# Heat pump vs. gas furnace and AC on Public Service Co of NM rates (NM)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on Public Service Co of NM electricity rates in New Mexico that needs a new furnace and AC: It depends on your quotes. A high-efficiency cold-climate heat pump costs about $70 a year more to run, so it only comes out ahead if its quote is at least $1,000 below the quote for a new furnace and AC.

- Verdict: **depends on quotes**
- Heat pump yearly running cost vs. a new gas furnace and AC: $70 more
- Break-even quote gap: the heat pump wins over 15 years if its quote is at least $1,000 below the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/nm/public-service-co-of-nm/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/nm/public-service-co-of-nm.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 | – | $800 | $22,500 |
| Heat pump (replaces both) | $10,490 | $7,300–$13,680 | – | $1,090 | $26,900 |
| High-efficiency cold-climate heat pump | $13,680 | $10,030–$18,240 | – | $870 | $26,700 |

## Inputs

- Electricity: 1A (Residential Service) tariff for Public Service Co of NM, effective 2025-11-15, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh. Typical-bill price 17.7¢/kWh, +16% vs. the New Mexico average of 15.2¢/kWh.
- Weather: Bernalillo County, 4,800 heating and 844 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 71%, electricity 19%, propane 5%, other 5% (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 Public Service Co of NM customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on Public Service Co of NM electricity rates in New Mexico that needs a new furnace and AC: It depends on your quotes. A high-efficiency cold-climate heat pump costs about $70 a year more to run, so it only comes out ahead if its quote is at least $1,000 below the quote for a new furnace and AC.

**How much does a heat pump cost to run on Public Service Co of NM's rates?**
About $870 a year for heating and cooling with the High-efficiency cold-climate heat pump option, against $800 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: 1A (Residential Service) tariff for Public Service Co of NM, effective 2025-11-15, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh.

## 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)
- [El Paso Electric Co](https://meterwise.app/nm/el-paso-electric-co/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)
- [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 Public Service Co of NM rates (NM)", updated 2026-11-10, https://meterwise.app/nm/public-service-co-of-nm/heat-pump-vs-furnace/. Data licensed CC BY 4.0.