ATLANTA, Georgia - With colder weather and higher home heating costs predicted this winter, The Home Depot (NYSE:HD) is clearing shelf space for energy conservation products throughout its more than 1,400 stores. To meet growing consumer interest in household energy efficiency, the world's largest retailer of energy conservation products will feature hundreds of items in special in-store displays bearing a bright green "E-plus" logo with information on energy savings for those products. Additionally, Home Depot has launched a special web site -- www.homedepot.com/energy -- featuring hundreds of home energy conservation projects, such as installing a storm door, weatherproofing and insulation.

Since creating the energy conservation category last year, The Home Depot has experienced a steady increase in sales of energy-efficient lighting, appliances, insulation products, programmable thermostats, ceiling fans, exterior doors, windows, and window treatments. Many of these products bear the U.S. Department of Energy's EnergyStar(R) label and are easily identified in Home Depot stores.

"More and more of the 20 million people who shop at The Home Depot every week are asking us for advice on ways to cut their energy bills," said Home Depot Global Product Merchant Richard Dale. "There are hundreds of simple projects homeowners can undertake to keep the cold out of their houses this winter. That's why we created the E-plus displays in our stores, to show customers what they can do to stay comfortable and take a big bite out of their energy bills."

Long-range meteorological forecasts, and even The Farmer's Almanac, predict a return to cold winter weather patterns in most of the United States this winter, with temperatures 10 to 20 degrees lower than last winter. As a result, the U.S. Dept. of Energy has predicted a 45-percent increase in home heating oil prices, a 19-percent increase for natural gas, and a 22-percent increase in the price of propane. The Northeastern U.S., where nearly a third of all households depend on heating oil, will be especially hard hit.

"The mild Autumn weather is a welcome respite from summer utility bills," Dale said. "But the change of seasons always signals a shift from high electricity bills for air conditioning to high fuel bills for winter heating. Given the state of the economy, people are looking for simple, high-return investments in their homes, and energy conservation tops the list."

Among the most popular items this year is compact fluorescent lighting, or "CFLs." While they cost a bit more, Dale said, CFLs last up to ten times longer and provide the same amount of light using up to 75 percent less energy. Prices in all categories of CFLs have fallen since last year, while product selection has doubled. Home Depot is the world's largest retailer of CFLs and last year sold more than 16 million bulbs.

Another important category is major appliances, such as washers, dryers, refrigerators and dishwashers. "EnergyStar is the Energy Department's program to identify energy-efficient appliances, regardless of the brand," Dale said. "An Energy Star refrigerator or washer is specially engineered to use 20 percent less energy than comparable models. With daily use, the appliance can pay for itself in energy savings alone after only a year or two."

According to the U.S. Dept. of Energy, the average household loses 31 percent of its heat through ceilings, walls and floors. "If you add a second layer of R-25 insulation in your attic, it will run you about 55 cents per square foot," Dale said. "But it will reduce your heating and cooling costs by up to 50 percent, cutting the total annual heating and cooling bill by about 15 percent.

"To cover a 2,000-square foot attic would cost $1,100," he said. "With a $4,200 annual energy bill, the annual savings would be $630, so it would pay for itself in less than two years."

One area people frequently overlook is their water heaters. Huge improvements in the efficiency of these appliances have occurred during just the last 10 years, helping them consume less gas or electricity per gallon of water. Any water heater can benefit from the addition of an insulation blanket and pipe insulation, which can reduce the rate of heat loss by as much as 35 percent. Another new technology is the Aquastar(R) tankless water heater, which produces hot water on demand without a reserve tank.

Dale also recommends replacing an existing thermostat with a programmable model that will allow the temperature to deviate during hours when people are typically not home. "There is no reason to keep your heat set at 65 or 68 degrees all day," he said. "The thermostat can be programmed to let the temperature fall to 62 or even 60 degrees while you are away or asleep. Every degree you can cut out will reduce your heating costs by about three to five percent, and that adds up."

The Home Depot's E-plus initiative is on-going and will feature special energy conservation displays in the high-visibility "end-caps" at the end of store aisles.

Additionally, select stores will conduct one-hour classes on home energy conservation as part of the free "How-to" Clinics offered nightly at Home Depot stores. "Home Depot will educate its customers about products and services that will help them conserve energy and money," said Dale. "Kid's Workshops at our stores will focus energy conservation as a family activity by teaching children good habits, like turning off unneeded lights, and completing a home energy checklist with their parents."

Founded in 1978, The Home Depot operates 1,471 stores in the United States, Puerto Rico, Canada and Mexico. With 2001 sales of $53.6 billion, Home Depot is the second-largest retailer in North America. In February, Fortune magazine named Home Depot the sixth Most Admired Company in America. The company's stock is publicly traded and is included in the Dow Jones Industrial Average and the Standard & Poor's 500 Index.

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