5.3.02

U.S. Department of Energy: Natural gas costs less in 2002 than other home energies

Natural gas will cost less to use this year than other major home energy sources, according to the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy.

Here is what one million British thermal units (Btus) of various residential energy sources will cost in 2002, according to DOE:

An average homeowner can save hundreds of dollars each year on energy costs by using natural gas to heat their homes, produce hot water and dry their clothes. For instance, you can heat two bathtubs of water with natural gas for every one heated with electricity. This can mean significant savings to families, according to the American Gas Association (AGA).

For example, it will cost $414 to heat an average home with a high-efficiency natural gas furnace -- far less than the $1,421 it will cost with an electric resistance furnace or $701 with an electric heat pump, an AGA analysis found.

Over the life of the equipment, these savings could really add up, says AGA.

A homeowner may save $2,200 by selecting a natural gas water heater instead of an electric water heater during the nine-year life of the unit. When shopping for an appliance, consumers should consider the purchase price of the natural gas equipment as an investment -- not as an expense.

Here are AGA's estimated operating costs of home heating systems and water heaters, based on DOE's 2002 operating cost projections:

Estimated Average Home Heating Costs -- 2002
(Calculated by the American Gas Association, based on DOE energy-cost estimates)

Equipment	2002 Average Annual Cost
95% efficient gas furnace	$414
78% efficient gas furnace	$536
Electric 8.0 HSPF heat pump	$701
Electric resistance furnace	$1,421

Estimated Average Water Heating Costs -- 2002 -- and Savings Over the 9-Year Life of the Equipment
(Calculated by the American Gas Association, based on DOE energy-cost estimates)

Natural gas remains the nation's most popular home-heating fuel. In all, 51 percent of the country's heated homes (49.1 million households) used natural gas heat in 2000, compared to 31 percent electric, 9 percent fuel oil or kerosene and 6 percent propane.

Every year, DOE forecasts the representative average unit costs of five residential energy sources. These estimates help consumers select appliances that are the most economical to operate, through the Federal Trade Commission's "EnergyGuide" appliance labeling program.

DOE's cost estimates for 2002 became effective May 24, and were published in the Federal Register April 24.

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