We installed a pellet stove last year. Even with the pellet shortage we saved money vs. using oil heat. There is no shortage around here this year.
This year DH found a deal on pellets in July, $225/ton so we bought 2 tons. Should last us into March. We haven't had to fill the oil tank (heat and hot water) since April '06.
There are 5 temperature settings and thermostat on the pellet stove (St. Croix), so the temp can be regulated.
One more plus about pellet stoves...they are not hot to the touch (just a bit warm) so they are safer than a wood stove if you have small children.
