Home Heating Fuel Prices to Rise Steeply

The cost of heating your home will rise this year, if today's projections from the Energy Information Administration prove accurate. The Alliance to Save Energy recommends investing in insulation, efficient appliances and other improvements that can save you money by reducing your demand for electricity and heating fuel — and sometimes by reducing your federal tax bill.

Here's a snapshot of the price expectations:

Fuel ................ Used by ......... 2006 Cost ....... 2007 Cost ..... Increase

Natural Gas ... 58% of U.S. . $12.36/mcf .... $13.14 ........... 6.3%

Heating Oil .... 7% ................. $2.48/gal ........ $2.88 .............. 16.1%

Propane .......... 5% ................. $20.02/gal ..... $2.28 ...............12.9

Electricity ....... 30% ............... $0.101/kwh ... $0.103 ............ 2%

The average U.S. household will spend $88 more on heating than last year — a 10% increase.

The Alliance to Save Energy urged people to take advantage of the last few months during which they can receive a federal income tax credit of up to $500 for certain energy-efficiency home improvements. Those tax credits will expire at midnight on December 31, 2007.

The House has included new incentives in its version of the energy bill, but the Senate has not, according to the Alliance to Save Energy. Whether or not those incentives make it into a final bill negotiated via conference committee, and whether or not that bill passes both houses and gets signed by President Bush are open questions. Such incentives make huge sense — both politically and environmentally, given that they are wildly popular (who likes paying taxes?) and help reduce our energy consumption.

Sense, as we know, doesn't always rule the day in Washington, unfortunately. (Though calls from constituents often do, hint hint.)

Regardless of the tax incentives, making energy efficiency improvements make sense. By saving money on heating, you're also reducing the burning of fossil fuels, which contributes pollution linked to global warming, heart and lung illnesses and acid rain.

Related Links

Home Energy Efficiency Tax Credits.

Home Energy Efficiency Tips from the Alliance to Save Energy

Energy Information Administration Home Heating Fuel Forecast

Related Tips

Try a DIY Energy Audit

Put on a Sweater

Adjust Your Water Heater

Bring Back the Draft Snake

Insulate Your Pipes

Seal Those Ducts

Install a Solar Water Heater

Watch That Thermostat

Use Ceiling Fans in Winter, Too

Buy Low-E Window Film

Dodge the Drafts

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