Natural Gas vs. Electrical Appliances Fuel Cost

Cost Basis for Natural Gas

• Natural gas fuel costs are based on the cost per therm set your natural gas energy provider. Prices vary from natural gas utility companies and within states. For example, the average cost per therm might be 68 cents in California and 75 cents in Wisconsin. However, one "company A" might charge less per therm than "company B." This is why it is always important to shop around and explore options. The per therm rate can fluctuate and change each month, based on market prices.

Cost Basis for Electricity

• Electricity is priced and billed on a kilowatt-hour (kW) basis. Like natural gas, prices vary from state-to-state and provider-to-provider. Electricity kW prices also vary with seasons. For example, prices increase during the summer electricity use increase for powering air conditioners. Explore options for flat-rate billing or fixed kW prices to assist in anticipating and budgeting your electricity bill.

BTU Comparison

• A BTU (British Thermal Unit) is the standard measurement used to express how much heat or energy an appliance disburses. Furnaces, water heaters, stoves, refrigerators and air conditioners are examples of appliances that have a BTU rating, which you can usually find on the back of the appliance. To compare BTUs for natural gas and electricity, you have to convert their standard measurements -- therms and kilowatts -- into BTUs. One therm of natural gas generates 100,000 BTUs. One kilowatt-hour consumes 3,413 BTUs.

Natural Gas Oven - Fuel Use and Cost

• If you were to run the oven on a natural gas stove for one hour, at a temperature of 350 degrees F, it would use .112 therms of fuel. If the price per therm were 70 cents, it would cost about 8 cents to run the stove for one hour using natural gas.

Electric Oven - Energy Use and Cost

• If you were to run the oven on an electric range for one hour, at a temperature of 350 degrees F, it would use 2.0 kWs of power. If the price per kW were 8 cents, it would cost 16 cents to run the oven for one hour using electricity.

Cost Comparison

• Using the oven example, it would cost twice as much to run the oven with electricity versus gas. Find out the rates charged by your utility companies for gas and electricity services. Convert your usage from kWs and therms to BTUs to see the difference. You might find that you can save money by switching some appliances from gas to electricity, or vice versa, and explore programs to lock in prices for therms or kWs to get the best rates and lower your bills.