HomeMy WebLinkAboutThe Citizen, 1994-10-12, Page 13THE CiT
Gas co. figures
say fuel oil
will soon be
THE CITIZEN, WEDNESDAY, OCTOBER 12, 1994. PAGE 13.
first choice
If a homeowner is furnace
shopping, heating oil equipment
will soon be the least expensive
route, say gas company figures. It
already is in the many rural areas
where natural gas pipelines are
being installed at extra cost to
consumers.
According to Union Gas billing
information mailed to customers in
August, if a customer in a new
pipeline development area
compares similar-priced furnaces, it
will cost $805 per year to heat with
fuel oil, and $933 for natural gas.
Gas prices include the gas
company's monthly service fee of
$7.50* and $15/month to offset the
cost of the new pipeline (for five
years for a total of
$900/household).
"This is important information
for consumers planning to replace
an older furnace, or switch from
electric heat, as well as anyone
planning to build a new home or
cottage," says Glen Austin,
chairman of the Canadian Oil Heat
Association and general manager of
Bradshaw-Leatherdale Fuels in
Waterford. "In many cases fuel oil
is already the better deal, and the
average furnace lasts 20 to 25
years. Very soon, oil will be the
fuel of choice everywhere and now
is the time to switch."
What if consumers live in an area
already supplied with natural gas?
Without the $180 paid annually for
the pipeline, heating with oil today
costs $52 more per year. But with
escalating natural gas costs such as
a 3.5 per cent increase recently
approved for Union Gas, fuel oil
will soon be the most economical
fuel available.
The National Energy Board
predicts 'substantial real growth' in
natural gas prices over the next 15
years. A 1991 study reports that
from that year, natural gas prices
will be 300 per cent higher in the
year 2010, while fuel oil prices will
remain comparatively stable, rising
by just 35 per cent over the same
period.
"The continued rate increases by
gas utilities show that this
prediction is coming true," says Mr.
Austin.
Mr. Austin says consumers might
choose to buy a higher efficiency
gas furnace rather than mid
efficiency, for $1,000 more. But he
cautions that with an annual cost
savings of $173 against the extra
$1,000, it will take nearly six years
to start saving - or perhaps never as
natural gas rates continue to go up.
"The odds are good that
consumers purchasing a high
efficiency gas furnace will not see a
return on their investment."
He notes that fuel oil is also a
more environmentally-friendly
choice, according to studies
released by the U.S. Environmental
Protection Agency and the
Brookhaven National Laboratory.
"In these studies of the
environmental cost of heating, one
million BTUs of energy cost US
$2.65 for fuel oil and US $2.76 for
natural gas. The studies found that
fuel oil produces less than two per
cent of the harmful carbon dioxide
in the environment, and that the
methane in natural gas produces 50
to 70 times the greenhouse effect as
carbon dioxide in healing oil."
"We believe this information will
make a significant difference for
consumers healing with electricity,
and for builders currently planning
new developments," he says.
* While gas company service
fees vary, they all charge customers
something for using the product:
Centra Gas charges a $9/monlh
service fee, Consumers Gas
customers pay $6.75/monlh.
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