Fuel Cost Comparison
Switching from electricity to natural gas is good for your business.
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Cost Comparison Chart - Natural Gas vs. Electricity*
May 2008 |
| |
$/MMbtu |
cents/kWh |
| Natural Gas |
$ 12.40 |
|
|
vs. |
|
| Electric
|
| Watt Hour |
$31.61 |
10.79 |
| Small Load (Less than 100 kW) |
$25.73 |
8.78 |
| Medium Load (Greater than 99kW but less than 400 kW) |
$26.05 |
8.89 |
| Large Load (Greater than 399 kW but less than 1,000 kW) |
$32.70 |
11.16 |
| Very Large Load (Greater than 999 kW) |
$32.64 |
11.14 |
| | *Comparison based on the May 2008 Fuel Price Survey. Bundled tariff electric rate comparison calculated by Nicor Gas Business Customer Support. |
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Cost Comparison Chart - Natural Gas vs. Other Fossil Fuels*
May 2008 |
| |
$/MMbtu |
$/Gallon |
$/Therm |
| Natural Gas |
12.40 |
|
1.24 |
|
vs. |
|
| Propane |
28.35 |
2.60 |
|
| #2 Fuel Oil |
30.07 |
4.18 |
|
| | *May 2008 survey of fuel suppliers, selected customers, and wholesale price indices by Nicor Gas Business Customer Support. |
Benefits of Natural Gas*:
- Generally costs less than electricity
- Provides high energy content
- Can be used to generate electricity onsite
- Can provide thermal efficiencies over 80 percent in CHP applications
- Supplies are very reliable
- Equipment is very reliable when properly maintained
Disadvantages of Utility-Supplied Electricity*:
- Higher operating cost
- Supply interruptions are common
- Equipment can be more expensive to install when allowances are made for transformers, motor controls, etc.
- Component failure rates are high relative to gas technology
- Very expensive for bulk heating
- Equipment is difficult to keep clean without damage or expensive protection
*Source: Gas Technology, Summer 2003, Volume 16 - Issue 2
Return to Make the Most of Your Energy Dollars.
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