THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, March 4, 1995 TAG: 9503030251
SECTION: REAL ESTATE WEEKLY PAGE: 04 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY JANET DUNPHY, SPECIAL TO REAL ESTATE WEEKLY
LENGTH: Long : 143 lines
They're infiltrating neighborhoods throughout Hampton Roads - white, nondescript pickup trucks loaded with workers and overflowing with backhoes and other equipment.
Virginia Natural Gas can hardly keep up with the requests from residents who want the utility to heat their homes, light their logs and dry their clothes. Much of the company's activity centers in Virginia Beach where those with older homes are converting to gas as their inefficient oil furnaces begin to die.
But some homeowners choose to upgrade to new oil furnaces or heat pumps. Personal choice, not cost, seems to be the deciding factor when selecting a new system.
Many even use several systems to heat water and heat and cool their homes.
If anyone tried to take my oil heat away, they'd have a fight,'' says Grace Berryhill of Chesapeake, who chose not to convert to natural gas. ``It's no worry, it's not dirty and it keeps me warm.''
Berryhill spent almost $5,000 on a new oil furnace last spring.
``It's cleaner and it's not as loud,'' says Millie Wears about her new gas furnace. ``I don't have to worry about running out of oil anymore and it doesn't seem to work as hard to heat as much.''
The Wears household is in the Thoroughgood area of Virginia Beach. They recently spent about $4,100 on a new boiler, water heater, thermostat and fireplace logs.
Still, one contractor who sells all kinds of climate control systems favors the heat pump, particularly the geothermal variety. ``It will beat any fuel that's out there,'' says Chuck Liebold, a sales representative for Climatemakers Ltd. of Virginia Beach.
Geothermal heat pumps are electrically powered and use the natural heat storage of the earth and the groundwater to heat and cool. Liebold says a good geothermal heat pump costs about $5,500 with ductwork.
One thing is clear: The mechanics of the three systems are different and each has its own benefits and drawbacks. All agree that no system will operate efficiently in a home that isn't properly insulated.
Mike Eason, director of marketing at Virginia Natural Gas, says the tanks needed for oil systems are either buried, which presents a possible environmental hazard, or unsightly if above ground. He also says that gas is cleaner and doesn't have to be imported.
In addition, he says, electricity ils often generated by oil or nuclear power.
Stan Pallett of Pallett Oil Co. has arguments, too. He says the gas company loses up to 4 percent of their product through leakage, which the consumer eventually pays for, and that gas systems require more maintenance. Pallett also points out that gas is odorless so leaks can go undetected and it can be harmful to the ozone layer.
Meanwhile, Virginia Power is touting heat pumps, fighting the reputed stigma that efficient ones cost too much to operate. ``A customer in this geographic climate cannot have a better system,'' says Crystal Black, a senior energy efficiency representative with Virginia Power.
The power company describes the heat pump as a refrigeration machine that takes heat from the outside air and pumps it into the home during the winter. Even at 0 degrees Fahrenheit, outside air contains 82 percent of the heat available at 100 degrees. The reverse occurs in the summer.
The process involves a pump, refrigerant, coils and an indoor fan that distributes the heated or cooled air. Black says oil companies and VNG usually show operating cost comparisons to outdated heat pumps, which are less efficient and more costly to run than newer models.
Also, Virginia Power says, the National Weather Service reports that only 17 percent of the heating hours on the Peninsula occur below 35 degrees, which is when the fossil fuel systems are most efficient. That percentage is 10 when applied to the southside area.
Newer alternatives for the home have meant changes for an oil company. ``There is very little new construction that has oil heat unless the people appreciate the benefits of oil,'' Pallett says. ``We lose a lot to the gas company.''
Sometimes people constructing custom-built homes will request an oil system, he says. Otherwise, the bulk of Pallett's business is retrofitting, maintenance, repairs and selling oil.
``We emphasize service,'' he says. ``We feel like that's an advantage to dealing with a small company as opposed to a big utility. All things considered, gas and oil are comparable, but oil has the image of being a dinosaur.''
Newer, more efficient furnace systems, guaranteed oil prices and tank protection plans all make oil a modern alternative, Pallett says. He hopes to shed the prehistoric image by distributing data and promotional information compiled by the New England Fuel Oil Association.
Some people don't need to be convinced. Pallett has about 100 customers with a General Electric model furnace that dates to the 1950s. ``They won't give it up,'' he says. ``It's pretty trouble-free.''
While companies like Pallett Oil are repositioning themselves to compete, VNG is growing. The utility experienced a 5 percent growth rate in 1994, according to Eason, adding 10,000 mostly residential meters.
There were 311 residential conversions to natural gas in January, up from the 245 a year ago. ``Right now, we have more interest than we have the manpower,'' Eason says.
VNG will install pipelines to a single address or an entire neighborhood. The difference is the cost.
``We don't want to make the investment unless someone's going to use the product,'' Eason says. ``We just need enough revenue to cover our cost.''
Typically, a homeowner will request a gas line and the utility responds by asking how many residents will be interested in changing. If a certain percentage of the neighborhood will commit, VNG will put the lines in at no charge.
Otherwise, one household could pay hundreds of dollars for the line.
``Once the line is in there, we see lots of people interested in converting within the year,'' Eason says. If a resident's current system fails and the gas company can't convert him right away, it will set up a temporary propane system.
The residents of Middle Plantation in Virginia Beach have successfully lobbied for gas lines. The civic league organized under the guidance of its president, Mike McQueeny, and more than 100 homeowners out of 419 signed a petition for gas.
``That was sufficient enough for Virginia Natural Gas to blanket the entire neighborhood,'' McQueeny says. But the utility won't start work there until summer.
The homes in Middle Plantation are about 17 years old and most have heat pumps. McQueeny's house has an old one and a new one. The latter will be replaced with gas and he says eventually he will probably convert his dryer and stove.
Other Virginia Beach neighborhoods with residents converting include Thoroughgood, Baylake Pines, Great Neck Meadows, Thalia and Cape Henry Shores. Glen Gariff in Norfolk is getting gas and Wilson Heights, Elpike Manor and Poplar Ridge South in Chesapeake will get their gas lines in late spring.
VNG uses space within the 10-foot right-of-way to bury its pipes. ``One thing we're really cautions about is tearing up someone's yard,'' says Eason.
Whenever possible, the utility uses a ``thumper,'' a machine that installs the pipes horizontally so less digging is required. Homeowners have to alert the company about underground sprinkler systems.
VNG installs the meter while a contractor runs the line to the meter. Then a city inspector checks the gas pressure to make sure there are no leaks.
Any system, whether oil, gas or heat pump, can be a big investment for a homeowner. The oil companies, VNG and Virginia Power all provide financing to credit-approved customers. ILLUSTRATION: [Cover]
[Color illustration]
KEN WRIGHT/STAFF
Staff photo by D. Kevin Elliott
Millie Wears with her new furnace and water heater. Her family
converted last month when the gas pipes arrived in Thoroughgood.
by CNB