Summer is on its way, and with rising fuel costs pumping up the costs of your electricity, high bills could be on the horizon.
According to CNNMoney.com, there are a few things you need to know and what you can do to combat those high costs by keeping your bills under control.
1. Electricity is on the rise - According to CNN, Farmers Almanac is predicting that 2008 will be the warmest year of the past century. That means you’re going to have to run your air conditioner longer, and you’ll be paying more for it. Electricity rates are climbing across the board after several years of relatively flat prices. The average cost per kilowatt hour has increased from 8.4 cents in 1997 to 10.64 cents last year. That’s an increase of 24% in the past decade.
2. States see double digit price gains - Price increases have hit double digits in many states over the past year. Illinois saw an increase of 33%, and Hawaii saw rates climb just below 30%. Maryland, Oklahoma, and the District of Columbia aren’t far behind with double-digit gains. One expert said the deregulation of energy markets means consumers are more exposed to price fluctuations, according to CNN.
3. Know the facts - Rising gas prices factor big into the number you see on your utility bill. Power plants use fuel to make electricity, so when fuel costs rise, so does the cost of making electricity, according to Steve Nadel of the American Council for an Energy-Efficient Economy. CNN also says the cost of raw materials to build power plants are going up and include the cost of steel and cement. Demand from India and China for these kinds of materials, including coal and oil, is also driving up prices, CNN said.
4. Use your resources - To cut down on your air conditioning, CNNMoney says to keep your house closed tight in the daytime, keeping unwanted heat and humidity out. Don’t keep your windows open during the day, and close the blinds, curtains and shutters to block out those intense summer rays. Use landscaping to your advantage by using a well-placed tree, bush, or vine in a place to deliver effective shade. Finally, CNN recommends you take advantage of local utility offers to peg your energy costs to the time you use energy by doing your laundry mid-day.