More than 61 million American households had natural gas service in 2002, marking a 1.4% increase over 2001, or 887,000 homes, according to the American Gas Association (AGA). Looking at its data, the AGA added that as of 2002 — the most recent year of complete data — 61% of all U.S. households had gas service.

In its 55th Annual Survey of the Natural Gas Utility Industry United States, the AGA found that approximately 14% of the 887,000 new customers in 2002 converted to natural gas from another fuel, with 48% switching away from electric heat, 37% switching from heating oil and the remaining 15% unidentified. Eighty-four percent of all U.S. households using gas in 2002 used gas for house heating purposes.

More data gleaned from the survey showed that nearly seven of every 10 single-family homes built in 2002 featured natural gas heat, marking the continuation of a strong consumer preference for this domestic energy source, the AGA said. Natural gas heat captured 68% of the home-heat share in new single-family homes in 2002, followed by electricity with 28% and heating oil at 3%.

“Natural gas is a clear consumer favorite for home-heating because it is comfortable, reliable and easy to use,” said Bruce McDowell, AGA director of policy analysis. “While most people associate natural gas with home-heating, an increasing number of consumers in both cold-weather and warm-weather states seek gas service to support fireplaces, outdoor grills and other amenities that enhance enjoyment of their homes.”

The AGA added that gas was the most popular home-heating fuel in new single-family homes in most regions in 2002, with the Midwest coming in at 90%. New homes in the West were 89% gas, with the Northeast coming in at 65% and the South logging 48%. Gas single-family homes completed in 2002 registered a 68% market share, a drop of two percentage points from 2001.

However, gas single-family home completions exceeded electric completions for the seventeenth consecutive year. Taking into account both single and multi-family units, the gas share of new housing completions decreased to 64%, compared to 65% the previous year. The overall electric share increased by one percentage point to 33% in 2002.

Other stats uncovered by the survey include the fact that the overall market share for natural gas space heat in existing homes rose slightly to 52% since 1999, while gas water heaters maintained a similar market share as well. Market shares for gas cooking and clothes drying remained at 35 and 22%, respectively.

On the 2002 Low-Income Heating Energy Assistance Program (LIHEAP) front, the AGA found that more than $3.1 billion went to help low-income households pay their energy bills or weatherize their homes. Most of the funding came from LIHEAP, with $1.8 billion in normal appropriations and emergency funds. Utilities, both electric and natural gas, accounted for 25% ($771 million) of the total in the form of discounts, waivers, forgiveness of arrearages, and weatherization programs.

The AGA said it received a large boost for the 2002 survey, noting that a total of 62 natural gas utility companies responded, marking a sizeable increase from the 51 utilities that responded to the 2001 survey. In addition to survey respondents, the AGA said it used Energy Information Administration data and U.S. Bureau of the Census stats.

Copies of the AGA 2002 Residential Natural Gas Market Survey can be ordered for $25 by AGA members or $75 by non-members. For more information, call (866) 986-1131.

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