You Could Be Overpaying for Electricity By Thousands Yearly: When to Switch

The average American household spends about $100 a month on home heating and cooling, a cost that has increased steadily since the middle of last century. Although many home appliances are much more efficient than they used to be, the average household spends up to about 40% of their heating and cooling budget just to heat water and to run their air conditioners. 

Before the relatively recent advent of deregulated energy, customers often had only one option when it came to picking local power suppliers. These large companies set their own prices and did not have any competition locally, and therefore had to reason to lower customers' costs. There was no choice when it came to power companies and no recourse for the customer if they were dissatisfied with a company's services or prices.

Nowadays, many energy suppliers are taking full advantage of the deregulation of electricity markets and are striving to help customers save on their monthly bills. Now that customers are free to choose among energy suppliers, the pressure among power companies to compete for customers is driving energy prices lower, giving providers the ability to offer perks and placing a firmer emphasis on customer service and satisfaction.

In addition to choosing lower-cost power suppliers, many Americans are choosing to upgrade their appliances and home heating and cooling systems. If the average home spends approximately $1200 yearly to heat and cool the home, the estimated savings from the simple installation of a programmable thermostat can be upwards of $120 every year.

Deregulated energy markets, coupled with appliance and home heating improvements, seem to be benefiting the American energy consumer by offering lower prices and enhanced consumer choice. A competitive energy market means that energy companies have incentives to upgrade their customer service and repair times as well as to continually improve the quality of their facilities. 

Overall, electricity customers are reporting an increased level of satisfaction, citing a wider range of choice in electric providers and overall lower costs.

Is Your Refrigerator Green? Making Changes to Save on Energy Costs for the Home

Homeowners are always on the lookout for energy savings, and the good news is that recent technological developments are making energy conservation much more attainable. And with the average bill topping $100 every month, the quest for energy solutions can be an important one. 

That cost could drop to $90 monthly just by the installation of a thermostat that turns itself off and on in the homeowners' absence or regulates air temperature at night, when people are asleep. Keeping the house just a little bit cooler for eight hours a day during the winter months can add up to a savings of over $100 a year.

Solar panel systems are also becoming increasingly popular for homeowners who want to maximize their energy savings. There are tax breaks for commercial and home installation available in many states across the country. In fact, many homeowners report receiving monthly checks from electricity companies due to the fact that their solar systems generate more electricity than their home or business can use.

Smart appliances are also helping many Americans save big on energy costs. While the typical family spends about $20 monthly just to heat water for showers, dishes, and cooking, an insulated water heater can generate big savings.

Add in an eco-friendly shower head designed to save water and a washing machine that operates more efficiently, and the savings can mount rapidly. Even refrigerators are now designed to use one-quarter of the energy they did 50 years ago.

The idea of a $0 energy bill is very appealing to most home and business owners, and thanks to recent technological advances the cost of homeownership is becoming much more affordable. Although ecologically friendly appliances and solar panel systems require a financial investment, renewable energy can save thousands of dollars for a home in the long-term, maximizing energy savings and contributing to a healthier home.

3 Reasons to Support Energy Deregulation

Energy deregulation is a relatively new concept in the United States. For a long time electricity and energy companies were allowed to exist in regulated monopoly environments with the government controlling the process. However, recently more and more states have decided it's time they deregulated energy markets and gave the consumers the power to choose. Many of the changes in the industry over the last 20 years have been beneficial. In 1995 the generation of electricity accounted for about two-thirds of the price. The cost of generating electrons accounts for less than half the price today, according to the Edison Electric Institute. Here are three reasons to support energy industry deregulation to continue these developments.

1.) Antiquated System: The system of regulated power companies started at about the same time energy suppliers came into being in the 1800s. The main reason for the system being regulated and monopolies to be allowed was because there simply wasn't enough qualified people and companies to reasonably compete in the field.The government decided it would be in the best interest of the people to control distribution and prices. At the time it made sense. Times have changed. For example, the total electricity used in the U.S. in 2013 was 13 times more than in 1950. There are plenty of companies that can provide these services across the country in an efficient and easy manner. 

2.) Competitive Prices: The most important result of energy deregulation is the increase in competition. Whenever you allow competition to exist, the consumer will be better off. Even though the government regulates how much a company can make, it doesn't mean that's the cheapest rate it can be made available. All businesses are looking to maximize profits, but when you open competition you will have them competing for customers. That leads to decrease in prices and increase in service. 

3.) Increased Sustainability: Second only to the cost-effectiveness, energy deregulation can have huge benefits to the sustainability and environmentally friendly improvements in the industry. Another result of competition. When you have more people working to create something better, chances are you're going to get better results.  Now, people that are concerned about these matters can influence companies to work harder at it by giving them their business, or in turn taking it from them.

More Electricity Providers Going Green

The world is changing around us, at a faster and faster rate each year. The advancements that we have made as a species are absolutely astounding. Discoveries from the depths of outer space and beyond, technology in our hands that not long ago was barely a thought in science fiction, developments in medicine and wellness. In 2013, electricity use in the United States was not double or triple the electricity use in 1950, but 13 times greater! Think of everything that you use on a daily basis that requires an electrical charge, then think of the billions of other devices just like yours around the planet. That's a lot of energy! Electricity providers are never left wanting, that's for sure. There have been significant advancements in conserving energy, even as the demand for it goes up. Take for example the refrigerators we use today. In the U.S., average refrigerators currently on the market are 20% larger than the average refrigerators in 1975, they cost 60% less, and they use three-quarters less energy! And yet even with that progress of learning to conserve, we are still struggling to keep up with the energy demands without draining our planet dry of all resources.

So What Do We Do Now?

The answer to that, and the energy solutions we need, come from several different directions but begin with being conscious of the issue and spreading awareness of the need for energy conservation. First and foremost we need to be conscientious with our energy use. In American homes the largest portion of electricity (19% of electricity use in the residential areas) goes to air conditioning, and one of the largest costs when looking at utility bills is the 14 to 18% spent on water heating. So the things we learned as children still ring true today in regards to energy savings: don't leave the water running, there's no need to leave the air on when we're gone, take quick showers.

Energy Suppliers Adapt To Demand.

Companies sell what consumers continue to buy. So if we change our habits as consumers, and seek out renewable energy and green energy companies, the market will begin to change to the benefit of our planet, and of course, to us. There are more electricity providers that are focused on the health of the earth and sustaining the only home we have. And with President Obama's focus on climate change and with the enforcement of the Clean Power Plan, electricity providers across the board may need to switch gears, so that renewable resources will be the main supply for producing electricity, as opposed to precious fossil fuels.

While there may always be debate in the political realm over such issues, we can make it our mission as inhabitants of this marvelous planet to take a stand.

10 Easy Ways You Can Conserve Energy Today

Feeling the heat of summer electricity costs every time you open a bill from the electric company? You’re not alone. Between the costs of electricity generation and growing environmental awareness, people all around the world are looking for ways to cut down on their usage and see some energy savings. Fortunately, energy conservation doesn’t have to mean giving up modern comforts. Here are 10 easy ways you can start reducing your energy usage today:

1. Get a Programmable Thermostat

Air conditioning actually accounts for the largest portion of U.S. residential electricity use at 19%. But you can use about 10% less energy for cooling (and heating) by controlling temperatures with a programmable thermostat.

2. Replace All Your HVAC Filters

Inefficient HVAC systems have to work harder to keep your home comfortable. Replacing filters is an easy and relatively inexpensive way to give your system a boost. You should also ask your electric company if it offers any incentives for putting in high-efficiency systems.

3. Don’t Let the Sunshine In

You might want to soak up the sun this summer, but the same doesn’t go for your house. Insulated drapes and blinds can keep the sun from heating up the interior of your home. Long term, you might consider painting your house a light color and planting shade trees in order to reduce energy spent on summer cooling.

4. Install Low-Flow Shower Heads

Water heating is another major energy expense in most homes, accounting for 14 to 18% of utility bills. Use less hot water by installing a low-flow showerhead -- it will take literally minutes to do.

5. Wash Your Clothes in Cold Water

For the same reason, you can save quite a bit of energy by washing your clothes in cold or warm, rather than hot, water. Even if you do only two loads of laundry per week, you can also save around 500 pounds of CO2 from being released each year by doing so (that’s if you have an electric water heater; the figure is about 150 pounds for a gas water heater).

6. Embrace Line-Dried Laundry

Especially in the summer, many light fabrics don’t need to go in the dryer. You can get a folding drying rack for clothes if you don’t have space for an outside line.

7. Fill the Dishwasher All the Way

Don’t run the dishwasher until it’s full -- it will use the same amount of resources whether it’s washing five plates or 50. You can also turn off the drying cycle and allow dishes to air dry, which can shave around 20% off your dishwasher’s electricity usage.

8. Seal Around Your Windows

Caulking costs less than $1 per window, and can make a big difference when it comes to energy losses.

9. Unplug Battery and Device Chargers

Many chargers continue to draw power even when not in use, so it’s best to only plug them in when you’re actually charging something.

10. Cook Dinner on the Grill

Instead of cooking inside during the summer -- which will produce extra heat that your air conditioning will need to tackle -- grill outside. It’s more fun anyway.

Want to do even more concerning electricity conservation? Ask your electric company about smart meters that can help you accurately track your usage.

20-Year Study Shows Benefits of Energy Deregulation

Given that U.S. electricity use had, by 2013, gone up by 13 times since 1950, it shouldn’t come as a surprise that the average American household now uses 903 kilowatt hours of electricity each month -- and pays $107 to the electric company for each bill. And while there are some measures you can take to lower your bills (installing a programmable thermostat, for example, can help you save about 10% on heating and cooling costs), it may seem like the larger market that sets prices on electricity is out of your control. But that’s not precisely true: You can help yourself and other consumers in the long run by supporting deregulated energy markets.

New analysis of nearly 20 years’ worth of data has shown that consumers see benefits in price, investment and reliability when markets are deregulated, meaning that the method of power generation are separated from the companies that distribute that energy. Those benefits of energy deregulation are detailed in a study sponsored by the COMPETE Coalition and released in July.

“In a compelling example of what Justice Louis Brandeis termed states serving as laboratories of democracy, for nearly two decades, two retail electricity models, choice and monopoly, have operated in parallel allowing reliable comparison of the two models on key indicators,” COMPETE Counsel William Massey explained in a news release. “The data demonstrate that customer choice jurisdictions that steadily adapted and expanded retail choice out-perform, or at least compare favorably with, the states that have so far rejected broad-based customer market access.”

Here are some of the key points of the study, broken down:

- Between 1997 and 2014, prices in markets where consumers could choose their energy suppliers rose by 4.5% less than inflation; prices in monopoly states, on the other hand, rose by 8.4% more than inflation.

- In states with utility monopolies, electricity accounted for a bigger portion of consumer cost of living in 2014 than it did in 1997; the opposite was true for states where energy deregulation was implemented.

- Power generation in states offering customers energy choices produced energy more efficiently and at higher capacities than power generation monopoly states.

“It has been nearly two decades with workably competitive electricity markets in 13 states and the District of Columbia, and we can no longer ignore the facts,” commented Robert Powelson, commissioner and former chair of the Pennsylvania Public Utility Commission. “Customer choice works for electricity consumers and businesses, helping to drive down prices and attract billions of dollars of investment in new, more efficient generation.”

The full study, “Evolution of the Revolution: The Sustained Success of Retail Electricity Competition,” is available for download by the public online. Did you know about the potential energy savings associated with energy deregulation? Share your reaction to the new study in the comments.

3 Steps to Conserve Energy in Your Home

It seems as if we see the terms 'green energy' and 'renewable energy' everywhere these days, but how much of a role can you play in those goals as a homeowner? The answer is, you can play a pretty sizable one! Not only would you be helping out the environment by following steps to minimize your Eco-footprint, but also you can actually benefit from it in terms of money saved. There are five main tips to follow when you decide that energy conservation is something you want to take part in:

Talk to your electricity provider.

Many energy suppliers and electricity providers now take their own measures to conserve energy, and you should first check to see if yours is one of them. If yours does not take action on their own, you can consider planning your own energy conservation accordingly.

Account for what you use.

Chances are, you aren't cataloging where you're using energy in a typical day. In order to figure out where you can conserve energy, you should first take a few days to a week and make a list of where you're using energy and for how long. You may be surprised to see how long you leave the TV on when you're not watching it, or how much energy you could save by shutting your computer down every once in a while.

Conserve!

Now you're ready to cut down on your energy use. Electricity providers say that you can save almost 10% on your heating and cooling just by using a programmable thermostat. Or, you can take shorter, cooler showers and save 14 to 18% on water heating costs. Throughout the summer, look for air conditioning alternatives -- it could save you about 19%.

Don't forget: even the smallest things add up! Start saving energy and money now!