Bob, I think one big problem, and perhaps the only problem, is that the backup is electrical resistance heat. You're electricty cost, at
14.5c KWH is substantially higher than average. Mine here in NJ is a little higher than that.Here's a link to two calculators from a previous thread. The first one was one I found, the second one Bubba provided. Using them, you can input the cost of electricity, cost of gas, heat pump efficiency, furnace efficiency and find the temperature point below which it costs less to generate heat with gas. Whether a heat pump is cost effective overall is going to depend on how much heat you generate above that temp, versus how much you generate below it. And keep in mind that you could be generating a lot more heat below that temp, depending on how cold it gets. For example, it would probably take a couple days of outside temps in the 40s to equal one day's worth of heat required in the 20s.
So, with a modern unit, and assuming your gas is $1.50/therm, a heat pump should be efficient compared to gas down to somewhere between 22 and 32F. I think the thing that is killing you is that the backup is electric resistance heat. With your high electricity cost, that doesn't have to come on all that much to cost so much that you woulld in fact be better of with just a gas furnace. Also, this calculator is figuring out when it's more cost effective to go to the alternate fuel, not when you HAVE to go. Meaning, below some temp, the heat pump can no longer supply all the heat that is required. And it sounds like for your system, that point is close to 32F than 22F.
I'm curious. With such huge bills, why haven't you just put in a gas furnace? Or a dual fuel system, where you'd switch to gas below the transition temp? With $700/mth winter bills, the payback would be fast.