Staying Warm for Less Money

The combination of a weak economy and a production boom has dropped the cost of heating with natural gas to a six-year low and is keeping a lid on other heat sources as well. But you can still save more.

If you use natural gas, you'll spend $434 to $1,044 to keep your home toasty, according to the Energy Information Administration. That is 3% to 22% less than last year. You'll also catch a break if you use propane, which is a byproduct of natural gas, since propane prices are forecast to fall 12%. If you heat with oil, you won't be so lucky: Depending on where you live, you'll spend $912 to $1,722, or 0.3% to 18% more. Electric heat costs will range from $792 in the West to $1,526 in the Northeast.

Assuming you've already tried all the standard stuff for cutting down on your energy costs this winter, like caulking windows and doors, and making sure outlets are insulated — beefing up your attic insulation and adding a programmable thermostat — make sure your heating system is running as efficiently as possible. Clean or change your air filter monthly during the winter and schedule a furnace tune-up. That can extend the life of your system and shave as much as 10% off your heating bill.

Finally, don't forget about your water heater, which accounts for 15% to 25% of your energy costs. Turn down your water thermostat and, if the heater is in an unheated area, wrap it in an insulating "jacket."