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While most people know they pay too much for their utility bills, few understand what they’re paying for.

After extracting taxes and fees, the result is a big glob of kilowatts and therms. A better understanding of where your money is going on those electric and gas bill can help you focus on where to cut energy costs.

For example, energy experts believe that as much as 75 percent of your gas bill goes to pay for space heating, whether it’s a forced-air system or a boiler.

That substantial expenditure can be reduced in several ways, but the most efficient is to make sure your home is well-sealed and insulated. Also consider investing in a programmable or setback thermostat if you don’t already have one.

The other 25 percent of your gas bill is split about evenly between heating hot water and cooking, says Paul Knight, a Chicago-based architect who runs a residential energy efficiency consulting firm.

Other than eating out, it’s hard to cut back on cooking costs. But there are a couple of tricks. Leave the lids on pots, which will cook the food faster, and don’t open the oven door to peek in on a roast–use the oven window.

Reducing hot-water costs is easier: Wash most clothes in cold water, run only full loads in the dishwasher and be stingy running a hot-water tap.

An electric bill can also be dissected. For example, running central air conditioning–or several window air-conditioning units–can account for as much as half of your annual electric bill, says Knight.

A simple way to reduce that share is to retrict your air conditioner usage to extremely hot days. Instead rely on fans and open windows for cooling. Also, use a programmable thermostat to automatically turn down the air conditioner for times when you’ll be away from home.

The next biggest electricity consumer is most likely your refrigerator, especially if it’s an older, inefficient model, says Knight.

Keeping the main compartment and freezer full and keeping the door closed as much as possible will help reduce a refrigerator’s energy consumption. If you have an older refrigerator, consider upgrading to a new energy-efficient model. It can pay for itself in energy savings in a few years.

Next up is lighting, which can account for as much as 20 percent of your annual electric bill.

A simple way to decrease that portion of your electric bill is to replace incandescent bulbs with fluorescent bulbs. Also, rely more on natural lighting and shut off lights in unused rooms. Also consider timers and automatic shut-off switches.

“Fluorescent bulbs can use four to five times less electricity than incandescent bulbs,” says Knight.

Making up the rest of your electric bill are appliances–from hair dryers to television sets to alarm clocks.

While some of these devices cost pennies a week to run, the savings can add up, says Mark Berger, a senior technology specialist with the U.S. Department of Energy’s Chicago Regional Support Office.

For example, always turn off unwatched TVs, radios, computers, etc. A simple flip of a switch can add up to several dollars a year for each device.

Also, devices such as television sets have sleep modes that can burn more electricity while the appliance is sleeping than while it’s on. Consider unplugging these appliances or shutting off the sleeper feature. Also, run washers and dryers only when they have a full load.

“Every household is different as far as lifestyles, house size, number of people in the home and the existing energy efficiency of the home,” says Knight. “But there’s always room for improvement.”

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Got a question about home energy or home environmental issues? Write to Energy Q&A, Chicago Tribune, Your Place section, 435 N. Michigan Ave., 4th Floor, Chicago, Ill. 60611. Or you can e-mail energy qa@aol.com. Questions will be answered only through the column.