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Q: What is a signing fee and how is my fee used?
A: Your signing fee is a deposit used directly for your first month's heating bill. This helps us negotiate our cost to heating oil providers.
Q: I have a long-term relationship with my heating oil dealer. What advantages will I have if I join the Co-op Power buying group?
A: It's true that many of us have build long-term relationships with our local heating oil dealers. We depend on them to come in the middle of the night when our furnace isn't working. Co-op Power only contracts with full-service heating oil companies who will also provide this essential service. You'd want to join the buying group if you're interested in paying less per gallon and less for your service contracts. As a buying group, we're able to secure the kinds of prices hospitals and schools get because of their volume discount. We can also help if you have any customer service issues that aren't easily settled between you and the heating oil company. Over time, Co-op Power is hoping to use its buying power to get more biodiesel into the heating oil mix so that we're using less fossil fuel and protecting the environment.
Q: How does Co-op Power's heating oil buying group work?
A: This year, you would sign an agreement naming Co-op Power as your buying agent and send in a $100 signing fee. Co-op Power will then go out and negotiate a fixed price contract for you as part of a bulk purchase agreement. The fixed price contract will include a budget payment plan and a pre-pay plan, a senior discount, and a service contract option.
Q: Is the signing fee refundable?
A: The fee is refundable if, a) we receive notification atleast 2 days before a heating oil contract is signed with a provider, or b) if we do not meet the maximum price per gallon that you requested on the survey. If we meet or get less than that price, your fee is not refundable.
Q: What are the current cash prices in my region?
A: As of July 27, 2010, prices range from:
- $2.34 to $2.60/gallon in Hampshire and Northern Hampden County
- $2.45 to $2.64/g in Franklin County
- $2.34 to $2.52/g in Southern Hampden County
- $2.49 to $2.50/g in Berkshire County
- $2.34 to $2.65/g in Worcester County
- $2.19 to $2.59/g in Boston Metro East region
- /g in Southern VT
- $2.46 to $2.50/g in Southern NH
Q: Why not just pay the cash price?
A: Signing a fixed priced contract allows your heating oil company to go out and purchase your oil at a fixed price before the heating season when prices are lower. It stabilizes you costs and makes sure, if heating oil prices rise in January, you won't get hit with a big unexpected bill. When fixed price contracts are under $3/gallon, Co-op Power recommends you sign up for one. If they're going for more than that, we recommend you purchase your oil on an automatic delivery cash price contract and then purchase CAP Price Insurance to help you pay for your oil if the costs exceed $4 or $4.50/gallon.
Q: What might a fixed price contract cost now?
A: Heating oil companies usually purchase oil based on the NYMEX NY Harbor wholesale price index and pick it up at a rack nearby. Right now prices for the next nine months range from $2.05 to $2.21/gallon. It will cost your heating oil company additional money to transport the heating oil to their rack and then deliver it to you, so we add on another 40 to 50 cents a gallon, depending on how far you are from the NY Harbor for total of $2.45 to 2.71/g. When we go out to bid in early August, heating oil companies may have purchased contracts earlier in the season at lower costs, so we may be able to do much better than this.
Q: What is the difference between automatic delivery and will call delivery?
On automatic delivery, the oil company brings your oil when your tank is beginning to run low based on their calculations. They're able to schedule your deliveries with others in your area, so it's less expensive for them, saving you money too. On will call, you call when you want a delivery. When you purchase your oil through Co-op Power's buying group, you're placed on automatic delivery. If you're using wood or another heating fuel, you'll want to call and discuss your delivery schedule with the heating oil company to make sure they don't come out if you don't need a delivery.
Q: Do I have to pay for my heating oil all at once?
A: You'll be able to pay on a budget plan or all at once, whichever fits your financial needs. because we're getting started late in the season, there could be a few back payments due on your budget plan though. Next year, we'll get started earlier.
Q: Will I need a credit check?
A: Yes, the heating oil company will need to check your credit before they'll accept you as their customer.
Q: What is bioheat? Is it ok to have biodiesel blended in my heating oil?
A: Bioheat is a blend of home heating oil and biodiesel. B5 is 5% biodiesel and 95% heating oil. B20 is 20% biodiesel and 80% heating oil. You can use up to a 20% blend of biodiesel without doing anything special to your heating system. It will just reduce maintenance on your system and reduce particulate matter from your system's exhaust, making it better for the environment. It also reduces your dependence on fossil fuels.
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