Dana-
I'm not sure but are you making a case for the electric hot water heater over the NG one?
Do the math, you decide what makes sense for you.
For ME
electric makes absolutely no sense at all!!! It would cost me at least 3x as much to heat with hot water (since I'm heating with ~80% efficiency using the heating system, not in a cheapo standalone tank at 60% efficiency), and electric would give me much slower recovery times etc. etc.
I'm just sayin' to do the math correctly you have to apply the proper efficiency factors, not just the raw fuel-energy equivalents, so that you can compare apples to apples, gallons of HW to gallons of HW, for what price. 1kwh=3413 BTUs only in a lab, not at the output of a hot water heating appliance. But even though the typical gas water heater is sending 40% up the flue and into the surrounding air rather than in the water vs. 10% in the electric tank case, gas is still a heluva lot cheaper in most places.
Put it this way: If you're paying a buck/therm for gas, you'd need to have 5 cent/kwh or less electric rates to be cost competitive with gas.
...or...
If you're paying the national average of ~12cents/kwh, gas would have to cost $2.40/therm or less to beat electricity on cost.
This year my electricity is over 15cents/kwh and my gas is about a buck a therm year. I've not paid less than 12 cents/kwh in nearly 20 years, and I've NEVER paid over $1.75/therm. Never has electric hot water heating been any less than twice as expensive as gas hot water heating in my location. YMMV.
Without knowing your local prices, there's no way of telling what would be the cheaper option for you. But in the vast majority of the US, gas is going to be a MUCH cheaper way to heat hot water- it's not even close. But it might be if your electric rates are exceptionally low, and your gas rates significantly higher than average.