During low winter temperatures, electric resistance heat in aggregate can contribute to peak power events for the electric utility. This study examines the concept of using oversized variable capacity heat pumps to eliminate the need for backup electric heat. Field sites in Orlando, FL served as a basis for the investigation. Results of the field study compare the usage of backup electric heat, annual energy consumption, peak power demand, dehumidification performance, and system cost between the variable capacity and baseline, single speed systems.