Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, March 3, 1991 TAG: 9103020218
SECTION: BUSINESS PAGE: E-3 EDITION: METRO
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE: LENGTH: Medium
Appalachian Power Co. claims 82 percent of the new homes constructed in its two-state service area have all-electric heat.
Yet, across town, Roanoke Gas said about 70 percent of the homes in its Roanoke territory are heated by gas and the goal is 80 percent.
The gas company's annual report says businesses are converting to gas in record numbers and "we are making more home conversions than ever." Its advertising pokes fun at electric heat pumps and urges customers to use gas heat instead of "taking a bath with utility bills."
Roanoke Gas has stepped up its advertising because "we have to be competitive, we are cost competitive with any fuel," said Frank Farmer, the company's president. He says gas heat costs half that of warmth from a baseboard electric unit.
Apco's promotional thrust is toward "high efficiency" heat pumps, said Marvin Ratcliff, that utility's marketing and customer services manager. Heat pumps are from 30 percent to 40 percent more efficient than they were three or four years ago because of technological improvements, he said.
Last year, more than 10,560 heat pumps were installed in homes and offices in Apco territory, he said, and the number is rising by 10 percent to 15 percent a year.
Apco does not encourage fuel switching, Ratcliff said, but the company tells consumers "there are other options available. If they have a good furnace, we encourage them to add on a heat pump for air conditioning or better heat."
If all things are equal in a home, Ratcliff said, "we have found that a heat pump will heat for a little less than gas." The cost of gas is less than oil, he added.
Installation costs of a high-efficiency heat pump and a high-efficiency gas furnace are about the same, Ratcliff said.
Gas once was promoted for air conditioning but the initial cost of installing equipment has made that prohibitive, Farmer said. However, Roanoke Gas reports "an unprecedented five-year growth pattern" continuing with 1,315 new connections last year. A slowdown in new home construction "was more than offset by conversions to gas from other energy sources," the Roanoke Gas annual report said.
Apco promotes heat pumps for air conditioning and heating and Ratcliff says a growing number of homes have a first-floor unit and another for the second floor.
Because natural gas is gaining new attention for its clean burning qualities, The Wall Street Journal said the fuel is likely to be a centerpiece of U.S. efforts toward reducing growing dependence on oil from the Middle East. Gas prices, subject to fewer environmental problems than oil, have been falling on spot and futures markets.
***CORRECTION***
Published correction ran on March 5, 1991.
Martin Ratcliff is marketing and customer services manager of Appalachian Power Co. His name was incorrectly reported in Sunday's Business section.
Memo: CORRECTION