s in 2003 Than Other Home Energies, DOE Says
AGA | AGA News
Natural Gas Cost Less in 2003 Than Other Home Energies, DOE
Says
Remains Best Home-Energy Value for Five of the Last Six Years
Peggy Laramie May 1, 2003
(202) 824-7204 PR 20e

Washington, D.C. Natural gas will cost less to use this year than other major home energy
sources, and the yellow EnergyGuide labels on many new appliances will reflect this cost information
starting May 9, according to the U.S. Department of Energys Office of Energy Efficiency and
Renewable Energy.

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, said Tom Moskitis, AGA director
of external affairs. For example, an average household can save more than $200 per year in
energy costs by using a natural gas water heater instead of a similar electric unit. That adds up to
big savings -- nearly $1,900 over the nine-year life of a water heater.

Here is what one million British thermal units (Btus) of various residential energy sources will cost in
2003, according to DOE:

Natural Gas $ 8.16
No. 2 Heating Oil $ 8.80
Kerosene $10.59
Propane $13.25
Electricity $24.65

Based on DOEs estimates, it will cost $525 in 2003 to heat an average home with a high-efficiency
natural gas furnace far less than the $1,512 it would cost with an electric resistance furnace or
$690 with an electric heat pump, an AGA analysis found.

For additional estimates of operating costs for home-heating systems and water heaters, read on.

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2003 Average Home-Heating Costs

(Calculated by AGA, based on DOE energy-cost estimates)

HOME-HEATING EQUIPMENT
2003 AVERAGE ANNUAL

OPERATING COST*
94%-efficient natural gas furnace
$ 525
80% -efficient natural gas furnace
$ 640
80%-efficient oil furnace
$ 688
84%-efficient oil furnace
$ 681
94%-efficient propane furnace
$ 845
80%-efficient propane furnace
$1,008
Electric 6.9 HSPF heat pump
$ 690
Electric resistance furnace
$1,512

2003 Average Water-Heating Costs and Lifetime Energy Savings
(Calculated by AGA, based on DOE energy-cost estimates)
WATER-HEATING EQUIPMENT
AVERAGE
ANNUAL
OPERATING
COST (2003)*
CONSUMER SAVINGS BY
CHOOSING A NATURAL GAS WATER
HEATER
(during average 9-year life of the
equipment)
Natural gas typical
$231
(baseline)
Electric - typical
$440
$1,881
The American Gas Association represents 191 local
energy utility companies that deliver natural gas to
more than 53

million homes, businesses and
industries throughout the United States. Natural
gas meets one-fourth of the United States energy
needs and is the fastest growing major energy
source.

- AGA -
_________________
*

These estimates by the American Gas
Association are based on DOEs 2003
representative annual costs of energy, using
equipment listed in the latest Gas Appliance
Manufacturers Association and Air Conditioning
and Refrigeration Institute equipment directories. The estimate is based on a 2,072 square-
foot home located in a moderately cold temperature region, such as St. Louis, with updated
energy efficiency features that reflect the 2000 International Energy Conservation Code.
Homes with less insulation, more floor space and located in a colder climate can expect to
have higher costs for appliances using all types of energy.

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