chance to lock in the rate on your loan. The Wall Street Journal reports that Bank of America and Wells Fargo are a couple of the banks offering fixed rate home equity lines. They allow you to take a portion of the home equity line and fix the rate on it. If it convinces people to use these loans for their intended purpose – making home improvements – that’s great. But don’t use it to buy a boat, car or to take a vacation. If you get deeper in debt and are unable to make payments, the bank can take your house.

The television is filled with shows about renovating your house these days. Contractors are at work everywhere, it seems. Americans became “homebodies” after September 11, 2001, and that has led to some of the home renovation frenzy. But it can be a real hassle. Sometimes you have to move out of your home while the construction happens, and – if you don’t move out – it’s a lot to live with while the work is being done. The prices can get out of control, as well, especially if you let the project get out of control. So, keep the project small and keep it on schedule. If a contractor says a job will be finished by a certain date, make sure it happens. And add language into the contract that says what the contractor will do for you if the project runs long. Also, ask for the last 10 jobs done by the contractor, along with the start and end date. And call the people on the reference list. Ask them if the work was done on time, how it was handled and what - if anything – went wrong. Also, don’t think you’re doing the improvements to increase the value of your home. Research has shown that this doesn’t work. So, do it for aesthetic value because you will like living there.

People like the idea of doing home improvements or remodeling a certain area of their home because they think they’ll make money when it sells. But Clark is wary of this kind of thinking. According to Money Magazine, a no frills bathroom remodel will make you 87 percent of the money you spent on the project. A no frills kitchen remodel will get you an 80 percent return. In the best examples given, you end up with about the same return. So, you want to remodel your home because you will enjoy the results, not because it will make you money. Make it fun, too. That means having a clear plan with and idea of exactly how much it will cost and exactly what materials you’ll need. If you make back 80 to 90 percent on a home improvement and you get to enjoy it, then it’s really worth it in the end. A story in Smart Money magazine reports that an outdoor fireplace will cost you about $6,000. Media rooms, indoor hot tubs, personal spas, granite countertops and cathedral ceilings are also popular improvement ideas.

You’d probably agree that two major problems that exist today are the shortage of energy and the massive amounts of garbage we produce every day. But what if the two could have a symbiotic relationship? There are programs going on in cities across the U.S. as well as in Spain, Italy and Japan, where trash can be converted into fuel. You eliminate the junk going into the landfills and you provide energy to homes and factories at the same time. Even better, the new trash conversion technology emits very little pollution. According to ABCnews.com, each American produces five pounds of trash every day. That translates into 229 tons of trash every year. About one third of all trash is turned into compost, but the rest is wasted energy and wasted land. Clark also likes the idea of turning windmill power into energy. Not that many years ago, wind turbines were a giant sinking hole of technology. But over time, we have come up with new ways of capturing the wind and burning clean energy. Next time there is a battle in your neighborhood over a landfill, why not suggest turning the trash into cash instead.

Many months ago, Clark talked about a raging debate in Los Angeles over burglar alarms. Research shows that 98 percent of burglar alarms are false. So, police in L.A. decided not to respond to these alarms anymore and instead dedicate their time to other crimes. In police work, officers have discretion over the priority they place on a call. So, the city of Los Angeles has started a new procedure that compromises police needs with citizens’ needs. If a burglar alarm goes off, LA cops will respond twice in a year without any verification. On the third alarm, they won’t respond unless there is a third-party verification. Since the system has been in place, false alarm calls have been reduced by about 20 percent. Clark doesn’t know why that is, but it’s a positive sign. This is an area where technology will solve the problem. More and more companies will provide customers with cameras on their homes so they can monitor their homes while they’re away or out for the night. It will prevent false alarms and other potential damage.

About a year ago, Clark talked about a big fight between the Bush administration and the air conditioning industry regarding an improvement in the efficiency of our air conditioners. At the time, it appeared as if the air conditioning industry would not have to improve the quality of its products, despite the Bush camp's push. The idea was that these more efficient units would use less energy, so there would be less of a dependence on foreign sources for energy. Clark was not very happy with the fact that it died, but he still encouraged people to buy high-efficiency A/C units. There is a direct payback in what you save on your bills with one of these units. And now that advice appears to have paid off. According to the Dow Jones News Wires, the air conditioning industry is yielding to the Bush administration’s urges. So, in the future, you will have to buy one of these higher-efficiency units. Once the scale of production increases, these units will be the only ones on the market and prices will eventually go down. In the meantime, if your unit dies this summer, go for the more efficient unit. It will pay you back tenfold the longer you live there.

Two staff members brought in a story from “Parents” magazine about how to save money around your house in terms of the energy you use. Clark wanted to tell you about it and add some of his own advice to boot. The first concerns light bulbs in your house. “Parents” recommends cutting back on how often you use just three light bulbs in your home and you will save $60 a year. In addition, Clark likes to put compact fluorescent bulbs in his home in overhead lights. These are money saving gems that last much longer than regular incandescent bulbs. Granted, the light cast by these bulbs is a bit bright, but it’s gotten better. The second recommendation is to limit the amount of time you spend in the shower everyday. If you reduce your shower time from 15 minutes to 8 minutes, you will save another $60 a year. An added suggestion from Clark is to dial down the temperature on the water heater in your home. Most people have the temperatures set way too high, and it’s costing us tons. Another one is to turn the coffee maker off right after you make coffee. You’ll save $15 a year doing this. It’s not much. But if someone offered you $15, you’d take it right? You can also save $50 a year if you shut off your computer when you’re not using it. Re-caulking windows is another important recommendation. It’s a hassle but it will save you money and keep you nice and warm in winter.

Energy costs are skyrocketing in America today. And the fact that we must import most of our energy from foreign countries makes it even worse. But there are all kinds of alternatives out there, especially in Europe. The one Clark is most excited about is getting electricity from the wind. Wind power from windmills used to be very expensive. But wind can now generate electricity at a competitive cost to other forms of energy. It causes no pollution and can provide a great deal of the energy needs of one country. FPL – Florida Power & Light – has started getting into the trend, and farms in Sacramento are already experimenting with farms. The big potential source is in the Great Plains, where there are wind swept prairies. The wind is present there almost all the time, so it would be a great source. It’s even possible now to have your own wind turbine at home. Only a few people have set up home-based wind turbines, but these systems are much more efficient than traditional energy power sources. Did you know that 90 turbines will provide power for 75,000 homes? There are wind farms in 11 states around the country, and wind power creates 2 percent of our nation’s energy. Clark received a notice from the power company, offering cleaner burning fuel if he is willing to pay 10 percent extra. We’ll see if he is one of the pioneers.

Clark has an obsession with not spending money he doesn’t have to. And one area that has been a constant tug of war between Clark, his wife and their money involves the lighting in their home. You may not know it, but the lights in our homes account for about a quarter of your electric bill. And, about 95 percent of a light bulb’s output is actually heat, not light. So, Clark likes to save as much money as possible in this area and still accommodate the wishes of his wife, Lane, who doesn’t like really bright bulbs. So, the two have compromised on the lighting in their home. Any overhead lights get compact fluorescent bulbs, which are great money savers over time but are really bright. And any lamps get traditional incandescent bulbs because they are not as harsh. Four years ago, a compact fluorescent bulb cost more than $10. Today, they are about $1.50. And that extra you spend will save you about $50 over time. But what if there was a way to light your home that would be just as economical as fluorescents without compromising the lighting. There is a new technology just around the corner for residences called LED lighting. According to the New York Times, you could light an entire household using the same amount of energy it would take to illuminate four light bulbs. You’re essentially cutting the cost of lighting your home by 20 percent. LED lighting gives off no heat and casts a very pretty light, and it’s very hip with high-end homes. The bulbs are very expensive right now. But in just a few years, homes will be built specifically for LED lighting. If we can build a home that has this special kind of lighting and the same fixtures, it will save you tons of money in the future.