# Heat pump vs. propane furnace and AC on Powder River Energy Corp rates (MT)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft propane-heated home on Powder River Energy Corp electricity rates in Montana that needs a new furnace and AC: A high-efficiency cold-climate heat pump comes out ahead here even with a high quote: about $15,100 less than a new furnace and AC over 15 years at typical prices, and $1,240 a year less to run.

- Verdict: **heat pump ahead at any quote**
- Heat pump yearly running cost vs. a new propane furnace and AC: $1,240 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $18,600 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/mt/powder-river-energy-corp/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/mt/powder-river-energy-corp.json

## Typical home: costs by option

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

| Option | Installed (typical) | Installed range | Rebates | Energy per year | 15-year total |
|---|---|---|---|---|---|
| New propane furnace + new AC | $11,490 | $8,990–$13,990 | – | $1,870 | $39,600 |
| Heat pump (replaces both) | $11,490 | $7,990–$14,990 | – | $880 | $24,700 |
| High-efficiency cold-climate heat pump | $14,990 | $10,990–$19,980 | – | $630 | $24,500 |

## Inputs

- Electricity: Powder River Energy Corp's average residential price in MT (EIA), $0.127/kWh; the winter price of extra kWh is estimated at $0.091/kWh. Enter your own rate for a closer answer. Typical-bill price 12.7¢/kWh, -10% vs. the Montana average of 14.0¢/kWh.
- Weather: Sonnette 7 Sw, 7,750 heating and 416 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $0.85/therm (Montana winter average, EIA); propane $2.14/gallon; heating oil $6.15/gallon.
- Homes in this utility's Montana area heat with propane 43%, electricity 30%, gas 18%, other 10% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Montana HVAC installer wages (BLS).
- Rebates: not yet checked in Montana, so not included.

## Common questions

**Is a heat pump worth it for Powder River Energy Corp customers?**
As of November 2026, for a typical 1,800 sq ft propane-heated home on Powder River Energy Corp electricity rates in Montana that needs a new furnace and AC: A high-efficiency cold-climate heat pump comes out ahead here even with a high quote: about $15,100 less than a new furnace and AC over 15 years at typical prices, and $1,240 a year less to run.

**How much does a heat pump cost to run on Powder River Energy Corp's rates?**
About $630 a year for heating and cooling with the High-efficiency cold-climate heat pump option, against $1,870 for New propane furnace + new AC.

**What electricity price does this use?**
Electricity: Powder River Energy Corp's average residential price in MT (EIA), $0.127/kWh; the winter price of extra kWh is estimated at $0.091/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 Montana utilities

- [Flathead Electric Coop Inc](https://meterwise.app/mt/flathead-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Lower Yellowstone R E A, Inc](https://meterwise.app/mt/lower-yellowstone-r-e-a-inc/heat-pump-vs-furnace/index.md)
- [Montana-Dakota Utilities Co](https://meterwise.app/mt/montana-dakota-utilities-co/heat-pump-vs-furnace/index.md)
- [Missoula Electric Coop, Inc](https://meterwise.app/mt/missoula-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [NorthWestern Energy](https://meterwise.app/mt/northwestern-energy/heat-pump-vs-furnace/index.md)
- [USBIA-Mission Valley Power](https://meterwise.app/mt/usbia-mission-valley-power/heat-pump-vs-furnace/index.md)
- [Yellowstone Valley Elec Co-op](https://meterwise.app/mt/yellowstone-valley-elec-co-op/heat-pump-vs-furnace/index.md)
- [Fergus Electric Coop, Inc](https://meterwise.app/mt/fergus-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [All Montana utilities](https://meterwise.app/mt/index.md)

## Cite this page

MeterWise, "Heat pump vs. propane furnace and AC on Powder River Energy Corp rates (MT)", updated 2026-11-10, https://meterwise.app/mt/powder-river-energy-corp/heat-pump-vs-furnace/. Data licensed CC BY 4.0.