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Natural Gas Costs Less, Says DOE

Natural Gas Is America s Best Home Value When Compared to Other Energy Sources

Washington, D.C. - The American Gas Association (AGA) today announced the 2011 residential space heating and water heating costs that show natural gas will cost less to use in the coming year than other major home energy sources. The calculated operating cost comparisons between natural gas and other fuels are based on the Department of Energy s (DOE) Office of Energy Efficiency and Renewable Energy forecast, published in the March 10, 2011 Federal Register.

"Customers who will see the steepest savings in 2011 use natural gas throughout their homes, which will result in across-the-board low operating costs," said Dave McCurdy, president and CEO of AGA. "The cost-savings that natural gas customers will see in their utility bills are significant, especially during these difficult economic times."

The better the annual fuel utilization efficiency (AFUE) rating of the equipment the more savings customers can realize. For example, a 95 percent AFUE natural gas furnace provides the lowest-cost space heating option for homeowners, followed by an 80 percent AFUE natural gas furnace. Both offer significant annual operating cost savings over comparable space heating options.

In addition to these advanced space heating options, a new 40-gallon natural gas water heater provides savings of approximately 50 percent more than comparable options.

See below for a table listing home-heating and water-heating cost comparisons.

SPACE HEATING ANALYSIS SUMMARY: The space heating analysis is based on a 2,072 square foot house located in St. Louis and represents a 5,000 Heating Degree Day location. The house meets the 2009 International Energy Conservation Code and the space heating equipment is selected from the AHRI online directory. The 95% AFUE (Annual Fuel Utilization Efficiency) natural gas furnace provides the lowest operating cost space heating option.

2011 ANNUAL SPACE HEATING COST SUMMARY

Heating Equipment Type                    5000 Heating Degree Days

80% AFUE Gas Furnace                                $866
95% AFUE Gas Furnace                                $687
80% AFUE Propane Furnace                         $2,072
95% AFUE Propane Furnace                         $1,696
80% AFUE Oil Furnace                                  $1,827
85% AFUE Oil Furnace                                  $1,746
8.0 HSPF Electric Heat Pump                         $1,124
Electric Resistance Furnace                          $2,095

WATER HEATER ANALYSIS SUMMARY: The water heater analysis is based on providing the equivalent First Hour Rating (FHR) based on national average energy

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Natural Gas Costs Less, Says DOE