# Heat pump vs. gas furnace and AC on Central Electric Power Assn rates (MS)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on Central Electric Power Assn electricity rates in Mississippi that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $230 a year to run, so it comes out ahead over 15 years if its quote is no more than $3,400 above the quote for a new furnace and AC.

- Verdict: **depends on quotes**
- Heat pump yearly running cost vs. a new gas furnace and AC: $230 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $3,400 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/ms/central-electric-power-assn/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/ms/central-electric-power-assn.json

## Typical home: costs by option

1,800 sq ft, average insulation, heating with gas, furnace and AC both need replacing.

| Option | Installed (typical) | Installed range | Rebates | Energy per year | 15-year total |
|---|---|---|---|---|---|
| New gas furnace + new AC | $10,340 | $8,090–$12,590 | – | $700 | $20,800 |
| Heat pump (replaces both) | $10,340 | $7,190–$13,490 | – | $470 | $17,300 |
| High-efficiency cold-climate heat pump | $13,490 | $9,890–$17,980 | – | $360 | $18,900 |

## Inputs

- Electricity: Central Electric Power Assn's average residential price in MS (EIA), $0.122/kWh; the winter price of extra kWh is estimated at $0.105/kWh. Enter your own rate for a closer answer. Typical-bill price 12.2¢/kWh, -18% vs. the Mississippi average of 15.0¢/kWh.
- Weather: Kosciusko HCN, 2,776 heating and 1,989 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.51/therm (Mississippi winter average, EIA); propane $3.11/gallon; heating oil $6.15/gallon.
- Homes in this utility's Mississippi area heat with electricity 51%, gas 30%, propane 17%, other 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Mississippi HVAC installer wages (BLS).
- Rebates: not yet checked in Mississippi, so not included.

## Common questions

**Is a heat pump worth it for Central Electric Power Assn customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on Central Electric Power Assn electricity rates in Mississippi that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $230 a year to run, so it comes out ahead over 15 years if its quote is no more than $3,400 above the quote for a new furnace and AC.

**How much does a heat pump cost to run on Central Electric Power Assn's rates?**
About $470 a year for heating and cooling with the Heat pump (replaces both) option, against $700 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: Central Electric Power Assn's average residential price in MS (EIA), $0.122/kWh; the winter price of extra kWh is estimated at $0.105/kWh. Enter your own rate for a closer answer.

## Method

Heating and cooling need from local weather, floor area and insulation; each option's efficiency (heat pumps lose
efficiency in the cold and use backup heat in cold months) turns that into kWh and fuel; electricity is priced
through the utility's tariff; installed costs come from published ranges. Full method: https://meterwise.app/about/index.md

Estimates for a typical home, not a quote or financial advice.

## Other Mississippi utilities

- [Coast Electric Power Assn](https://meterwise.app/ms/coast-electric-power-assn/heat-pump-vs-furnace/index.md)
- [Dixie Electric Power Assn](https://meterwise.app/ms/dixie-electric-power-assn/heat-pump-vs-furnace/index.md)
- [East Mississippi Elec Pwr Assn](https://meterwise.app/ms/east-mississippi-elec-pwr-assn/heat-pump-vs-furnace/index.md)
- [4-County Electric Power Assn](https://meterwise.app/ms/4-county-electric-power-assn/heat-pump-vs-furnace/index.md)
- [City of Holly Springs](https://meterwise.app/ms/city-of-holly-springs/heat-pump-vs-furnace/index.md)
- [Magnolia Electric Power Assn](https://meterwise.app/ms/magnolia-electric-power-assn/heat-pump-vs-furnace/index.md)
- [Entergy Mississippi](https://meterwise.app/ms/entergy-mississippi/heat-pump-vs-furnace/index.md)
- [Mississippi Power Co](https://meterwise.app/ms/mississippi-power-co/heat-pump-vs-furnace/index.md)
- [Pontotoc Electric Power Assn](https://meterwise.app/ms/pontotoc-electric-power-assn/heat-pump-vs-furnace/index.md)
- [Prentiss County Elec Pwr Assn](https://meterwise.app/ms/prentiss-county-elec-pwr-assn/heat-pump-vs-furnace/index.md)
- [Singing River Elec Cooperative](https://meterwise.app/ms/singing-river-elec-cooperative/heat-pump-vs-furnace/index.md)
- [Southern Pine Electric Cooperative](https://meterwise.app/ms/southern-pine-electric-cooperative/heat-pump-vs-furnace/index.md)
- [All Mississippi utilities](https://meterwise.app/ms/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on Central Electric Power Assn rates (MS)", updated 2026-11-10, https://meterwise.app/ms/central-electric-power-assn/heat-pump-vs-furnace/. Data licensed CC BY 4.0.