Projects
Venting/Flue Gas Management Benefits ProjectTo 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 costs. 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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