Is winter , here is cost comparison between Natural Gas and Electricity

Is winter , here is cost comparison between Natural Gas and Electricity 

Natural gas is your best energy value

Remember when energy choices were easy? Electricity was used for lighting, electronics and motors. For heating, the obvious choice was natural gas. In today’s changing energy market, technological innovations and fluctuating energy costs are causing some decision makers to rethink energy options.

To make decisions more complicated, varying billing structures and pricing options make it challenging to understand charges and effectively compare electricity costs to natural gas. The information that follows will help your business or organization sort through the options and make informed decisions. As you will read, historically natural gas has been an excellent energy value and, for most applications, continues to be a better choice than electricity.

The cost difference

Because electricity is billed in kilowatt hours (kWh) and natural gas in therms, it can be challenging to compare costs. Delivery and other charges make it even more difficult to accurately assess cost differences. The following table adjusts for the disparities, showing actual prices for natural gas and electricity for Minnesota commercial/industrial customers. As illustrated, even when a range of electric prices are considered, natural gas prices are consistently two to three times lower than electric prices.

In fact, when all charges are considered, for a $0.06 per kilowatt hour (kWh) electricity rate to be competitive, natural gas would have to cost $1.77 per therm. Historically and currently, natural gas costs are well below that price. Even the highest commercial/industrial natural gas firm rate on record is only $1.38 per therm. The higher cost was the result of 2005’s unusually active and destructive hurricane season. See Table 1 below for an electric versus natural gas price comparison.

Another consideration is that electric utilities nationwide are projecting significantly increased costs as they update aging infrastructure to accommodate increased demand. Those costs will be passed along to the consumer and could even widen the gap between natural gas and electric costs.

Natural gas is cleaner and greener

Environmental impact is another important consideration when choosing fuels. As you can see in (Table 5) below, the significant differences between natural gas and electricity make natural gas the better choice for the environment.

Natural gas – for yesterday, today and tomorrow

As shown in the examples provided, historical and current natural gas prices are significantly lower than the average retail electricity price. Natural gas remains the best value and best all-around energy choice. When you choose natural gas for your facility, you are making a wise decision for your bottom line and the environment.