On Fri, 25 Feb 2011 10:17:07 -0800 (PST), Higgs Boson wrote:

Is there a "right" was to store ordinary household extension cords?

Yes the twist/counter twist method of coiling then flat not hung on a
hook. Unless said hook is fairly broard, couple of inches wide and
curved.
A velcro based wrap is useful to keep the bundle tidy. *Do not* tie
an end around the bundle it will damage the cable over repeated ties
and time besides which a knot works loose.

--
Cheers
Dave.