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					Yukon-Kuskokwim Propane Demonstration Project
                      Propane Appliances and Heating Units

Propane is used by more than 60 million people in homes throughout the 50 states. More
than 14 million families use propane appliances. One brand of propane appliances are
made by the Amish, which do not use electricity. Propane appliances are high efficiency,
cost-effective, clean burning and reliable, which on average cost half as much per BTU as
electricity. Propane appliances allow homeowners to maximize their energy dollars.
Propane appliances are considered environmental responsibility because they produce
fewer air pollutants and greenhouse gas emissions than units fueled by fuel oil and

The following table shows annual cost savings when using propane appliances. The
calculations include the costs of propane heat versus electric heat, propane versus electric
water heating, propane versus electric clothes drying and propane versus electric cooking.

   Annual Energy Cost Saving for Propane Appliances Vs Electrical Appliances
         City          Propane Home     Electrical Home   Annual Saving   Saving Over Appliance Life
  Orlando, FL               $1,225             $1,566           $341                       $5,115
  Columbia, SC              $1,383             $1,741           $358                       $5,375
  Tulsa, OK                 $1,577             $1,975           $398                       $5,970
  Indianapolis, IN          $1,686             $2,124           $437                       $6,560
  Madison, WI               $1,984             $2,471           $487                       $7,305
  Portland, ME              $1,927             $2,406           $479                       $7,190
  Sacramento, CA            $1,138             $1,471           $333                       $4,995

The annual energy cost savings can be significant when using propane appliances. These
annual savings will more than pay for the propane appliances over their lifetimes.

                                      Propane Power Appliances

Ranges and Stoves - Cooking with propane can be significantly cheaper than cooking with
electricity. Propane-fueled ovens and ranges give greater control over cooking with precise
temperature control and even heat distribution. Propane offers professional-quality
cooking that is preferred by many chefs over electricity. Unlike electrical appliances,
propane is not affected by power outages. Instant gas flames allow you to cook without
waiting for burners to heat. Propane gas burners also cool quickly.

Dryers - Propane clothes dryers are more efficient and are less expensive to operate - about
half the cost of electric dryers i . After the refrigerator, the clothes dryer uses more
electricity than any other household appliance. Perhaps the most outstanding benefit of a
propane clothes dryer is that it can complete the drying task in about three-quarters of the
time it takes an electric model. Propane dryers quickly reach temperatures needed to dry
clothes and provide moist heat that is less likely to burn or discolor fabrics than electric
dryers, which results in less wear and tear on fabrics. It is best to install a dryer in a
heated space since placing a unit in a cold or damp area makes a dryer work harder and
less efficiently.

Bartz Englishoe and Associates             Page 1 of 3                         January 7, 2008
Yukon-Kuskokwim Propane Demonstration Project
                      Propane Appliances and Heating Units

Refrigerators: A propane refrigerator is an efficient way of cooling food when one is living
off the power grid. Absolutely no electricity is needed. There is little maintenance because
there are no moving parts on a propane refrigerator to wear out. Propane refrigerators use
heat to make cold through the natural cooling power of evaporation and condensation. RV
motor homes typical use propane refrigerators.

Freezers: Propane powered freezers required no electricity, have no moving parts, provide
silent operation and temperature controls. One propane freezer manufacturer states the
cost of operation will very with refrigerator size and room temperatures, but that
homeowners can expect to spend about $10.00 to $15.00 in propane per month (Lower 48).
Another brand states their efficient freezers use approximately 2 gallons or less of propane
per week. Propane freezers do not use Chlorofluorocarbons (CFCs) that deplete the Earth's
Ozone layer.

Central Furnaces: - The largest use of residential energy is for home heating. Propane
furnaces provide warmer air than electric heating systems. An electric heat pump produces
heat (95°F) below body temperature so the air actually feels cool when placing your hand in
front of a vent. A propane furnace heats air to about 120°F to 140°F and operates in short
intervals to minimize operating costs. Heating a home with propane costs half as much on
average than heating with electricity. ii Propane furnaces are 94% efficient compared to
83% oil units. Propane furnaces last 15-20 years, which is 5-10 years longer (on average)
than electric heat pumps. It also costs less to repair a propane gas furnace than an oil or
electric furnace. Propane heating systems can be vented vertically or horizontally, so no
chimney (and the associated costs) is required. Most of today's propane furnaces are
equipped with electronic ignitions that activate the burners only when gas is needed.

Wall/Space Heaters: Vent-free propane-fueled wall/space heaters are 99.9 % efficient. Wall
heaters can include thermostats and heat distribution blowers. Wall heaters produce fewer
air pollutants and greenhouse gas emissions than those fueled by fuel oil and electricity. In
fact, the energy used to power electric heaters produces emissions two to four times higher
than the energy produced to power propane heaters. Propane wall heaters use no
electricity and are ideal for individual rooms since each unit vents directly to the outside.
Space heaters typically include oxygen depletion sensors that automatically turn units off if
oxygen levels drop below specified levels.

Combo-Heaters: Combo-heaters use water heaters to provide space heating. Basically, the
water heater operates conventionally until heat is needed. Hot water then circulates
through a water-to-air heat exchanger coil in the air handler of a furnace and warm air is
distributed throughout the house by ducts. These units can achieve up to 90 percent
efficiencies for both water and central heating.

Full Size Water Heaters - Propane water heaters on average are 42% less expensive to
operate electric heaters. iii Propane water heaters heat twice as much water in an hour as a
comparable electrical model. An electric tank water heater operating at peak performance
can only recover hot water at a rate of 20 gallons per hour compared to propane tank water
heaters, which can have recovery rates of 50 gallons per hour to hundreds of gallons per

Bartz Englishoe and Associates        Page 2 of 3                        January 7, 2008
Yukon-Kuskokwim Propane Demonstration Project
                      Propane Appliances and Heating Units

hour depending on the efficiency factor and the firing rate. Over an average unit's life span
propane gas water heaters can save a five-member household more than $2,300 (Lower 48)
when compared with a similarly sized electric unit. Propane heaters require smaller
storage space and have more accurate temperature adjustment.

Tankless Water Heaters - Homeowners spend 10% - 20% of their annual water heating
costs iv just to keep water hot in their storage tanks. Propane-powered tankless water
heaters (TWH) heat water only when it is needed. TWH reduce standby energy loss, saving
consumers an average of 15%-20% percent over a standard storage water heater. Most
tankless water heaters provide 2 to 3 gallons per minute of hot water and can be used to
heat main showers and sinks. Because tankless models are less subject to corrosion the
expected life span of a TWH to 20 years, twice as long as most storage water heaters.

Micro Co-generators – Propane powered combined heat and power (CHP) co-generator is
new in the United States. Although used in Europe, three CHP units have just recently
received certification for use in the United States. One unit has a maintenance interval of
4,000 hours (once a year). CHP units produce electrical power and heat simultaneously.
The electricity can be used for any household devices and the heat produced can be used for
water heating and/or space heating. CHP systems are extremely efficient at 90%, compared
to about 30 to 40% for electricity from a central power station.

Homeowners that have CHP units can sell excess power back to local electrical utilities.
The Energy Policy Act of 2005 requires public utility commissions to consider net
metering v . New meters allow power to go both ways; 1.) from the power grid into the home
co-generation unit and 2.) from the home co-generation unit to the grid. The Regulatory
Commission of Alaska regulates public utilities, which oversees state regulations that
encourage cogeneration and the guidelines under which homeowners can sell electric power
back to an electric utility.
   U.S. Department of Energy (DOE)
    The DOE estimates that approximately 20 percent of a home's energy costs are spent heating hot
    water. The DOE research indicated a standard 50-gallon electric tank water heater replaced with a
    propane-powered water heater can reduce annual water heating energy costs by more than 50 percent.
    Annual energy costs saving of more than 60 percent can be achieved by installing propane tankless
    water heaters.
    Net metering means that end users can sell unused electricity to the grid, usually at its full retail price.
    Net metering policies generally require that sales to the grid to not exceed purchases from the grid.

Bartz Englishoe and Associates                Page 3 of 3                               January 7, 2008

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