Realty Times February 19, 2003

Keep A Lid On Rising Heating Costs
by Broderick Perkins

Crude oil prices surpassed the $35 a barrel mark last week, inflated by cold weather, unrest in Venezuela, and the growing potential for war with Iraq.

That means your home heating oil has gone up too and it's time to batten the hatches and as much as possible reduce the need for heat in your home.

Jack Sullivan, executive vice president of the New England Fuel Institute (NEFI) was so concerned last week about the rising costs of oil he urged the Department of Energy to release heating oil from the Northeast Heating Oil Reserve to help dampen prices.

"Given current economic conditions a high petroleum distillate price is the last thing we can afford to allow. Families — especially the poor and elderly — small and large businesses all need the direct and significant relief that a release of petroleum distillate from the Strategic Petroleum Reserve would provide," Sullivan wrote to DOE.

The New York Mercantile Exchange (NYMEX) posted a 26-month peak price for heating oil futures for March delivery at $1.049 a gallon, but on Feb. 6 price differentials on the cash market jumped as much as eleven cents more than the NYMEX futures contract. March's natural gas futures rose too -- to a 24-month high of $5.91 per million BTU's.

Economic conditions that are pushing up home heating prices should be compelling reasons to conserve and take steps to make your home more energy efficient.

First, however, you'll need to determine what steps you can take to make your home more energy efficient. Here are some suggestions to help you ferret out where your home needs tightening.

  • Home Energy Rating System (HERS) Checkup -- The DOE's Energy Star program has developed an accredited energy rating inspection system performed by a trained specialist who will rate the energy efficiency of your home and provide a report detailing utility savings possible with recommended upgrades.

    An official energy rating inspection report is necessary to land an energy efficient mortgage, which lets you finance additional money for energy efficient home improvements and help you qualify for more home buying funds if the home is already sufficiently energy efficient. The affiliated Residential Energy Services Network (RESNET) offers a list of certified HERS providers.

  • Home Energy Audit -- Local utility companies, home inspectors, energy contractors and operations like California Home Energy Efficiency Rating System acquaint you with routine maintenance and provide inspections to point out how to upgrade your home's energy efficiency. Utility companies may offer the service for free. Private operations may charge as much as a general home inspection. Look for auditors with Energy Star, DOE or state energy department affiliation or certification.

  • Do It Yourself -- A variety of online tools can get you pointed in the right energy efficiency upgrade direction. They include:


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