Gas Furnace Review

QUESTION:

My neighborhood is all electric, including heat pump for heating and cooling. The utility company is bringing gas to the neighborhood now, and I am receiving bids from several contractors for a gas furnace, A/C, and gas water heater. Three companies have told me that converting from electric to gas water heater is the most effective cost savings, with as much as a 75% reduction in annual water heat costs. The sticker on my 66-gal electric tank rates the unit for $534 per year, and each company estimates with a 50-gal gas-fired tank, my annual costs would be $125 per year.
A fourth company whose estimate for the furnace and A/C is by far the least expensive is saying that I should not convert to a gas water heater. They say I would need a larger capacity tank than I have currently, that the electronic components on a gas furnace break down, and that my annual cost saving would be minimal.
My question is this: who's right? If this last company is wrong about the water heater, can I trust them to properly install the furnace and A/C? I'm already leery of the fact that they are the low bidder by far on the furnace and A/C. I've checked their references and they get rave reviews, but these are customers that the company told me to call. I'm waiting to hear back from the BBB on this company.
Should I get a gas water heater? Is a 50-gal gas-fired tank the right size if I currently have a 66-gal electrically heated tank? Is there significant cost savings with a gas water heater?

ANSWER:

I'm a service technician for the largest gas company in Canada. I also install air conditioning and furnaces, as well as boilers, water heaters, fireplaces,....... In most new houses, a 50 gallon (U.S., not Imperial gallons) water heater is installed. This will meet the needs of the average family. The reason electric tanks are bigger is because their recovery time is considerably longer. A 50 gallon gas heater will give you hot water in an hour, as opposed to an electric which can take up to 3 hours(so I've been told by users. I've never had an electric). The cost savings are dramatic. Hydro is much more expensive than natural gas. As for constant breakdowns, you probably don't have any chimneys in your house, so you'll need a power vented type, which vents out a side wall with 2" ABS pipe, or 3 " if it's a long run. The gas company will likely rent you the tank, so you need not worry about repair costs. Also, they don't break down that often. The GSW superflue 50 is a common model. It had problems with ignitor sensors not recognizing the pilot flame, which in turn wouldn't allow the main burner to ignite, but GSW is aware of this and has made improvements to it's heaters. Definitely convert any and all appliances to natural gas , then sit down with your wife and decide how to spend your extra cash


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