Venting/Flue Gas Management Benefits
To address the problem of premature corrosion,
GTI led an industry-wide effort to develop new venting guidelines
for brad application. Created with the aid of GRI’s VENT-II
computer program, developed by Batelle-Columbus Laboratories, these
guidelines included updated installation instructions and vent-sizing
tables designed for mid-effiency, fan-assisted natural gas furnaces.
GTI was interested in the impact these guidelines were having on
the furnace industry.
ERC Policy & Assessment Group provided to
GTI an evaluation of the benefits and economic impacts of the GTI
Venting/Flue Management Project. To determine the benefits of the
guidelines to industry, the net present value of the actual annual
repair costs of mid-efficiency, fan-assisted furnaces systems sold
from 1980-2000 were compared versus estimated costs likely to have
been incurred without the benefit of the venting guidelines. Actual
furnace repair costs were estimated based on corrosion levels identified
in furnace inspections and current information on equipment replacement
and repair costs incurred by consumer, utilities, and manufacturers.
It was determined that without the support of the GTI venting guidelines,
consumers and industry saved approximately $700 million in repair
Compared with the total GTI investment of
$5.2 million, the benefit-cost ratio is 134 to 1. The incremental
benefits of the GTI-sponsored venting research amounts to $145 in
savings for each furnace system installed.
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