Set up im a small room of the house such as a den or secondary bedroom with a low ceiling and a southern exposure, as far as the space you spend time in during a power outage in cold weather. Your body heat will go a long way toward keeping the smaller space warm.
A gas stove and gas hot water heater would go a very long way toward making the house habitable, hot food and a hot shower will be the things you miss most, that will drive you into a hotel after a week or two.
Fire, the light,mthe color, the way the flames move, is a very comforting thing, so candles, oil lamps and the like make the makeshift living arrangements seem a little nicer and more bearable.
Agreed. Put everyone in one room with bathroom access. Body heat will help more than you think. Also, open the curtains when the sun is shining in and close them when it isn't. Light candles and set them in front of a mirror.