Energy costs are low but electric bills aren't

The National Association of Homebuilders recently studied the consumer costs of owning a home. The biggest, far and away, was paying the monthly electric bill.

In every state electric utilities are regulated, but even so the rates consumers pay to keep the lights on and, in some cases heat and cool their homes, has been going up. Because different states have different ways of regulating utilities, the average monthly electric bill can vary widely, depending on where you live.

Outside of Alaska and Hawaii, the states with the highest average monthly bill are located in the west south central U.S. and include Arkansas, Louisiana, Oklahoma, and Texas. The average monthly electric bill in that region was $126.75 in 2013, according to the Energy Information Administration (EIA).

In the Pacific region, made up of California, Oregon, and Washington, the average bill is the lowest in the U.S. – $90.84. The state with the highest average monthly electric bill was Hawaii at $190.36 or nearly 2.5 times the average electric bill in New Mexico, which was the lowest in 2013 at $76.56.

Not all energy is getting cheaper

It may seem counter-intuitive for consumers, but at a time when they are paying sharply reduced prices for gasoline to power their cars and trucks, they are paying more to their utility for electricity. In fact, the EIA stats show residential consumers are paying more for electricity that businesses.

The average retail price paid by residential consumers in 2013 was 12.13 cents/kWh. The average retail price paid by commercial consumers was 10.31 cents/kWh while industrial consumers paid 6.88 cents/kWh.

While an overabundance of oil is mostly responsible for driving down the price of gasoline at the pump, electricity “supplies” are not increasing nearly as fast.

As we reported last week, U.S. utilities are projected to add 20 gigawatts (GW) of generating capacity to the power grid this year but are expected to remove 16 GW of capacity – mostly coal generating plants. That leaves a net gain of only 4 GW.

Much of the new capacity is being generated through alternative energy sources, most notably wind. But EIA points out not all power sources deliver the same bang for the buck.

“Because different types of generating capacity have very different utilization rates, with nuclear plants and natural gas combined-cycle generators having utilization factors three to five times those of wind and solar generators, capacity measures alone do not directly show how much generation is actually provided by new capacity of each type,” EIA said in a report.

What to do

For consumers who have endured a bitterly cold winter and look forward to higher air conditioning bills in the months ahead, conservation measures are the best way to keep electric bills in check.

If you have an electric water heater, lower the temperature. Most homes heat water at higher than necessary temperatures, requiring additional electricity to maintain that level.

The Environmental Protection Agency (EPA) estimates a water heater set at 140 degrees or hotter can waste more than $60 in energy costs were year.

Change your HVAC air filter on a regular basis. If possible, replace the disposable filter with a reusable one. When filters fill up with dirt and lint it increases the work load on the air handler, using more electricity.

If your appliances are old, consider an update. New appliances are much more energy efficient. If you are going to eventually have to replace them, doing it sooner rather than later will start saving on your monthly electric bill.

A programmable thermostat can quickly pay for itself. By raising the home’s temperature during the hours no one is home and then restoring the comfort level just before the family is scheduled to return, a programmable thermostat can dramatically trim electricity costs.

Energy costs are low but electric bills aren"t

Cutting Down On Home Heating Costs

GREENVILLE, S.C. - This latest cold spell is spurring many homeowners to get their heat checked.

“Our service department has been hammered with phone calls,” said Ross King of Dipple Heating And Air.

We caught up with him at a house in Greenville where a service tech was inspecting the furnace.

King recommends every homeowner get their system inspected twice a year: Once before summer and again now before winter.

And don’t forget about those air filters. King says you should change them out once a month because a dirty one makes your system work harder.

“They need as much air coming into them as they do going out. When you have a clogged filter or a thick filter, it restricts the air flow coming into the system. So thin filters, very inexpensive filters and change them regularly is the best way to keep them going,” said King.

And if you still have an old thermostat with the lever, ditch it for a digital one, preferably one you can program. According to the Energy Department, you can save 10% a year on heating costs by using a programmable thermostat.

“If you’re going to work for the day or just out to the store, you can change your thermostat a few degrees. The system actually works a lot harder to try to bring your home up to temperature if you come down ten degrees. The only time I would ever bring your thermostat down by ten plus degrees is if you’re gone for an extended period of time,” said King.

Another way to save this winter is through your water heater. According to the Energy Department, it accounts for up to 25% of energy used in the home. It recommends turning down the water heater temperature to the “warm” setting.

And when in doubt, ask your heating or energy company how you can save. For instance through Duke Energy, eligible homeowners can get a free in-home energy assessment. You can sign up online. Or call 844.DING.DONG (844.346.4366).

For more tips to cut down your heating bill, click here.

Cutting Down On Home Heating Costs

Candidates address energy, infrastructure costs and health care during debate in Cobourg

Northumberland News

COBOURG — Sitting before a capacity crowd in Cobourg, the provincial candidates in Northumberland-Quinte West weighed in on a variety of issues at the Best Western Inn leading up to election day.

In addition to addressing the rising cost of energy in Ontario, the four local candidates spoke to ways of attracting business to small towns, their plans to deal with infrastructure costs and energy during the all-candidates debate in Cobourg on June 5.

Hosted by the Northumberland Central Chamber of Commerce and the Port Hope and District Chamber of Commerce, the event featured Progressive Conservative incumbent Rob Milligan, Liberal candidate Lou Rinaldi, the New Democratic Party’s Kira Mees and Green Party candidate Gudrun Ludorf-Weaver.

Asked about ways in which he would create a more favourable climate for business investment in Port Hope and Cobourg, while preserving the integrity and quality of life enjoyed by small communities, Mr. Milligan said the cost of energy would have to be addressed.

“When I go around and I listen to small business owners, one of the first concerns they express to me is the cost of energy,” he said, adding that it is making running a business unaffordable. “They spend too much time not trying to sell their wares or produce goods.”

Pointing to existing programs which help communities revitalize their downtowns, Mr. Rinaldi said the Eastern Ontario Development Fund has been in existence from 2007.

“From a business perspective, I take great pride in it being developed right here at my Cobourg office,” he said, adding that it assists businesses to grow while attracting others to move to the area.

The Green Party candidate said that the province’s economy has fared better during the latest economic downturn, simply because of those small businesses.

“This province is actually made up of small towns just as the economy is made up of small businesses, which are the drivers to help us deal with the incredible global recession,” she said.

Ms. Mees said that entrepreneurs who are willing to take on the risks of business need to be supported by having their taxes lowered.

“We know those folks out there who own small businesses really need that help,” she said.

Asked about her plan to deal with the growing costs of road maintenance and infrastructure, Ms. Mees said that governments often deal with this by providing short-term solutions “which is not a smart way to plan,” leaving a debt for future generations to address.

“We need to change this and the province needs to work with the Eastern Ontario Wardens Caucus,” she said, adding that the funding structure of how municipalities are funded needs to be reviewed. “They need to know long-term what they can expect in terms of funding. It’s the only way that they can plan.”

Pointing out that her party would first promote carpooling, Ms. Ludorf-Weaver said that those who avoid using their cars should be rewarded with a tax credit.

“The Green Party would like to see green infrastructure, rail and not so much traffic on highways, because we’re concerned about fossil fuels and the greenhouse gas emissions they create,” she said.

While Mr. Rinaldi said the province is still feeling the effects of the previous government downloading highways to municipalities, he said the Liberal platform would invest in infrastructure.

“There is some $14.5 billion over 10 years to help rural Ontario deal with infrastructure needs. It’s something that’s greatly needed,” he said.

The solution for Mr. Milligan comes in the form of a dedicated gas tax revenue stream, which he envisions to be permanently in place.

“Infrastructure is a massive issue facing the province of Ontario … and this way communities will actually be able to forecast long-term how much revenue they will receive.”

Ontario’s Green Energy Act took centre stage during a debate on ways to deal with growing energy costs.

Calling the act “one of the greatest and devastating impacts on manufacturing in the province’s history,” Mr. Milligan said that the current government has already invested $46 billion in wind and solar, which has only resulted in the creation of less than three per cent of Ontario’s energy.

“Usually when you invest in something you get a return on it,” he said. “Mr. Rinaldi will go on about the Green Energy Act creating 31,000 jobs here in the province of Ontario, and I would like to see where those jobs are. We need reliable energy.”

He said the Tories are proposing to create 37 hydro sites that could be developed locally and would produce enough electricity for 15,000 households.

In response, Mr. Rinaldi said that the facts must be set straight.

“There is 31,000 jobs roughly created from the Green Energy Act and there is a couple of plants here in Cobourg that make parts for solar panels,” he said, adding that jobs are being created. “We are investing in our future.

While he admitted that there is a cost involved with green energy, Mr. Rinaldi said that enough damage has been done to planet.

“We need to start thinking about it,” he added.

In addition to halting the consolidation of local electricity distribution companies by Hydro One, Ms. Ludorf-Weaver said her party would also eliminate the Ontario Power Authority and combine it with the Independent Electricity Supply Operator, which is a Crown corporation that is responsible for operating the electrical market in Ontario.

“Green energy is the way of the future and renewables account for three per cent of your electricity bill,” she said. “Nuclear is 46 per cent and the Greens would not support the refurbishment of the Darlington nuclear plant.”

The NDP plan on energy would include a revolving fund that would allow the public to purchase solar panels for their homes to realize energy savings, Ms. Mees said.

“This has probably been one of “the” questions of the election,” she added. “We can’t have people making a choice between paying their hydro and paying for food. It’s crucial and the NDP has a multi-faceted approach to making your hydro more affordable.”

Dominik Wisniewski is a photographer/reporter for the Northumberland News.

Candidates address energy, infrastructure costs and health care during debate in Cobourg

Chelmsford wins grant to manage energy costs

CHELMSFORD — The town has been working to be greener, and will soon have help in doing so.

Chelmsford has been awarded a grant to pay for a new full-time energy manager and has been chosen among only five Massachusetts towns this year for a National Grid energy-efficiency initiative.

Both will help the town in its goal of becoming more environmentally friendly.

Chelmsford was already named a “Green Community” by the state in 2010, a list of Earth-conscious cities and towns that now numbers 123. The designation earns communities funding for projects — in Chelmsford’s case, $187,000 for a rooftop solar energy system at the Parker Middle School.

Last year, the town began an $18 million efficiency program for schools and town buildings that includes adding solar panels to the roof of each school and retrofitting many fixtures and equipment. The town is also considering a program known as energy aggregation, in which the town would seek competitive bids from suppliers for bulk purchase of energy from all Chelmsford residents.

Now the town hopes that an energy manager can help obtain more grants and help oversee those green initiatives.

“They say they save their salaries,” Public Works Director Gary Persichetti said of cost savings energy managers attract. “It’s a true statement. It does happen.”

The state Department of Energy Resources is paying for the energy manager for one year, with a salary of about $50,000. Half that amount could be funded for a second year, depending on energy performance.

“We’re very enthusiastic about this,” Town Manager Paul Cohen said last week when the grant was announced.

After that, the town would only continue staffing the position if it could justify the cost, Cohen said.

The National Grid program, which kicks off next month, includes home energy audits and discounts on efficient features like insulation of LED lights.

Town Meeting has voted to allow the town to issue a request for proposals for consulting services for aggregation, which will include creating a plan for state approval.

All energy users in Chelmsford have been estimated to save more than $1.7 million a year if the plan is approved. Seven communities or regions, including Lowell, participate in energy aggregation services in Massachusetts, according to the Chelmsford Energy Conservation Committee.

In yet another green initiative, the town will soon receive an electric Ford Focus that will be powered by a new charging station outside Town Hall. A Department of Energy Resources grant paid the cost difference between gas and electric models, Cohen said.

Follow Grant Welker on Twitter and Tout @SunGrantWelker.

Chelmsford wins grant to manage energy costs

New solar installation rules likely to raise costs

HONOLULU — A state board has issued new rules for solar panel installation that will require journeyman electricians to do more of the work, which is expected to raise the cost of installing the systems.

Hawaii’s Board of Electricians and Plumbers will require that electricians handle bonding and grounding the system, the Honolulu Star-Advertiser reported (http://bit.ly/1h7E3Fh ). Those are safety measures that keep people from getting shocked, by diverting current into the earth.

Solar energy system contractors previously handled that step. Leslie Cole-Brooks, the executive director of the Hawaii Solar Energy Association, said solar panels are now made so that an electrician isn’t needed to ground and bond the systems safely. The rules change will make installations slower and more expensive, she said.

“A significant number of panels have been installed, and nobody could bring forward any singular incident of property damage or personal injury because of an installation,” Cole-Brooks said.

There were about a million photovoltaic panels generating power in Hawaii at the end of 2013.

Building inspectors and electrical contractors had testified to the state board that they were concerned about safety. The number of installations in recent years led some companies to use unqualified workers, they said.

The safety concerns aren’t justified, and costs are likely to rise as a result of the new rules, said Gladys Marrone, government relations director for the Building Industry Association of Hawaii.

“From the building industry’s perspective, our mission (is) to keep construction costs down for homeowners,” she said.

The board won’t finalize the rules until its next meeting June 17, said Charlene Tamanaha, the boards’ executive officer. The board took up the issue after an information request by an affiliate of the International Brotherhood of Electrical Workers Local 1186.

New solar installation rules likely to raise costs

How far can you cut energy costs by investing in renewables?

Roof-mounted solar thermal systems to heat water are the easiest measure to install, and RHI payments should cover about half the cost over seven years. Photograph: Andrew Butterton/Alamy

The domestic renewable heat incentive (RHI), which was first proposed in 2010, was finally launched this week. Ministers say it is the first scheme of its kind in the world offering financial incentives to householders to install low-carbon heating systems. So do the figures add up for householders?

Who is it for?

It’s open to everyone, but the upfront and running costs of the technologies mean it will be most attractive to those living in the country who are off the main gas system and rely on oil, liquid gas or electricity for heating. The RHI differs from the feed-in tariffs for solar panels – which pay for electricity generated as well as exported to the national grid – by paying just for the energy predicted to be saved by their introduction.

What will replace my heating system?

Qualifying technologies include biomass boilers that burn wood, wood chips or pellets; roof-mounted solar thermal systems that only provide hot water; and ground or air-source heat pumps which draw heat from warmth underground or from the air.

How do I qualify?

Homeowners will have to pay for an assessment, which typically costs £100-£150, and must use accredited systems and installers to get the cash. You will need basic insulation in place to qualify for the payments.

How much will it cost?

The simplest measure is a solar water system that typically costs £4,000-£5,000 to install and should provide most of a home’s hot water for large parts of the year. Under the terms of the RHI, homes installing these will receive 19.2p per kilowatt hour, calculated according to a formula rather than based on actual consumption.

The Solar Trade Association says a typical four-occupant house will receive around £315 a year – or £2,200 in RHI payments over the seven years of the scheme – equal to around half the cost of the system. It estimates it could save a household £11,000 over its 25-year life, assuming they are no longer using an oil-fired boiler to heat their water.

Biomass boilers typically cost £15,000-£20,000 to install and allow users to do away with their conventional oil-fired boiler. The downside is that they require significant space, not just to house the kit itself, but also the wood or pellets waiting to be burned.

Installing households will receive a typical annual income of £2,200 per year or £15,400 over the life of the tariff in RHI payments, as well as saving the £2,000-£3,000 they currently pay for oil, gas or electricity to heat their home. That assumes a usage of around 18,000 kW/h per year heating the home and hot water. If you have your own supply of wood, the savings will be substantial. Otherwise, the cost of buying in wood or pellets, although much greener, is comparable with the cost of mains gas.

Air-source heat pump systems typically cost £10,000-£14,000 to install and will generate an annual income of just over £1,000 a year in RHI payments for seven years. Savings aren’t so great – typically £700-£800 a year, as the pumps require considerable electricity to run, but again, it will depend on what users currently spend on heating.

How will I be paid?

The energy regulator Ofgem is managing the RHI system and will send households the money. The RHI is paid tax-free each quarter for seven years, rising in line with inflation each year.

Around 18,000 households who have installed systems since July 2009 are already eligible to start receiving the payments.

Cathy Debenham, who runs the renewables advice website YouGen, says: “Its aim is to enable renewable heating systems to compete on a level playing field with fossil fuel ones. The payments compensate the owner for the price difference between the two, including the cost of borrowing money to pay for installation.”

She cautions that people should make sure technologies are right for their property before switching. “Not all renewable heating is appropriate for every property. Heat pumps run at much lower temperatures than a standard boiler, and so they are most suited to well-insulated buildings, ideally those with underfloor heating.”

“Biomass boilers are significantly bigger than an oil boiler and will need more space, plus space to store the fuel, which must be kept dry. Solar thermal panels are not much use if you have electric showers, as most of the hot water they generate won’t be used.”

Oftec, the oil heating industry’s trade body, said the high upfront costs of many of the technologies made the RHI “only fit for the wealthy few”.

The scheme has been welcomed by one Berkshire man, Bernhard Garside, who recently paid Ecovision to install a £14,000 air-source heat pump system. “Under the new domestic RHI I will receive an annual payment of at least £1,000. When I add this to the £2,500 savings I was previously paying for oil to run my expensive and very inefficient oil-fired boiler, I am saving at least £3,500 a year,” he says, although he will see increased electricity costs of £980.

“When I weighed up the cost of anything between £2,500 and £3,500 to replace my old oil-fired boiler, which was well past its sell-by date, plus the annual cost of the oil to run it, this would have been completely dead money,” he says.

How far can you cut energy costs by investing in renewables?