Dear Homeowner:

This letter is to confirm our communication to you on the upcoming Department of Energy’s regulation requiring a 30 percent increase in the minimum Seasonal Energy Efficiency Ratio (SEER) for residential air conditioners and heat pumps that will go into effect January 23, 2006. 

What this means to you is that as of January 23, 2006, to meet just the basic regulation requirements you should purchase an air conditioner or heat pump with a minimum rating of 13 SEER and as of that date air conditioning and heating manufacturers will not be allowed to manufacture equipment that does not meet those specifications. 

The reason for this new regulation is to save consumers money and better protect the environment.  With the enactment of this regulation the Department of Energy has projected consumers will save an estimated 3.4 billion dollars in energy costs and avoid the construction of 150 power plants by 2020 when the new units are expected to be in wide use.  Air conditioners and heat pumps account for two-thirds of the electricity use during the peak summer demand periods. 

Even though you will not be required to meet these standards today, a purchase of any unit with a lower SEER rating will not realize the benefits of the 2006 regulation.  It is possible that the lower efficiency equipment not meeting the 2006 requirements may lower the future resale value of your home.  With a purchase of a 13 SEER or greater unit there will be a gain in energy efficiency, approximately 30 percent, a home cooling/heating system that will meet the requirements of 2006 and into the future, and a monthly utility bill savings over the lesser SEER equipment.