Keep a lid on heating bills

How you pay could help.

By Sharon Epperson

If the sky-high cost of gasoline had you steaming this summer, you'll be hotter after you open your heating bill this winter. The average cost of heating oil is projected to reach $4.13 a gallon this winter, up 25% from 2007, and natural gas costs are expected to rise 17%. While you can't control prices, how you choose to pay could save you money.

Find a budget plan. Ask your gas or electric utility or the heating oil supplier whether it offers a "budget plan" so that you pay the same fixed amount each month. Your total annual bill may not change, but being able to plan for the monthly expense can prevent you from turning to credit cards to cover a whopping February heating bill.

Lock in a price, or ask about a "price cap" plan, if you use home heating oil. Instead of paying at the going rate after each delivery, find a company that will let you "lock in" a set monthly price over the season, regardless of fuel price fluctuations. "Price cap" plans guarantee that your price per gallon won't go higher than the "cap" over the winter. If fuel prices fall during the season, your price per gallon will drop, too.