# Heat pump vs. gas furnace and AC on El Paso Electric Co rates (NM)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on El Paso Electric Co electricity rates in New Mexico that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $120 a year to run, so it comes out ahead over 15 years if its quote is no more than $1,800 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: $120 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $1,800 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/nm/el-paso-electric-co/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/nm/el-paso-electric-co.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 | $10,490 | $8,210–$12,770 | – | $510 | $18,200 |
| Heat pump (replaces both) | $10,490 | $7,300–$13,680 | – | $390 | $16,400 |
| High-efficiency cold-climate heat pump | $13,680 | $10,030–$18,240 | – | $300 | $18,200 |

## Inputs

- Electricity: El Paso Electric Co's average residential price in NM (EIA), $0.102/kWh; the winter price of extra kWh is estimated at $0.090/kWh. Enter your own rate for a closer answer. Typical-bill price 10.2¢/kWh, -33% vs. the New Mexico average of 15.2¢/kWh.
- Weather: State Univ HCN, 2,675 heating and 2,059 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.01/therm (New Mexico winter average, EIA); propane $2.99/gallon; heating oil $6.15/gallon.
- Homes in this utility's New Mexico area heat with gas 58%, electricity 32%, propane 7%, other 3% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and New Mexico HVAC installer wages (BLS).
- Rebates: not yet checked in New Mexico, so not included.

## Common questions

**Is a heat pump worth it for El Paso Electric Co customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on El Paso Electric Co electricity rates in New Mexico that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $120 a year to run, so it comes out ahead over 15 years if its quote is no more than $1,800 above the quote for a new furnace and AC.

**How much does a heat pump cost to run on El Paso Electric Co's rates?**
About $390 a year for heating and cooling with the Heat pump (replaces both) option, against $510 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: El Paso Electric Co's average residential price in NM (EIA), $0.102/kWh; the winter price of extra kWh is estimated at $0.090/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 New Mexico utilities

- [Central New Mexico El Coop, Inc](https://meterwise.app/nm/central-new-mexico-el-coop-inc/heat-pump-vs-furnace/index.md)
- [Central Valley Elec Coop, Inc](https://meterwise.app/nm/central-valley-elec-coop-inc/heat-pump-vs-furnace/index.md)
- [Continental Divide El Coop Inc](https://meterwise.app/nm/continental-divide-el-coop-inc/heat-pump-vs-furnace/index.md)
- [Farmers Electric Coop, Inc](https://meterwise.app/nm/farmers-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Jemez Mountains Elec Coop, Inc](https://meterwise.app/nm/jemez-mountains-elec-coop-inc/heat-pump-vs-furnace/index.md)
- [Kit Carson Electric Coop, Inc](https://meterwise.app/nm/kit-carson-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Lea County Electric Coop, Inc](https://meterwise.app/nm/lea-county-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Navajo Tribal Utility Authority](https://meterwise.app/nm/navajo-tribal-utility-authority/heat-pump-vs-furnace/index.md)
- [Otero County Electric Coop Inc](https://meterwise.app/nm/otero-county-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Public Service Co of NM](https://meterwise.app/nm/public-service-co-of-nm/heat-pump-vs-furnace/index.md)
- [Southwestern Electric Coop Inc](https://meterwise.app/nm/southwestern-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Xcel Energy (Southwestern Public Service)](https://meterwise.app/nm/xcel-energy-southwestern-public-service/heat-pump-vs-furnace/index.md)
- [All New Mexico utilities](https://meterwise.app/nm/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on El Paso Electric Co rates (NM)", updated 2026-11-10, https://meterwise.app/nm/el-paso-electric-co/heat-pump-vs-furnace/. Data licensed CC BY 4.0.