When the price of one fuel rises relative to another, it may make sense to consider switching. Some industries, which use large quantities of energy, equip their operations so fuel changes can be made quickly and easily. Homeowners face more of a challenge. Changing home fuel sources often involves a new furnace and other alterations - assuming an alternative fuel source is available.

For many years, homes in the Northeast have had the choice of electricity and heating oil, while people in most of the rest of the country have selected natural gas or electricity. However, with the expansion of gas transmission networks, more and more residents of the Northeast now can consider natural gas as a residential fuel choice.

A practical way to compare the cost of different types of heating sources is on the basis of their energy content, as measured in British Thermal Units (BTU). While costs for all major energy forms – heating oil, natural gas and electricity – have risen since the beginning of the decade, on a price-per-million BTU basis, natural gas remains the most economical form of residential heating, followed by heating oil.

Many factors come into play when determining the most economical way to heat your home. The cost of fuel is just one of them. A heating contractor familiar with a variety of systems can help you make a decision. Helpful information, including data on comparative fuel costs in your area, also is available from several Web sites.