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News Releases 2012
Homes With Natural Gas Appliances Save An Average of $518 Annually
President Touts Benefits of Natural Gas
Natural Gas is Key to Our Nation’s Economic Future
Natural Gas Council Statement on State of the Union Speech
AGA Report Shows U.S. Has Largest Natural Gas Storage in the World
Energy Groups Urge EPA and DOT To Provide Level Playing Field For Natural Gas Vehicles Under New Fuel Economy and Tailpipe Emission Standards
AGA Disappointed With LIHEAP Funding in President’s Budget
AGA Releases 2012 Playbook
Natural Gas Utilities Call For Full Funding of LIHEAP
AGA Praises FERC for Elevating Discussion On Gas-Electric Integration Issues
AGA Welcomes George Lowe as New Vice President of Federal Affairs
AGA Report Details Responsible Natural Gas Development
Executive Order to Speed-up Energy Infrastructure Permitting Process Will Help Natural Gas Customers
Natural Gas Council Asks FERC to Lead Effort Examining Gas-Electric Coordination and Market Rules Affecting Reliability
Calling 811 Before You Dig Can Save Lives
AGA Encourages FERC Dialogue on Gas-Electric Issues
U.S. Natural Gas Reserves At Record Levels
Limited Data on Methane a Fundamental Challenge
AGA Encouraged by Obama’s Executive Order
AGA to Host LNG 17
Natural Gas is the Best Heating Value
Natural Gas Utilities Reward Safety
Utilities Take Action to Further Improve the Safety of Natural Gas Distribution Systems
Customers See Benefits of Natural Gas Abundance
United States Leads Worldwide Conversation About Responsible Resource Development
Natural Gas Utilities: Building and Enhancing an Advanced Energy Delivery System
ARPA-E Program Will Spur Natural Gas Vehicle Innovation
McCurdy: Developing the market for natural gas vehicles enhances both our energy security and our economy
NPC Study Emphasizes Significant Opportunities
LNG 17—Open for Registration
Building A 21st Century Infrastructure In Communities Across the Nation
AGA Response to Romney Energy Plan
AGA Applauds White House Fuel Efficiency Standards
White House Executive Order Will Increase Competitiveness of U.S. Manufacturing
Obama Outlines Future with Natural Gas
Natural Gas Fueling Infrastructure Models Vary
AGA Says Customers will Benefit from Low Prices Again this Winter
Stephen Ewing Receives AGA’s Distinguished Service Award
Questar Corp. Chairman, President & CEO Ronald Jibson Elected 2013 AGA Chairman
AGA Report Envisions a Decade of Natural Gas Market Stability
Natural Gas Utilities Activate Mutual Assistance Program In Response to Hurricane Sandy
AGA Congratulates President Obama, Encourages Smart Energy Policies
AGA Commends NARUC For Continued Recognition Of The Benefits Of Natural Gas
Utilities Work Towards Increased Safety For Natural Gas Infrastructure
Powerful Step To Help Reduce Barriers For Natural Gas Vehicles
Delivering the Promises of Natural Gas in 2013 and Beyond
DOE Report Affirms Role of Natural Gas as a Foundation Fuel
AGA Applauds Policy Guidance on Cyber Threat Information Sharing and Antitrust
Utilities Work With Congress to Continue Safe Delivery of Natural Gas
Thomas E. Skains, Piedmont Natural Gas, Receives AGA’s Distinguished Service Award


AGA Contacts:
Jennifer O’Shea, 202-824-7023
Jake Rubin, 202-824-7027

 Natural Gas is the Best Heating Value   

Natural Gas Is America’s Best Home Value When Compared to Other Energy Sources

Washington, D.C. — The American Gas Association (AGA) today announced that 2012 residential space heating and water heating costs show natural gas may cost less to use in the coming year than other major home energy sources. The comparison of cost estimates between natural gas and other fuels are based on the U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy forecast, published in the April 26, 2012 Federal Register.

“Natural gas offers tremendous value to the 177 million Americans who use it every day to heat their homes, warm their water and cook their food, and this forecast underscores the reality of that in dollars and cents” said Dave McCurdy, president and CEO of AGA. “At at time when prices at the pump are rising and many are still struggling, natural gas is a bright spot bringing consumers real savings.”

A piece of equipment with a higher annual fuel utilization efficiency (AFUE) rating provides greater savings for customers. For example, a 96 percent AFUE natural gas furnace provides the lowest-cost space heating option for homeowners, followed by an 80 percent AFUE natural gas furnace. Both offer significant annual operating cost savings over comparable space heating options.

See below for a table listing estimated home-heating and water-heating cost comparisons.

SPACE HEATING ANAYLSIS SUMMARY: The space heating analysis is based on a 2,072 square foot house located in St. Louis and represents a 5,000 Heating Degree Day location. The house meets the energy conservation provisions in the 2012 International Residential Code and the space heating equipment is selected from the AHRI online directory. The 96% AFUE natural gas furnace provides the lowest annual operating cost followed by the 80% AFUE gas furnace. 


(Annual operating cost)

Heating Equipment Type

5000 Heating Degree Days

96% AFUE Gas Furnace


80% AFUE Gas Furnace


7.7 HSPF Electric Heat Pump


96% AFUE Propane Furnace


85% AFUE Oil Furnace


80% AFUE Propane Furnace


80% AFUE Oil Furnace


Electric Resistance Furnace



WATER HEATER ANALYSIS SUMMARY: The water heater analysis is based on the equivalent First Hour Rating (FHR), national average energy usage, and the 2012 energy costs as published by DOE. A natural gas 40-gallon and an electric 50-gallon, both conventional storage types, are chosen based on their FHR. The natural gas water heater would provide the lowest annual operating cost.


(Annual operating cost)

Water Heater Type

Annual Cost

40 Gallon Natural Gas (FHR = 74 gallons)


50 Gallon Electric (FHR = 67 gallons)



COMBINATION SPACE HEATING AND WATER HEATER INSTALLAITON: Based on the annual cost analysis for space heating and water heaters, the combination of a natural gas

96% AFUE furnace and storage water heater provides the lowest operating cost space/water heating package.



(Annual operating cost)

Space Heating/Water Heating Type

Annual Cost

Natural Gas: 96% AFUE Furnace & Water Heater


Natural Gas: 80% AFUE & Water Heater


Electric: Heat Pump & Water Heater


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The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. There are more than 71 million residential, commercial and industrial natural gas customers in the U.S., of which 94 percent — over 68 million customers — receive their gas from AGA members. Today, natural gas meets almost one-fourth of the United States' energy needs.

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