Home Energy Rates Change Depending On Time Of Day And How Much Energy Is Being Used
GERRI WILLIS, CNN ANCHOR: Today on OPEN HOUSE, why mortgage fraud is one of the fastest-growing white collar crimes. And everything you need to know about building an affordable home gym. But first, winter settles in from coast to coast, and that could mean higher energy bills for all of you. Just how high can they go? Well, guess what? It can be up to you. We've got you covered this morning, starting first with CNN meteorologist Rob Marciano. Good to see you.</s>ROB MARCIANO, CNN METEOROLOGIST: Good to see you, Gerri.</s>WILLIS: You really exist. Because, you know, the last time we were in the same city together, it seemed to me like I was working really hard. And see the pictures?</s>MARCIANO: Look at you. You are a weather correspondent. Forget about this staying inside the OPEN HOUSE. You need to get outdoors, and you do a great job. You were absolutely buried in snow, giving the play by play and just doing a fantastic job.</s>WILLIS: And what happened to you? It looks like a sunny day there in Denver when you're there. And you timed it, didn't you?</s>MARCIANO: Timing. Timing is everything. I don't like to be covered in snow. Nobody does. But that was quite a big snowstorm in Denver.</s>WILLIS: No kidding.</s>MARCIANO: And as you mentioned, winter is settling in just about everywhere now.</s>WILLIS: Everywhere. Well, OK, so I'm going to make you give us a long-term forecast.</s>MARCIANO: OK.</s>WILLIS: That's what we all want. We want to know how much we're going to be paying on our energy bills. So tell me, four weeks out, more snow? Any warm weather?</s>MARCIANO: Well, we'll probably get some snow in the next couple of weeks. I mean, it is wintertime. But, over the average -- and that's what we talk about when we talk about a two and three-month forecast -- you know, the average should pan out to be a milder winter, like what we've seen. It's a very El Nino-like winter.</s>WILLIS: I love -- that's good news. Love to hear that.</s>MARCIANO: Well, hopefully, it pans out.</s>WILLIS: I'll be calling you if it's not.</s>MARCIANO: Yes. Climate Prediction Center out of NOAA, they put out a forecast like what you asked for. And the northern tier states typically sees a little bit more mild temperatures, like we've seen on average, and then the southern half, near normal. So, the brighter...</s>WILLIS: That's what this map is, right?</s>MARCIANO: Yes. The brighter orange you are, the UP of Michigan, the Arrowhead of Minnesota, theoretically you should see on average mild temperatures going forward.</s>WILLIS: You know, I'm kind of thrilled to see California and Texas have some really cold weather, see what it's like to live in the Northeast.</s>MARCIANO: A little snow in Malibu. That was something to see for sure.</s>WILLIS: Yes, absolutely. Rob, thank you for that.</s>MARCIANO: OK.</s>WILLIS: Good news for your heating bills. It seems some home energy costs are going to be lower than originally predicted. The average homeowner in the U.S. will pay about $873 in heating bills this winter, and that is according to the Energy Department. And it's down from the first forecast, which was nearly $950. Now, if this hold up, it will be the first decline in heating bills in five years. Good news there. Keeping your home warm can still be costly, but just like cell phone minutes or airfare, energy rates change depending on the time of day and how much energy is being used. Steve Watson is the host of "Don't Sweat It" on HGTV in Los Angeles. Good to see you.</s>STEVE WATSON, HOST, "DON'T SWEAT IT": How are you, Gerri?</s>WILLIS: I'm excellent. OK, so how does this work, that energy prices fluctuate? Why?</s>WATSON: Well, just like your cell phone or just like airline prices, you have peak hours and you have off-peak hours. You have peak times and off-peak times. If you use a lot of electricity when everyone else on the grid is using a lot of electricity, your price per kilowatt hour is going to be higher and your bill is going to be a lot more expensive.</s>WILLIS: So, typically then, what should I be doing? I mean, typically, is there more energy being used in the morning, in the afternoon, evening?</s>WATSON: Well, I think, from what I understand, from what I've read, business hours, when people are at work, that is the peak hour. You know, just like with your cell phones. In the middle of the day, on a hot day or a super cold day, people have their heaters or air conditioners going in the summer time. People are at work. And the grids are getting overused. And because of that, the prices go up. So there's several things you can do to monitor that.</s>WILLIS: Well, let's get there, yes. So you say, of course, that one of the biggest mistakes people made is they actually turn off their heat during the day.</s>WATSON: Yes, because just like when you start your car, every time you turn the ignition, your car uses more gas than normal than if it's just running. If you turn off your heat or turn off your AC completely during the day, whenever you turn it on, it's going to be a huge surge in your electricity, and it's going to pull a lot more. So -- and it's going to be more difficult for it to heat or cool your house because, if you have the heat off all day long and your house drops to 60 degrees, well, just to get back up to 72, it's going to run for three, maybe four hours, where if you kept it at 65, 68 degrees all day long, it's been on and off, then it's going to take you a matter of minutes to heat it to a comfortable temperature.</s>WILLIS: What about space heaters? Do you like those? Are those good energy consumers?</s>WATSON: You know, space heaters, they do pull a lot of electricity. If you're going to use a space heater, just like with any small appliance, look for the energy saver logo on it. But, again, you're using a small appliance to heat a huge room, and that could just run for hours and hours and hours.</s>WILLIS: Programmable thermostats, everybody needs one, right?</s>WATSON: I would recommend a programmable thermostat. You can get those at any hardware store. They're easy to install. You can set that so you never have to worry about it again. When you're up and you're around, if you want it to be a nice comfortable 70 degrees, and the hours you're going to be in your house, you set that, and then it knows, when you leave, if you've got it programmed, it can drop down to 65 or 68 and save you a little bit of money, and the hassle of having to walk into the hallway and hit buttons all the time.</s>WILLIS: Bottom line, how much can I save?</s>WATSON: Well, depending on where you are in the country -- in certain states like Tennessee, it's like 5.8 cents per kilowatt hour. In California, it's 12 cents per kilowatt hour. New York, it's 14 to 15 cents. And it fluctuates throughout the day. If you -- if it's 10 cents an hour and you're spending 10 cents an hour for 24 hours, and over a period of 30 days if you cut that down a little bit, you can save yourself $70 to $80 just by being smart and knowing when to run certain appliances at certain times of day, and, you know, stay off the peak hours.</s>WILLIS: Great.</s>WATSON: There are programs that most power companies have, if not all, where they can monitor the usage and the price per kilowatt hour. And if you get with them and get with the program, then they can tell you when it's best for your household to use the most energy and save you the most money.</s>WILLIS: And that's a great idea. Probably contact your electric company to find out if you can get that information. Steve, thanks so much for being with us today.</s>WATSON: Thank you.</s>WILLIS: As you worry about your energy bills going up, your gas prices are going down. The national average of a gallon of gas dropped by 10 cents in the past month. It's due to the quickly dropping price of oil. Almost all states are seeing a significant drop in gas prices except for California, Nevada, and Hawaii. Coming up on OPEN HOUSE, the number of people falling victim to predatory lending is skyrocketing, so much so that the FBI is taking notice. We'll tell you how to protect yourself. Plus, building a gym in your home doesn't have to cost you an arm and a leg. I'll show you how to get a great workout without breaking the bank. And check this out. We'll take you inside the home of the future and tell you why it could be the home of, well, right now. But first, your "Tip of the Day."</s>WILLIS (voice-over): No matter what kind of TV you're in the market for, the most important thing to keep in mind is screen size. The distance between you and your TV should be two to three times the diagonal screen size. So if you get a 30-inch TV, you should be sitting about 5 to 7.5 feet away. Next to consider, standard CRT, LCD, plasma, or rear projection. Each has its pros and cons -- viewing angle, response time, contrast ratio, resolution, to name a few. A resolution of 480 denotes standard TV, while 720 and 1080 denote true HDTV. That's your "Tip of the Day."