Use the rates you actually pay

Gather current electric and gas bills, applicable tariffs, and relevant adjustments. Identify charges that change with usage and charges that remain regardless of heating choice.

Xcel publishes rate books by service area; the correct account rate still needs confirmation. Other utility customers should use their own provider's tariff. Xcel rate books.

If other gas appliances remain, do not assume a heat-pump installation removes gas account charges. Confirm account closure and any continuing charges with the utility.

Ask for a winter estimate

Request equipment performance under relevant outdoor temperatures, rather than only a mild-weather rating. PNNL's cold-climate sizing guidance addresses equipment performance across temperatures and the home's calculated heating need. PNNL sizing guidance.

Have the provider show how the estimate accounts for the home's heating load, thermostat settings, heat-pump efficiency, furnace efficiency if retained, and backup operation. Ask what happens in both ordinary winter weather and colder periods.

If a proposal recommends switching between a furnace and heat pump, request the approved control strategy and its assumptions. The temperature where another heat source is needed for capacity may differ from the point where another source is cheaper. Have the designer explain both for your equipment and rates.

Compare the decision you are making

Operating cost is one part of ownership. Include installation cost, necessary electrical work, equipment condition, maintenance, and warranties. Keep cooling needs and your goals in view.

If a lower bill is your main reason for buying, require a supported estimate before committing. If you value reducing gas use or replacing failed cooling, those benefits may matter even when the operating-cost comparison is close.

Your next step is to request a side-by-side annual estimate with all assumptions shown and a reasonable range for uncertain inputs. Choose from that household comparison, not a blanket claim that one fuel or technology always wins.