This paper investigates a utility's look at the dual fuel heat pump (an electric heat pump coupled with a gas or oil furnace). A study was made to determine the impact of dual fuel heat pumps on utilities, ultimate consumers, and conservation of energy considering such items as life-cycle cost calculations, utility benefits, institutional barriers and fuel sources. Also investigated were seasonal efficiencies, off peak/on peak consumptions, monthly energy consumptions, electrical demand and breakeven point for various utility rates. A comparison is made between the regular heat pump, dual fuel heat pump and a gas or oil furnace with a central air conditioner.