Davis Calls for Strengthening Consumer ProtectionsOctober 27, 2005

WASHINGTON, D.C. -- U.S. Rep. Lincoln Davis is calling for stronger consumer protections as many Americans prepare to deal with higher energy costs this winter.

Davis wants to enhance the Commodities Future Trading Commission's investigative authority into substantial price fluctuations, expand transparency of the natural gas market through greater disclosure requirements, and increase the criminal and civil penalties for market manipulation.

"With the sharp increases in energy costs and the volatility of the natural gas market, there is no better time to protect the pocketbooks of hardworking Americans," said Davis.

The Commodity Exchange Act, passed in 1936 to provide federal regulation of all futures trading activities, specifically recognizes excessive speculation in futures that causes unwarranted changes in the price of a commodity is a burden on interstate commerce.

The hurricane disasters that wreaked havoc on the Gulf States underscore the critical problem of unscrupulous speculators using disasters as an excuse to drive up the price of natural gas. These unethical speculators were taking advantage of the hype to push prices up even before Hurricane Rita made landfall. (Dow Jones, September 21st, Futures Soar Above $13 as Rita Strengthens). The price for natural gas continued to rise artificially despite computer models and official forecasts indicating Rita would miss the most prolific production facilities in the Gulf.

Estimates that U.S. consumers could face a 50-70 percent increase in energy bills this winter leaves Davis in serious doubt that seniors and low-income families can afford such a spike in costs. Moreover, American businesses could limit expansion plans or even relocate their plants overseas because of high energy costs.

"If there is unethical behavior going on it needs to be stopped and those perpetrating these acts must be punished," Davis added.

Davis recommends eight tips to get your home ready for winter as proposed by the Comfort Institute, an indoor comfort research and consumer protection organization that provides homeowners with ways to reduce energy costs.

1. Have your duct system tested for air leaks.
Many think that windows and doors are the major cause of a home's air leaks. But according to recent research by the Department of Energy (DOE), gaps, cracks and disconnections in the typical home's duct system are much more significant. The DOE states that the typical duct system loses 25% to 40% of the energy put out by the central furnace, heat pump or air conditioner.

2. Close any crawlspace vents.
If your home or any part of it are over a crawlspace, make sure the vents are closed for the winter. Many building scientists are now recommending drying out crawlspaces, covering the exposed soil with a sealed plastic vapor barrier, and sealing and insulating the crawlspace walls permanently.

3. Ask your heating contractor to perform an Infiltrometer "blower door" test.
The blower door is a computerized instrument originally invented by the Department of Energy. It pinpoints where your home's worst air leaks are, and also measures a home's overall leakiness.

4. Replace your furnace or heat pump air filter.
Most systems need this done every month to ensure safe and efficient operation. (Some systems, such as electronic air cleaners, need to be thoroughly washed.) Consider upgrading your system's air filter. The standard filter is there to help protect the equipment, not to clean the air in your home. Ask your heating contractor for information on new high efficiency air filters that can capture over 90% of the breathable particles of concern.

5. Have your heating system cleaned and tuned by a qualified contractor.
A pre-season tune up is a good investment. It reduces the chances of breakdowns in the middle of winter, and more than pays for itself through more energy efficient operation. While it is geared more towards finding a good contractor to replace old equipment, many of the tips are valuable for identifying a good service company.

6. Have your system checked for carbon monoxide and install a CO alarm.
When performing a furnace tune up, a good contractor will also offer to test your system for hazardous carbon monoxide (CO). CO can be produced by a dirty or malfunctioning gas or oil furnace or water heater. Every home should have at least one CO alarm. They are available from most heating contractors, as well as many retail outlets.

7. Adjust your thermostat to a cooler temperature when away or when sleeping.
Why heat your house when no-one's at home or everyone's under the blankets? Even just a five degree setback each night can save up to 10% on your heating bill. Save even more by setting back during the day when no-one's home. Even though the system will run a while to warm the house up, you still save money. If it's too much bother, ask your contractor to install a new programmable automatic thermostat. The new ones are reliable and very easy to use.

8. Consider replacing your old furnace or heat pump.
Just like a car, heating equipment doesn't last forever. If your system is over 12 years old and you are planning to stay in your home more than a few years, many authorities recommend considering replacing it before it fails permanently. A new system is safer, more dependable, and can pay for itself by being up to twice as energy efficient.