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.

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.

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.

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.

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.

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.

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!

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.

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.

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.

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.

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!

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.

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.

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 ob