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Q Can I use a Rite Temp thermostat with a two-stage gas or a two stage electric furnace system (W1 and W2) ?

A Yes but you will need to use one of these thermostats 8010, 8050C, 8082C or the 8085C that are two stage compatible. To hook it up you will hook up the first stage of heat (w or w1) to the "W" terminal and the second stage of heat (w1 or w2) to the "W2" terminal. For a two stage heating system, when heat is called for the thermostat turns on the first stage of heat, if the temperature is not up to the target temperature within 15 minutes, the Ritetemp thermostat turns on the second stage until the target temperature is achieved.