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General Manager's Report
Heating Bills Expected to Climb
Again this Winter
November, 2007
To no one’s surprise, analysts are predicting an increase in heating costs for the coming winter. Both the Department of Energy and the National Energy Assistance Directors’ Association agree the typical American family will see an average increase of 10 percent in their winter heating bills. While natural gas and electricity will cost 6 and 7 percent more, respectively, than last winter, oil and propane prices are predicted to rise 28 percent. These anticipated increases could cost families an extra $200 to $500 dollars to stay warm this winter.
Even though the forecast is for the coming winter to be warmer than average, it is supposed to be colder than last year, which was the warmest winter on record. A colder winter will drive the demand for heat up, causing an increase in usage and a corresponding increase in total heating costs. In addition, the price of crude oil, which is used to derive heating oil as well as gasoline, is already up 34% over a year ago, at over $80 per barrel. It is expected to remain near record levels due to tight supplies and growing demand.
These projected increases will certainly affect our pocketbooks this winter. Regardless of the type of heating system you have in your residence, there are things you can do to reduce your overall heating costs. Servicing your heating system, adding additional insulation, sealing windows and doors, and lowering your thermostat setting are all efficient ways to decrease your heating demand. A programmable thermostat is a great way to reduce your heating load by setting back the temperature when your residence is vacant or at night while you are sleeping.
While natural gas and electricity will cost 6 and 7 percent more, respectively, than last winter,
oil and propane prices are predicted to rise 28 percent.
If an electric heat pump heats your residence, remember these units must work harder to make enough heat to keep your house warm as the temperature drops below freezing. When the temperature is in the 20’s and the wind chill makes it feel closer to zero, the outside unit cannot provide sufficient heat to keep your house warm. Then the electric strip heat contained in the air handler will activate. You will know this is happening when the air out of the vents becomes warm on your skin.
You will also notice that your electric bill jumps up significantly when this occurs for several hours within a billing month. Typically the strip heat is rated at 15 kilowatts. This means that for every hour that the strip heat is activated, it uses 15 kilowatt hours, costing around $1.60. If a cold snap travels through our area for a week, causing this strip heat to run 10 hours per day, then the cost for heat for that week alone is around $110. 00. When you add this amount to your other household usage, you can easily understand your electric bill could increase dramatically.
When raising the temperature setting on your thermostat, make sure you increment it by only one or two degrees at a time. This will help reduce the amount your strip heat is activated. However, on the cold, windy nights we commonly have here in the winter, you can expect the heat pump to run most of the time and so will the strip heat.
Thank You,
Jeff Loven
Email: jeff.loven@frenchbroademc.com
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