Understanding propane prices and tips to lower your energy costs.
As energy prices continue to rise, millions of homeowners still choose propane because its the same clean, safe, reliable energy source its always been. And KYPERC is here to help you understand the energy industry while providing ways to conserve resources and save you money.
What causes rising energy prices?
In recent years, virtually every fuel source has experienced an increase in price. Three main factors contribute to higher propane prices:
1. Higher Crude Oil and Natural Gas Prices. Because propane is produced from both crude oil and natural gas, its price generally follows those energy sources. As you know, crude oil prices are considerably higher today than last year.
2. Seasonal Weather Conditions. Colder temperatures during winter months increase demand for propane, particularly for home heating, which reduces supplies and leads to higher prices.
3. International Influences. The global propane mark is constantly changing. New customers all over the world are turning to propane as a home energy source. As a result, there is increased competition for propane, which means higher prices.
How to Lower Your Energy Costs
Some simple steps you can take to lower your energy bill year-round.
- Inspect and tune-up your residential heating system regularly. A heating system that runs well is more efficient and will save you money.
- Change your furnace filter monthly. Clean filters will increase efficiency. If on a monthly payment plan, use receipt of your monthly propane bill as a reminder.
- Invest in a programmable thermostat timer that lowers your homes temperature when you are not at home. You can cut annual heating bills by as much as 10% per year by turning your thermostat back 10-15% for 8 hours per day.
- Protect against drafts by caulking and weather-stripping around windows, doors and other openings such as ducts, fans and vents.
- Close vents and doors in unused rooms. Make sure your basement and attic are properly insulated.
- Install flow-restricting showerheads. You can reduce hot water usage by up to 50% without affecting shower pressure.
- Turn down your water heater from the standard 120° to 115°. You wont be able to tell the difference and you could save more than 10% on your water-heating bill.
- Run washing machines, clothes dryers and dishwashers with a full load.
Create Your Energy Plan.
- If youre not on a regular delivery schedule, you should consider filling your propane tank before the start of the heating season-dont wait until it is empty
- Discuss payment plan options with your propane retailer. Some retailers will help you spread your projected annual cost of propane over many months, spreading out the costs of seasonally higher bills.
- The federal government is offering a tax credit of up to $500 for qualifying energy-saving improvements made during the 2006 and 2007 calendar years. T credits are available for certain home improvements including high-efficiency heating and cooling equipment such as propane water heaters and furnaces. For more information visit energytaxincentives.org.
Design your energy plan with these tips, tools and resources:
Department of Energy
Alliance to Save Energy
Propane Education & Research Council
National Propane gas Association
Energy Assistance Programs:
In addition to the many ways to save money, assistance is available if you need help paying your bills.
For more information visit Department of Energy:
http://eere.energy.gov/weatherization/
Or contact the Low-Income Home Energy Assistance Program at 1-866-674-6327, energyassistance@ncat.org or visits www.acf.hhs.gov/programs/liheap.
