Greenbacks for green appliances

Readers whose car didn’t make the clunker cut might still be able to cash in on government stimulus money by junking those old refrigerators and other items.

The U.S. Department of Energy has given states until October 15 to outline how they will allocate $300 million in federal stimulus funds set aside for appliance rebate and recycling programs. Among the eligible items – which must be replaced with efficient Energy Star-rated models – are refrigerators, dishwashers and laundry machines as well as air conditioners, furnaces, freezers and others.

Here’s the DOE’s July release on the campaign, which says most funds should be released by Nov. 30.

This MSNBC article explains the pitfalls of the mission, which unlike the nationally standardized cash-for-clunkers auto incentive program, is going to operate differently in each of the 50 states.

This section of the DOE Web site, which provides a breakdown on how its share of the American Recovery and Reinvestment Act funds, includes an interactive map; you can click on your state for a breakdown of stimulus cash allocation. Note also the links to state budget requests to the DOE and other resources.

Then, check with your state’s energy or environment department to find out who’s in charge and what shape the local program will take.

Obviously retailers, manufacturers (what few appliance makers still reside in the U.S.), scrap handlers and other affiliates are key interview targets. As with all such programs, skeptics abound and you’ll want to include their viewpoints.

One interesting question: Will replacing these big ticket items in time for the rebate sap consumers’ cash away from the usual fourth-quarter big ticket items: personal electronics destined for holiday gifts? Talk with dealers about what they’re anticipating and how they may be shifting inventory or promotions. (Buy a freezer, get half off on a DVD player? Who knows?)

As always, keep an eye out for local dealers doing a riff on the clunker theme. My junk mail this week included a catchy “cash-for-clunkers” trade-in offer from Husqvarna, the maker of upscale sewing and embroidery machines. The offer isn’t chump change, either: It’s worth up to $3,000 on qualifying equipment.

No doubt more retailers will be trying similar copycat sales. Round them up under one Web link from your business pages as a handy reader service and a catchy complement to your substantive business story.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.

Natural gas rates plunge

Record low overnight temps forced me to dial up the thermostat this morning, bringing back unwelcome memories of last year’s heating bills, which rivaled my monthly mortgage payment.

This year, though, it looks as though we’re in for a break.

Natural gas commodity prices are down 60 percent since the start of the 2009 – about a seven- or eight-year low, according to Kobi Platt, an analyst with the Energy Information Administration at the U.S. Department of Energy in Washington, D.C.

“This is a tremendous swing from last year,” said Platt. “And generally speaking, the lower prices we have seen this year will be passed on to consumers.”

That’ll be welcome news to your readers, so you might want to consider a fall heating outlook soon.

Run it as a personal finance package, contrasting this year’s outlook to last year’s astronomical heating rates. (Keep in mind that the entire natural gas price drop won’t be reflected on residential bills; local utilities have been buying fuel contracts all year at a variety of prices and we don’t yet know what weather or an economic rebound will do to demand.)

You also could stick to a straight business angle by looking at the commercial implications of lower natural gas prices. And they’re more numerous than you might think.

Only about a third of the 20 trillion or so cubic feet of natural gas consumed nationwide each year is used for residential and commercial heath. Another third is used in industrial processes – both as an energy source and as an ingredient in products ranging from fertilizers to plastics. The drop in demand by manufacturers, who’ve reined in production throughout the recession, has a lot to do with the current sky-high inventory levels and low prices.

The final third is used to generate electric power – and with natural gas prices dropping so precipitously, your local utilities might be reducing their reliance on coal even further. That’s another angle to check on, including the implications for electricity rates.

The EIA site’s natural gas portal is a wealth of resources, particularly the narrative monthly short-term energy outlook (sign up for the e-mail feed) and the weekly natural gas storage update – that’s a market mover and a key indicator of future price fluctuations. Don’t worry if you don’t understand this vast and complicated industry – EIA analysts like Platt are available by phone to walk you through the data.

Another angle is retail choice. Some states have allowed competitors to challenge monopoly utilities; here’s an EIA map that shows what’s going on in your area. If you have competitive suppliers, check with consumers to see how that’s working.

Be sure to check with your local utilities themselves and state public service regulators about rates and forecasts, as well as local residential and commercial users.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.

When weather makes biz stories

Feel like you’ve been trapped inside your laptop all summer? Grab an umbrella or an ice pack, as the case may be, and head for the door.

As Hurricane Bill whirls his way toward the Atlantic coast, heat waves roast the northwest, thunderstorms pound the central states and autumn looms for all of us, it’s not a bad time to get out and explore the financial effects of weather.

Clearly weather affects consumer behavior at the retail level and can make or break a season for firms ranging from mom & pop hardware stores to giant theme parks, from truckers to fashion buyers. Think ski resorts, fisheries, campgrounds, wineries, race tracks, souvenir shops and the person trying to figure out how many snow boots to order for Sears.

From a personal finance angle, how are your readers affected? Higher utility costs, flood insurance, repair and mitigation services can strain pocketbooks regionwide when Mother Nature misbehaves.

While some are hurt by weather anomalies, others reap. Resort operators may cringe at the approach of a storm, but who wouldn’t like to be a plywood purveyor in the path of a hurricane, or an air-conditioned theater on a 100-degree day?
If you’re undergoing a few days of volatile climate conditions, spin a local business story or two. Aside from the short-term scenarios just mentioned, it’s a good opportunity to speak with local industries about their longer-term meteorological strategies, logistics and risk management planning. You can spice up print and online packages with weather maps, explanatory graphics and climate lore unique to your area.

Helpful resources, aside from your local National Weather Service bureau, include this National Oceanic and Atmospheric Administration economics page, which explains weather’s economic impact on a variety of business and industry sectors.

Manufacturers, utilities, retailers, health-care concerns – all of the big employers in your area have an eye on the barometer at some level in their operations. Find the person in charge before an emergency strikes; you’ll generate a good biz feature now and an invaluable entry in your contacts file should a major weather emergency strike your turf.

An article last summer in The Wall Street Journal, for example, detailed Wal-Mart Inc.’s emergency preparedness plan – one aimed not just at protecting corporate property offering Wal-Mart stores as community shelters – in anticipation of Hurricane Gustav. Who knew that the massive retailer keeps an in-house meteorologist on staff?

Other businesses use third-party “industrial meteorology” services, like Alabama-based AWIS, www.awis.com which can advise corporate clients using proprietary analysis like its Livestock Heat Index. The American Meteorological Society, a professional organization, also maintains a committee that studies the societal impact of weather; its panel members are worth investigating for expertise or advice in your area.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.