Reduce your propane pains with ELECTRIC HEAT
Capital Electric - February 1, 2011
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Capital member Jay Christensen purchased an air-source heat pump and plenum insert. The electric heat products qualify for Capital's off-peak and dual-fuel electric rates. |
When Jay Christensen built his home south of Bismarck six years ago, the cost of propane seemed reasonable. Of course, he expected the cost of propane to increase — just as inflation and demand increases the cost of gas, groceries and other necessities. But over time those large, biannual propane bills became more and more expensive, and improvements in electric heat products and their energy efficiency convinced him it was time to contact his electric cooperative and learn about cost-effective heating alternatives.
Jay called the member services department at Capital Electric and spoke with Josh Schaffner, member services assistant. First, Josh informed him that co-op consumers who heat their homes or places of business with propane or natural gas as their primary source of heating can add an electric heat product and qualify for the co-op's dual-fuel or straight electric heat programs. Next, Josh compared the current costs of electric heat and propane, and advised Jay that $200 of heat on propane would cost $125 on Capital's off-peak electric rate. That's a 38 percent savings!
Electric heat products
While there are a number of electric heat products to choose from, one of the most simple and efficient may be a plenum insert. If you have a propane tank and an adequate circuit panel, you can add a plenum heater to your furnace. The costs associated with installing a plenum heater include buying the equipment and hiring an
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ACTUAL COST COMPARISON: In February 2011, $200 of heat on propane would cost about $125 on Capital Electric's off-peak electric. |
electrician. Co-op members can purchase the equipment from Capital Electric for $800 to $1,000, depending on the size of the unit. The wiring may cost anywhere from $600 to $1,500, depending on the panel size and accessibility of the existing equipment. Based on current prices, homeowners can expect to see a full return on their plenum investment within four years. To learn more about Capital's electric heat products, click here and click on "products".
Electric heat programs
Once the plenum insert is operational, members will quality for one of Capital's electric heat programs. The first program is dual-fuel, which requires our members to have a backup heat system during load control periods. Capital's dual-fuel rate is 3.7 cents per kilowatt-hour (KWH). The chart on the next page compares the cost of electric heat and propane, showing members would pay 3.7 cents per KWH for electric heat on the dual-fuel program versus 90 cents per gallon of propane, which costs approximately $1.70 per gallon.
The second program is straight electric heat, which does not require a backup system. Capital's straight electric heat rate is 4.9 cents per KWH. That is approximately equal to paying $1.20 per gallon for propane. While not as cost-effective as the dual-fuel rate, this straight rate can still save money in comparison to current propane prices. To learn more about Capital's electric heat programs, click here and click on "Load Management Programs".
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For more information on plenum heaters or Capital Electric's electric heat programs, call Josh (left) or Doug in the member services department at (701) 223-1513. |
Efficient technology, affordable energy bills
After evaluating the costs for labor and equipment and estimating a return on investment, Jay Christensen and his wife, Dorothy, invested in electric heat. They purchased an air-source heat pump in combination with a plenum heater, and had the equipment installed in September. As indicated in the February 2011 cover story for North Dakota LIVING, so far they are pleased with the efficient technology and affordable heating bills.
While prices for propane and natural gas have fluctuated significantly over the past few years, electric heat rates have remained stable in the Capital service area. To learn more about the plenum insert or other electric heat products, call Josh or Doug in the member services department at (701) 223-1513.