"A Fossil Fuel Choice--To Manufacture Gas Or Generate Electricity" ? Introduction

The growing national concern over energy has aroused a great deal of interest in the most efficient and least costly way to use our remaining fossil fuel reserves. A number of studies have been published which compare the overall thermal efficiency and cost of gas and electric energy. These studies have been carried out by a wide variety of organizations including Oak Ridge National Laboratory, The Rand Corporation, The Stanford Research Institute, and The Institute of Gas Technology. This paper is an attempt, by PGandE, a large combined gas and electric utility serving most of the northern and parts of central California, to compare the cost and efficiency of gas and electric energy for certain residential appliances using actual operating data and financial statistics for the year 1974, and thereby develop some guidelines for future energy developments utilizing these limited fossil resources. The appliances chosen for the study were kitchen ranges, clothes dryers, hot water and space heaters. These appliances were selected because they can be served with either gas or electricity and they account for approximately one-third of PGandE's total residential electric sales and nearly all of PGandE's residential gas sales.