| Dual Fuel Program to continue
The co-op will of course continue to serve existing dual fuel members and we will continue to connect new dual fuel systems as members request it, as we have in the past. Just no rebates. However, we are strongly encouraging new systems to have full-house fossil fuel backup. We will still accept dual fuel systems with a non-automatic backup, such as wood, as long as they are installed in a year-around residence, but remember there is a higher electric rate for such non-automatic systems. Systems designed with automatic, whole-house backup are clearly preferable as they will be more able to comply with program changes we will see in the future, such as longer control times.
Control times to increase
We anticipate that control times for dual fuel systems will increase. Last year we controlled about 115 hours during the entire heating season. We will likely see somewhat longer controls this coming year, and we expect to see control times double by 2010. Again, good reason to design dual fuel systems with automatic, whole-house backups.
Rate increases coming
The cost of energy for the dual fuel program is rising and our dual fuel rate will follow. In the current energy market, it is impossible to forecast accurately, but we expect to see a steady increase in dual fuel rates over the next three years. For this year the rate will remain at the present 4.2¢/kWh. For 2009, we expect the rate to be a minimum of 5.0¢. For 2010, at least 5.4¢, and a rough estimate of 2011 dual fuel rate would be around 5.9¢
Of course the market will affect these prices and may drive them higher. And remember that the non-automatic backup dual fuel rate will continue to be .3¢ higher.
The bottom line is that electric heat on REA’s Off Peak energy rates for dual fuel will continue to be significantly lower than the general service rate, at least for the foreseeable future, and heating with dual fuel is still significantly cheaper than LP and fuel oil at their present prices.
August 1st changes
For members in the process of installing a dual fuel system, and have notified the REA office, we will honor the rebates that were in effect when they started their project, even if they have not been actually completed by the August 1st deadline.
Again, the only change will be that no rebates will be offered for new dual fuel systems. Rebates for heat pumps, storage heat and Marathon water heaters will remain. Please feel free to give the office a call if you have any questions.
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