We are buying a foreclosed 3 bedroom, 2 bath in a cold and very wet climate (Ketchikan, Alaska 160 inches of rain a year!). House is stripped bare--no furnace, boiler, water heater or oil tank. I'm starting with a blank slate. It does have older hot water radiators in every room but don't know if they work and the condition of the galvanized piping is very questionable. Local electric rate is about 10 cents per kilowatt hour. Heating oil is about $3.50 per gallon. I think LP gas is an option but know nothing about it. Everyone here uses oil furnace, electric baseboard or Monitor type heaters. What would YOU do if it was your house? Considerations are installation costs, operating costs and comfort.