The Pearsons' existing home was totally heated with fuel oil, which is now a backup heat source. The existing home now has a plenum heater on the Dual Fuel rate of $0.05 per kWh, which is equivalent to paying $1.34 per gallon for fuel oil. An air source heat pump was also added to the home, increasing efficiencies even further being 300 percent efficient. A Steffes room unit was added in the existing basement on the Storage Heat rate of $0.045 per kWh. Sherry said that this space had been cold and unusable during the winter months but now is warm and comfortable. She has also noticed the house is cleaner and no more smell from the fuel oil furnace and believes it is a healthier environment.

The new addition is also taking advantage of North Itasca Electric’s load control rates with the lower level having a sand bed under the slab. It is heated during the evening hours of 11 p.m. to 7 a.m. at a rate of $0.045 per kWh. There is enough heat in the sand to heat the home until the following night when the process starts over again, charging the sand for the following day. The upper level being connected to the existing ductwork is now on the Dual Fuel rate of $0.05 per kWh.

We did not stop there: a 105 gallon marathon water heater was also installed and placed on the Storage Water heating program for the rate of $0.045 per kWh, saving approximately 60 percent in water heating costs.

Because Tom and Sherry installed storage heating, an energy efficient Marathon water heater and an Air Source Heat pump (installed by a certified contractor), they qualified for rebates in the amount of $1,155.

The Pearsons' heating costs from August 2007 thru July 2008 was $1,969.40 using fuel oil and, in the same period the following year, $2558.28 using fuel oil. Since the switchover in October 2009, their energy bill from North Itasca Electric for heating through December 2009 was $551.58. Their backup fuel oil usage from October 2009 through January 21, 2010 has been approximately 30 gallons at $2.54 per gallon totaling an estimated cost of $76.20. With the winter half over and assuming heating cost to be the same as the first half, the cost of heating their home will be cut in half even with the new 1,344 square foot addition. Rebates received from North Itasca Electric will cover the cost of heating their home this entire winter.