RE: Government Energy Standards:
How Much Will It Cost, How Much Will You Save?

Dear Website Customer:

Those of you who have been around a while like me, know that ever since the oil crisis of the early 70's, our government has struggled with ways to reduce our dependence on foreign oil. So here's the next round!

Today, the House and Senate are on the brink of passing a new energy bill that has language which will direct the Department of Energy to proceed with rulemaking for the air conditioning industry. This change, which goes into effect in 2006, will institute a 12 SEER (Seasonal Energy Efficiency Rating), or a 20% increase above the current standard.

A little historical note here: After much heated debate from both sides, the United States Congress passed into law the National Appliance Energy Conservation Act of 1987. The centerpiece of that legislation set the standard of 10 SEER for all new central air conditioners and heat pumps manufactured since 1992. Previously, there were no minimum efficiency standards in our industry whatsoever.

How much more will the 12 SEER units cost? Most of the major manufacturers make several different models of the 10 and 12 SEER units (calling them standard, deluxe, and so forth), so comparison gets a little complicated. When a dealer quotes you one price for a 12 SEER unit and then you receive another price that's $600 higher for a 12 SEER unit from another dealer, its time to ask some questions.

The first question to ask is are the quotes on the same model unit. Then it's time to consider why the price differential in different models with 12 SEER. The higher priced unit might come with a more sturdy cabinet, it might have a 10 year compressor warranty, it might have additional safety controls, and it might have sound silencing insulation. Think of it as buying basic cable service or extended basic cable service!

How much will you save with a 12 SEER unit? Money savings on utility bills and "return on investment" are always big selling points. Remember, however, these figures are based on averages. Savings boil down to:

Life Styles--do you like it really cold in the summer?
Habits--do you have a programmable thermostat or remember to turn your unit down when you are out?
Insulation--a leaky house and/or leaky ductwork increase cooling costs!

Another major point to understand is that the efficiency rating is based upon a complete engineered system. Simply changing the air conditioning unit outside to a 12 SEER unit does not mean you will have increased efficiency. All components of the system (condenser, furnace, evaporator coil) must match in order for efficiency to be at the advertised level. Think of it as putting a fancy new paint job on a worn out car!

No doubt we will keep seeing changes similar to this one as our government continues the energy conservation battle. If you have any questions or thoughts you would like to discuss on this issue, please e-mail or call me at (214) 631-1010. I'd like to hear from you.

Sincerely,

KAHN MECHANICAL CONTRACTORS

Ann R. Kahn
TACL A370C