40 gal just not enough: Replacing water heater for 2400 sq home. Family of 2 adults + 2 children

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I pay 4.36, regular, I hope its not as some say, near 5 by 4th of july, this is the making for a long big recession especialy to hurt the lower class, I already see very bad effects.
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Many of us have already cut back in other areas in anticipation of the next season home heating. At today's prices, I'll be paying an extra $1700 over the last year. That has to come from cutting back in other areas, like eating out, vacation, wear those shoes a little longer. I'd cut back on haircuts, but I eliminated them about three years ago.
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wrote:

Hi Edwin,
Few of us realize what lies ahead. It's not just higher gasoline prices, but rising home heating and cooling costs and higher food prices as well. Just about everything we purchase will be more expensive due to increased energy and transportation costs.
In just the past two years, the price of gasoline, home heating oil and diesel has doubled and by fall that will likely be true of natural gas. Thermal coal prices in some parts of the country have just about tripled in the past year which, in combination with natural gas, will send electricity prices upward. There will be no escaping it, no matter which way you turn.
Cheers, Paul
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Here's a discussion of home heating oil in the great state of Maine:
http://ap.google.com/article/ALeqM5jB1iz_v2c5NmDIa0f6zV5X0VajugD911E7P80
I expect you'll hit the $5.00 a gallon mark sometime this fall and I'm even hearing talk of $6.00, which in light of the recent run-up in crude is probably not out of the question.
I'm currently paying $1.299 per litre/$4.92 a gallon, but that price has been steadily creeping upward week after week; last year, I was locked in at $0.889 a litre or $3.36 a gallon.
In '07-'08, I used a total of 702 litres/185 gallons of fuel oil for space heating and domestic hot water purposes and now that my DHW is pre-heated by a small electric tank, my consumption this coming year should fall below 400 litres/105 gallons. At this point, heating oil prices could double or triple again and the financial impact would be minimal.
Cheers, Paul
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On Sun, 08 Jun 2008 20:27:18 -0300, Paul M. Eldridge

Just to flesh this out a bit more...
http://www.bloomberg.com/apps/news?pid 601072&refer=energy&sid¤kOXcpI3dQg
Note the following quote is a little out of date:
``At $4 per gallon gas, $125 per barrel oil and $10 per million Btu natural gas, a lot of activity becomes uneconomical,'' says Mark Zandi, chief economist at Moody's Economy.com..."
Crude oil is now trading between $135.00 and $140.00 a barrel and the Henry Hub and NYC gate spot prices for natural gas are $12.71 and $14.09 per MM BTU respectively.
Cheers, Paul
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Don't power companies buy coal via long-term contracts--not on the spot market?
--
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Jonathan Grobe wrote:

Yes, but contracts continually expire and new ones must be negotiated at prevailing prices...
Fuel cost surcharges are standard in virtually all markets so if one watches carefully the effects will undoubtedly start to become apparent w/ time...
--


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On Mon, 9 Jun 2008 16:26:37 +0000 (UTC), Jonathan Grobe

Hi Jonathan,
As dpb pointed out, supply contracts allow utilities to purchase coal at a fixed price -- or at a periodically reset price if they contain escalator clauses -- but when they expire the new negotiated price will reflect current market conditions; hedges or multiple contracts that expire at different times will help soften the blow, but they can't put off the inevitable. Higher transportation costs are another contributing factor.
A year ago, my utility was purchasing thermal coal at $60 per metric tonne; today, that has risen to $130 per tonne and the general expectation is that it will be heading higher. They've applied for a 12.1 per cent increase and are negotiating with the PUC to establish a separate fuel rider, which tends to suggests they expect greater long-term price volatility.
Cheers, Paul
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$4.15 for regular here in upstate NY.
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Yeah? That was Friday, what is it now?
R
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http://www.kcgasprices.com/index.aspx?s=Y&fuel=A&area=Kansas+City+-+Central&station=All+Stations&tme_limit $&site=KC&srch=0&list=0
Ouch.
R
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$3.79 Monday 5pm.
s
wrote:

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$3.999 in Shawnee KS. That's getting pretty close to 4 bucks.
message wrote:

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Yeah, but when it's $4.05 everywhere in Kansas City, he'll be telling us he buys his gas at Habib's Gas & Go, home of near beer and near gas, for only $3.85. ;)
R
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And i suppose in your simple mind, that wouldn't count as being still under $4 in my area eh?
s
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I can get new items at flea markets, but I'm not about to claim that is the "going rate".
This from the link I posted above for Kansas City. Today      3.931 Yesterday     3.937 One Week Ago     3.857 One Month Ago     3.586 One Year Ago     2.914
You have to understand that I am not thrilled about what is happening with gas prices any more than you are, and if there's any bright spot to be had in this situation I'll look for it. The bright spot here seems to be that you're in the same leaky boat with the rest of us. ;)
R
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Sounds about right. KC is always 6 - 7 cents less than Jo Co because of KS tax. I always fill up if I'm over there.
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I hear ya. $3.77 tonight. Cleveland , Missouri. Put damn near FIFTY dollars worth in a freakin Saturn!
s

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Now we are suposed to believe you moved from KC to Missouri, give it up.
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What? They guy's not allowed to travel?
R
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You do understadn that KC IS in Missouri and Cleveland is a small town on the south side of KC, right?
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