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Natural gas engine-driven heat pumps (GHPs) are an important high-efficiency cooling and heating option for commercial buildings when considering electric-demand reduction initiatives. GHPs use engine heat recovery to supplement heating output to maintain both indoor supply air temperatures and heating capacity, which can be a problem with current electric heat pumps in cold climates. The GHP’s rated heating efficiency (COPg > 1.0) exceeds the most efficient fuel-fired furnaces while reducing peak electric demand. GTI Energy, Frontier Energy, and The Levy Partnership completed a cold climate field study of an innovative GHP rooftop design at a small grocery store in Buffalo, NY. This design can be used as a like-for-like replacement of conventional packaged rooftop units (RTUs). Performance data was collected over 18 months and analyzed to quantify energy savings, peak electric demand reduction, and economic benefits relative to other rooftop heating and cooling equipment.