The government projects that Americans who heat with natural gas will pay about 15 % more this year than last-and they're the lucky ones. If you use oil, you've already seen the effect of an expected 37% price hike. Propane costs will rise 26%. But don't think you're caught on the horns of a shiver-or shell-out dilemma. There are ways to apply some of the hard-learned lessons of earlier energy squeezes.

Combat drafts. The heat lost through small gaps around the house-especially around windows and doors-can amount to as much as if you left a window wide open, says Maria Vargas of the Environmental Protection Agency's Energy Star program. For a quick-and cheap fix, seal cracks with caulk or weathers tripping. If you live in a particularly cold climate, your utility may offer a free- or low-cost energy audit to spot air leaks and pinpoint other ways to trim your bill.

Cool down your hot water. Lower the temperature on your water heater to 120 degrees. The change will be virtually unnoticeable, and it can save you up to 10% on your water-heating bill. Wrapping your heater in an insulation blanket will yield additional savings.

Clean your furnace. Dirt and neglect are the top causes of furnace failure. Clogged filters reduce air circulation, forcing your system to work harder. One of the easiest ways to conserve energy is to change or clean the filter every other month. If it's been a few years since your last heating-system checkup, treat yourself, and your budget, to a house call.

An annual inspection and cleaning (which generally costs $70 to $120) saves customers 5%. "It's kind of like having a tune-up for your car," he says.

Get a "smart" thermostat. Programmable models automatically lower your house's temperature while you're away or snuggling under a down comforter. Setting the temperature at 68 degrees when you're home and awake and cutting it back to 60 or so while you're at work and at night could save as much as $100 over the winter. Basic models start at $30, so you'll quickly recoup the cost.

Looking ahead. When the frost thaws, you may want to consider some big ticket improvements. If you haven't added insulation in the past ten years, your house probably doesn't meet standards set by the Department of Energy, which now recommends about 18 inches of insulation in the attic. A $1,000 investment in insulation and caulk could save enough in heating costs to pay for itself within four years, according to the North American Insulation Manufacturers Association.

It may also be time to replace your furnace if it's ten to 15 years old. Today's Energy Star-approved units boast 15% more efficiency than decade-old models. Rick Nevin, a vice-president with ICF Consulting in Fairfax, Va., says that the money you save with an energy-efficient furnace, combined with the boost it gives your home value, will more than offset the cost of the upgrade.

Double- or triple-pane, energy efficient windows could save you even more. A 2,000-square-foot home in Boston with upgraded windows will cost at least 25% less to heat than one with single-pane windows, according to the Alliance to Save Energy. Energy efficient windows will also add value to your home.