April Electric Bill Update - Fuel Price Increase!

April continued our 3rd straight month of decreased electric usage. As I discussed in last month’s update, publishing our usage will help us track the kilowatt hours and keep me accountable to reducing our home energy bills. Below are the details of our April bill (received in May). Our house is all-electric, except for gas used for cooking.

Electricity Usage 4/9/08 - 5/8/08:

Kilowatt Hours: 1,996 (vs. 2,442 last month)

Kilowatt Hours per square foot: 0.64

Electric Bill in $: $163.36

Electric Bill in $ per square foot: $0.053

April was a great month in terms of energy usage. With average temperatures most of the month in the 60’s, we didn’t have to run the HVAC system much. I actually had hoped my usage would be even lower. I’m going to track my daily usage for a week or so to gauge if there are spikes in the kilowatt hours used.

Rate Change

Anatomy of my electric bill: I’ve been a little confused about some aspects of my electric bill for the past few months. SWEPCO’s website has a page showing how to read your bill. This didn’t answer my questions on how the bill is calculated, but it did clarify some of what I’m being charged. I will definitely be calling the utility in the next few days to get further information. Below is what is shown on my bill currently.

Rate Billing = $78.09. This is the part I don’t understand. The per KWH charge for this has almost doubled in the past 2 months. I found no explanation on SWEPCO’s website. The CSR I talked to didn’t have much of an explanation either.

Customer Charge = $6.88. This is a flat monthly charge that never changes. It is supposed to cover the cost of the meter and other equipment charge.

Fuel Charge = $67.73. Charged per kilowatt hour, this month’s fuel rate was $0.0339340 per KWH.

Sales Tax = 10.69. 7% of total charges.

The frustrating part about our bill this month is that the dollar amount of my bill actually increased while my kilowatt hours decreased almost 20%. I called SWEPCO (my utility) to get the scoop. According to the customer service rep I spoke with, the increase occurred because of the following:

  1. Summer fuel price increase — Apparently, fuel prices are lowered in the winter and raise during the summer. The CSR explained that in our region, natural gas is used to generate the power. Since SWEPCO is governed as a public utility, its fuel prices are regulated. Natural gas usage is highest in the winter when it is used for heating purposes, so prices are kept lower to help consumers manage their cold weather bills. Natural gas usage by consumers goes down in the summer, so utilities are allowed to raise prices. The thought is that homeowners won’t notice the increased unit price in the summer. The crazy thing is, most homeowners in our region use natural gas for heating and electricity for air conditioning. The result for me is an increased unit price for electricity in the summer, when usage is highest. I wasn’t satisfied with this answer, so I’ll follow up with another phone call. Hopefully, I can track down someone a little higher up who can clarify the situation.
  2. Normal fuel price fluctuation — Since my electricity is generated by natural gas, the fuel price is adjusted periodically. Our fuel price has adjusted twice in the past four months.

Bottom Line: Great month for usage, but frustrating since my bill went up. Stay tuned for an update after I get my questions answered.

Energy Efficient Mortgages

With more people making the decision to invest in energy efficient homes, I’ve been reading more about energy efficient mortgages. Also called Green Mortgages, home owners are able to finance energy saving upgrades and pay for them over the life of the loan while enjoying lower utility bills.

Why would a bank want to make a Green Mortgage?

  1. The loan amount is higher. The energy saving components of the house add to the total amount of the mortgage. Simply, the bank earns more interest.
  2. The homeowner’s credit worthiness remains the same. The bank is willing to make a higher loan because the utility bills will be lower. The home owner’s ability to pay the loan remains high because their total cash outflow each month stays roughly the same. Essentially, the home owner trades lower utility bills for a higher mortgage payment. The bank gets the increased revenue, while the utility company loses revenue. Sounds like a good deal for the bank.
  3. Good public relations for the bank.

The key difference in qualifying for an Energy Efficient Mortgage is that the house (or house plans) must undergo an energy audit. The audit will reveal ways to improve the energy savings in the home. Mortgages backed by FHA, VA, Fannie Mae, or other government program each have their own requirements. For more information on the different requirements of Energy Efficient Mortgages, please review the Energy Star site.

MSNBC published a good article on green mortgages recently. I think the concept is great. However, personally I didn’t have the need to get an energy efficient mortgage. The additional costs that we incurred to install the energy saving components in our house were only around $15,000. We offset these costs by reducing costs in other areas. So, our total cost didn’t go up because we constructed an energy efficient home.

Conclusion: Green mortgages are a great concept for people who need them. However, I’m a big believer that homeowners can construct or remodel homes in a manner that won’t break the bank. By making smart choices, you can equip your home to save energy while still keeping costs low.

For more information on how I constructed my home for energy savings, read my ongoing series.

Inexpensive ways to save big on home energy costs

Mother Earth News recently listed 8 Easy Projects for Instant Energy Savings. The author lists 8 projects that cost $400 to implement that generate an estimated annual savings of over $900. Below is a list of the projects and my thoughts.

  1. Reduce power consumption of personal computers. The author plugged all of his computer equipment into a power strip and then turned the power strip off when the computer was not in use. This eliminates phantom power usage by computers and their peripherals. Phantom power loads occur when equipment that is supposedly turned off actually consumes power while it is in “standby” mode. As I type this I can see 5 green and red lights shining back at me from equipment that is turned “off”. The author also used power saving features on the computers to reduce power consumption during the day when the computer was on, but not in use. Conclusion: This is a cheap and simple project to implement. I have yet to do this project, but after seeing the difference it made in the author’s energy usage, I’ll get it done very soon.
  2. Install Compact Fluorescent Bulbs Throughout the House. This is something we did when we moved into our house last year. Conclusion: No brainer. Everyone should do this tomorrow.
  3. Seal and Insulate Heating Ducts. The author lives in an older home where the ductwork was not sealed at the joints properly. Use duct mastic (not duct tape) when sealing your ducts. Duct mastic will form a more permanent seal on the ductwork. Conclusion: This is a good project for a do-it-yourselfer. It doesn’t cost much (less than $20), and a few hours on the weekend will get the job done.
  4. Seal Your Home’s Air Leaks. Using a few tubes of caulking and some spray foam insulation (like Great Stuff foam sealant), the author sealed the air leaks in his home to prevent conditioned air from escaping the home. Conclusion: Also a great DIY project. Cost is minimal and the payback is very quick, especially in the comfort level of the rooms that were sealed.
  5. Vent Dryer Inside During Winter. I have considered this myself, but I always worry about adding too much humidity to the air. Lint could also be a problem. The author solved this by using a lint filter. Conclusion: I may experiment with this next winter. It could be a cheap way to keep heat in the house.
  6. Insulate Windows with Bubble Wrap. OK, this is where the author loses me. He actually covered his windows with bubble wrap to insulate against cold air during the winter. Personally, I think this is nuts. I can’t imagine living all winter with bubble wrap covering my windows. Conclusion: I’ll skip this one. Under extreme circumstances I might consider it, but only if my windows were so energy in-efficient that I had no other choice.
  7. Eliminate Phantom Electrical Loads. Essentially the same as #1, above; the author eliminated other phantom loads around his house to save energy.
  8. Use Electric Mattress Pads. The author used electric mattress pads during the winter so that he could keep the temperature in the rest of the house cooler. The electricity usage on the mattress pad is minimal, more than offset by the savings in heating costs. Conclusion: While not a good option for me, this is a method I have used in the past. Our current home was designed to maintain a constant temperature throughout the day. It would actually cost more to heat the house up in the morning than I would save by lowering the temperature at night.

Outside of the crazy bubble wrap idea, I like all of the ideas the author utilized. I encourage everyone to take little steps like this to reduce energy consumption. The payback time is short and the investment is minimal.

Our House - Windows

Continuing our discussion on the energy-saving features we put into our house, today I’ll talk about the windows we used.

In the first two installments of this series, I discussed the framing techniques we used and reflective roof decking. Both of these features have added tremendous energy saving potential to our house. For a full list of the energy saving techniques we used, read the overview post.

Windows

For all the windows in our home, we installed a double-paned, low e, argon-filled window manufactured by Harry G. Barr Company of Ft. Smith, AR. The windows have a U factor of 0.31. If these terms don’t mean much to you, don’t worry. When I started researching windows it was all very confusing. I’ll discuss each of these terms below.

Single vs. Double Paned

I’ve lived in a house with single paned windows. The difference in insulation value of a single versus double paned windows is significant. In a previous home we remodeled, we upgraded from single-paned windows to plain double-paned windows. The difference was dramatic in the comfort level of the home. There were fewer cold/hot spots along the walls, and our heating/cooling costs improved dramatically.

Argon Filled

For our new home, we decided to go one step further. Our windows included Argon gas that filled the gap between the panes. Argon gas serves as an insulator, thereby improving the window’s ability to resist heat flow. Based on the research we did, the argon gas won’t last forever. It will eventually find it’s way out of the gap between the panes. I considered not using it, but the additional cost was just a few hundred dollars.

Low E Coating

LowE (or low emittance) coatings are used to suppress the heat flow passing through the window. Here’s a good description from Efficient Windows.org.

“Coating a glass surface with a low-emittance material and facing that coating into the gap between the glass layers blocks a significant amount of this radiant heat transfer, thus lowering the total heat flow through the window. Low-E coatings are transparent to visible light. Different types of Low-E coatings have been designed to allow for high solar gain, moderate solar gain, or low solar gain.”

The Low E coating was the single biggest thing we added to our windows that improved the energy efficiency.

U Factor

The U Factor is the measure of the rate of non-solar heat loss or gain through a window.  The lower the U Factor, the greater the resistance of the window to heat flow and the greater its insulating value.  My goal was to choose a window with a U Factor of 0.32 or less.  The windows I chose have a U Factor of 0.31 with the Argon gas.  When and if the Argon dissipates over time, the U Factor will still be 0.35.  Compare this with common U Factors of 0.50 and higher in normal new construction, and you can see why our windows are head and shoulders above others.

Bottom Line

Windows are a huge part of the equation in constructing an energy efficient home.  With windows 30 - 40% more efficient than normal windows used in new construction, the additional cost we incurred will pay for itself in just a few years.  We will see the benefits for many years to come.  If you are considering replacement windows for your existing home, the above advice still applies.  Make the investment in quality windows.  You’ll see the benefit in cost savings and in the comfort of your home.

No excuses! Going green makes sense for everyone.

Bankrate has published its “5 worst excuses not to go green“. A lot of people talk about making changes, but most never get around to actually doing it.

  1. It’s too expensive.
  2. I can’t make a difference.
  3. It doesn’t fit my lifestyle.
  4. Green products don’t work.
  5. I don’t know where to start.

#1, #2, and #5: The key here is that small changes can make a difference. Just changing out your incandescent light bulbs with compact fluorescents as they burnout out will make a dent in your electric bill. Adjusting your thermostat a degree or two can also make a difference. It’s not about the size of each change you make. Just keep trying things, experiment. Because you’re making small changes, the cost is usually minimal.

One example from our home: We have a bonus room above the garage that is used as a kid’s playroom. It uses a separate HVAC system from the rest of the house.  Since this room is not used continuously every day, we realized that it was costing a lot of money to heat/cool the space.  Just by leaving the door to the room open and running the ceiling fan in reverse, we are now able to pull conditioned air from the lower level to the bonus room.  This simple change in behavior has enabled us to completely turn off the upstairs unit most of the year.

#3:  I don’t buy this argument.  Most people will be motivated by one of the following: saving money, doing the right thing for the environment, or living a healthier lifestyle.  Each of these can be accomplished by making green lifestyle choices.  The key for me is to make changes that fit into one of these categories.

#4:  There was a time when some “green” products didn’t work as well as traditional products.  That problem largely doesn’t exist anymore.  Most of the changes we made in the design of our home resulted in a better overall experience.

I think many people are starting to come to the realization that make green choices doesn’t make you a tree hugger (not that there’s anything wrong with that!).  Personally, while I like the fact that I may be helping the environment my primary motivation is the money that I can save by conserving energy.  I like the idea of living a more sustainable lifestyle.  I still have many things I want to try and I’m by no means an expert at living a sustainable lifestyle, but I’m making progress.  So, what’s one change you can make today to get started?

Greasecar!

I haven’t posted in a while.  I’ve been busy with a new job and also working on a redesign of this site.  I’ll get back to regular posts in the next few days.

I’ve been intrigued for a few years with the concept of running diesel powered cars with used vegetable oil recycled from restaurants.  It works like this:

  1. The car starts up using normal diesel fuel from the regular tank.  After warming up, the system switches to 100% vegetable oil.
  2. After reaching its destination, the car must purge the vegetable oil from its system and switched back to regular diesel fuel.

Because of the warm up time and purging process, this system will work best for people who drive long distances.  People who have very short commutes or are driving just a few blocks may not benefit from this type of system.  The thing that intrigues me is that the vegetable oil can be recycled from restaurants.  It is a waste product for the restaurants.  However, after filtering the fuel is completely free.  Restaurants normally have to pay to have the oil disposed of, so they are more than happy to have a resourceful consumer take it off their hands.

More info can be found here and here.  Greasecar.com sells DIY conversion kits that owners can install on their cars to take advantage of the technology.  I’m not a car-guy;  I don’t even change my own oil.  So this could be a daunting task if I were ever to attempt it.  I’ve considered buying a beater car and giving it a shot to see if I can do it.

This is not something at the top of my list.  I may never actually do it, but it’s an interesting concept.

March Electric Bill - How did we do?

In case you’re wondering whether the methods I’m using are making a real difference, starting this month I’ll publish our family’s monthly electricity usage. In addition to tracking my usage, this will keep me accountable to reducing our home energy bills. Below are the details of our March bill (received in April). Our house is all-electric, except for gas used for cooking.

Electricity Usage 3/7/08 - 4/8/08:

Kilowatt Hours: 2,442

Kilowatt Hours per square foot: .79

Electric Bill in $: $150.14

Electric Bill in $ per square foot: $0.05

March was a great month. We reduced our usage over the prior month by 450 kilowatt hours. The reduction is primarily due to mild weather during the month. Our HVAC system did not run much during the month. All of the design features we made in the construction of our house have really made the difference. Although it is hard to compare energy usage across homes, friends of mine with similar sized houses routinely report electric/gas bills that are double ours. Please take a moment to review the posts concerning how we built our house.  Stay tuned for the next couple of weeks as I continue to write about great ways to save energy around the house.

Our Home - Reflective Roof Decking

I’m sure most of you, like me, have climbed into your attic on a hot day. Here in Arkansas on a hot August day, temperatures in a normal attic can reach 130 degrees. I know — several years ago, we had our HVAC system replaced in August. The workers were understandably miserable in the stagnant air. Curious, I grabbed a thermometer and set it in the attic. I was astonished to find that the thermometer quickly registered 130 degrees!

The worst part? My heat/air ducts were run in the attic! In the hottest part of the summer, cool air was running through the ducts in my 130 degree attic. Even though the ducts are insulated, enough heat is transferred from the attic to the air ducts to make my HVAC system work harder and longer to keep the house cool. This was definitely something I wanted to address in the construction of our new home.

The solution? Reflective roof decking. A builder friend of mine told me about this product not long after we started designing the home. Normal roof decking is made of OSB (oriented strand board). OSB comes in 4 x 8 ft sheets and is nailed to the rafters prior to installation of shingles. Reflective roof decking, also called radiant barrier sheathing, has a heat-reflecting foil backing laminated to the OSB sheet. The reflective backing reduces heat transfer from the roof.
The result is a cooler attic in the summer by 15-20 degrees.

The brand that I used is SolarBoard, manufactured by Norbord. SolarBoard is EnergyStar certified. Here are the features listed on SolarBoard’s website. I’ve included my thoughts in italics.

  • Reduces radiant heat transfer through the roof by 97%.
  • Reduces attic temperatures by up to 30ºF (I’ve found mine to be in the 15-20 degree range, still phenomenal results)
  • Increases the efficiency of attic duct work. (I used in-floor ducts in my house to completely eliminate heat transfer from the roof to duct work)
  • Prolongs life of heating/air conditioning system.
  • Increases comfort level significantly.
  • Reduces cooling costs. (We’ve definitely found this to be true)
  • Helps hold heat in your home during winter. (That’s why the reflective surface faces inside, toward the attic)
  • Requires no maintenance. Does not deteriorate over time.
  • As solar heat increases, Solar Board’s effectiveness goes up.

The additional cost for us was approximately $1,000. That’s a small price to pay for reducing temperatures in my attic 15-20 degrees in the hottest part of the summer. Installation was the same as normal roof decking, so this was an easy decision to make. Another positive? I don’t mind making trips into the attic, even on the hottest day in August or September.

Cheap CFL light bulbs

In our electric bill this month, we received a coupon for $6 off a 5 or 6 pack of GE Energy Smart Compact Fluorescent Light Bulbs. Retail price for a 6 pack of 13 watt (60 watt equivalents) at the local Wal-Mart is $9.88. This brings my total cost to $3.88 for the six pack, or $0.65 per bulb. I will definitely be utilizing the coupon.

We installed CFL’s in most of the fixtures in our house. One of our problems with CFL’s is that the decorative bulbs take too long to warm up. Until the bulb is warmed up, the light is too dim to be practical. In areas where you only need light for a minute or two (bathrooms, laundry rooms, closets, etc.) it isn’t practical to use the decorative CFL bulbs. Our choice seems to be to use the normal CFL bulb or an old-school incandescent bulb. Thus far, we have chosen to use incandescent bulbs in those areas, but with this coupon, I may give the CFL’s another try. As it stands now, approximately 80% of the bulbs in our house are CFL’s.

Seal Air Leaks for Big Savings

I was looking through the Energy Star website today and came across some great information on sealing your home against air leaks.  Sealing air leaks in  your home is the cheapest way to make big progress toward reducing your heating and cooling costs.  This is the strategy we used when constructing our new home, but it is something you can do with an existing home as well.  Sealing you home is perfect for the do-it-yourselfer.  All you need is a few basic (and inexpensive) materials and some patience.

My top five air leaks to fix:

  1. Windows - caulk around windows to prevent air from leaking.  This will make the living space around the windows more comfortable and save money too!
  2. Doors - caulk or replace weather stripping around doors.
  3. Recessed can lights and other openings in your ceiling - this will take a little more work than the first two. You will need to climb into the attic and use a combination of caulk, spray foam insulation, and fiberglass insulation to seal the leaks.
  4. Air Ducts - Most houses lose a lot of air that leaks from ductwork into the attic.  This heated or cooled air might as well be money leaking from your wallet.  It is purely a  waste of conditioned air.  Ductwork can be sealed using tape made for air ducts.  Do NOT use the common gray duct tape that we’ve all used.  It will dry out and fall apart over time.  Also make sure there are not gaps in the insulation wrapping your ductwork.
  5. Attic doors - a lot of air can seep through gaps in the attic doors in our ceilings.  Use weather stripping to create a seal around the door.

The Energy Star website has a great DIY guide for sealing air leaks around your house.  I highly recommend you spend a Saturday performing this kind of maintenance.  It can pay big dividends by reducing your heating/cooling costs.