ICPA's 2008, 58th Annual Meeting

June 16-17, 2008

Mohegan Sun Resort & Casino

Uncasville, Connecticut

Federal Actions on Commodities Markets - Is Relief Coming?

For two years we have struggled to get the Close the Enron Loophole legislation passed in Congress - putting the Commodities Futures Trading Commission back in the business of paying attention to over-the-counter and electronic energy commodities trading. Now we have Congressman Larson's legislation aimed at driving hedge funds and investment banks out of buying paper energy contracts to take the heat out of energy commodities. Recently the Federal Trade Commission announced its first regulatory actions to develop an oversight of possible manipulation of energy commodities markets. Is this enough? Is this too much? What should we be doing and are markets merely a reflection of a new reality we need to adjust to or a free market run amok and in need of more oversight?

This issue will be decided by ICPA members - so those who show up and participate will be the ones who ultimately decide where this goes. 

Should Certain PreBuy and Guaranteed Price Contracts Be Banned By State Law?

The last few years have seen enormous upheaval in retail markets with years when consumers begged for contracts and then years when consumers tried to get out of their contracts. In light of the F&S and Accurate Energy failures this year, stranding more than 4,000 consumers and more than $3.5 million in prepayments - do these contracts really benefit consumers and competition? ICPA's Board has voted to support legislation banning certain contracts, and the ICPA membership has voted by electronic ballot 63% to 37% to support legislation banning certain contracts. Can government intervention solve this problem? What needs to be done bringing marketers up to speed before any legislative action can be done? What are all the issues we need to hear from marketers about and address in considering these legislative actions?

This program will be a panel discussion involving ICPA President of the Board Jim Meehan of Peterson Energy, Matt Mitchell of Norbert E. Mitchell, Jennifer Tracey Carlo of Tracey Energy, Charlie Mazzella of Benvenuti Oil, Ed Guarco of State Line Oil, Tom Santa of Santa Fuels, Clay Bassett of Scasco, and Daniel Silverman of Angus Energy. 

Attendees will be asked to listen to the panel discussion and participate in Q&A on this issue. This issue will be decided by ICPA members - so those who show up and participate will be the ones who ultimately decide where this goes.  

To help motor fuels retailers navigate all the data we gathered on consumer trends and behaviors at the pump, NACS identified five key insights from the report and asked industry leaders for their perspectives.

Motor Fuels - NACs - What Fuels Consumer Behavior?  by Jeff Lenard

There is no question that gasoline consumers have gone from price sensitive to price super sensitive. Based on a national survey of 1,215 consumers, NACS found that nearly three-quarters believe price is the most important factor in determining where they buy gasoline, and that more than one-quarter would change their purchasing behavior to save a penny. But what about some of the "so what?" findings from the survey? To help motor fuels retailers navigate all the data we gathered on consumer trends and behaviors at the pump, NACS identified five key insights from the report and asked industry leaders for their perspectives. Jeff presents this information to help motor fuels marketers navigate the increasingly difficult world of changing consumer attitudes.

Attendees need to listen to this discussion and participate in a Q&A on the topic and give feedback for where this issue should go over the next year.

Selling Heating Oil Corrected for Temperature - What Does This Mean? 

Every gallon of product sold from the refinery gate to the wholesaler is sold corrected to 60* At the rack and at retail there is no electronic, mandatory temperature correction. What does this mean? ICPA's Temperature Correction Task Force and Board of Directors voted to oppose sales based on temperature correction until July of 2009 to give the industry an opportunity to learn more about what this means, how it effects retailers and consumers, and what it will cost retailers to comply. This program will be a discussion between those who do and those who do not believe selling heating oil corrected for temperature is a good idea. Attendees need to listen to this discussion and participate in a Q&A on the topic and give feedback for where this issue should go over the next year.

Every motor fuels supplier and marketer needs to attend this session.

Motor Fuels Transparency Legislation / Major Oil Companies and Jobbers Under the Scope by the State 

Every year for ten years ICPA has worked to defeat zone pricing bans on motor fuels. This year there was no zone pricing debate - but a debate about the data the majors would not provide the state regarding the case they made in 2007 of why zone pricing benefited consumers. In 2008 the legislature wanted the data, the majors would not provide it, so the legislature passed a law compelling the production of certain price and market data. This will be a presentation involving Representative William Tong [D-New Canaan] who sits on the Legislature's Energy Committee and Representative Chris Stone [D-East Hartford], who is the House Chair of the Legislature's General Law committee where this legislation was written. Every motor fuels supplier and marketer needs to attend this session.

This program is a fairly brutal and direct set of guides for the organization and capitalization of a heating oil company for today and tomorrow's market environment.

If $4+ a Gallon Is The New "Normal," How Will Your Company's Finances and Staffing Need to be Reorganized to Survive?

Two financial experts in heating oil company finance and organization will address how a heating oil company selling in a market of $120 a barrel crude and $4 a gallon product is a company that needs to be organized and capitalized differently than that same company who sold in a market of $1 a gallon product 5 or 10 years ago. Are you working to make a living? Building a nest egg for retirement? Planning on a transition? How do you avoid being the seller and writing a check to the buyer at sale time because you didn't manage your company to have a net worth? How do you deal with the new reality of $4 a gallon product from sales to debt to management? The average 2.5 million gallon company that had to capitalize $1,150,000 for wholesale oil in 98/99 is looking at $9,125,000 in 08/09. That same company sells 20% of their annual volume in January [500,000 gals], and will need $2 million in credit to purchase oil on 10 or 30 day terms and wait 30-45-60 days to be paid by consumers, or longer. $2 million in credit for one month.

This program is a fairly brutal and direct set of guides for the organization and capitalization of a heating oil company for today and tomorrow's market environment.

Dinner and Awards Ceremony for Marketer of the Year and Associate Member of the Year. Special Guest Speaker is Mr. Brad Davis, WDRC-AM radio talk show host and conservative political commentator. We will also be celebrating 30 years of excellence in training and education from the ICPA Education Foundation's Technical Education Center!

June 17, 2008

Mohegan Sun Resort & Casino

Uncasville, Connecticut

ICPA 58th Annual Meeting - Day 2

Every heating oil retailer in needs to pay particular attention to this program as it teaches how to push the right buttons to try to keep customers from switching to natural gas - as well as important consumer information about energy conservation and includes a nifty bill stuffer brochure you can use too boot.

Keep Your Customers From Switching to Natural Gas

According to OPM the statewide average price of heating oil is $4.03. According to the DPUC, natural gas utilities are selling residential natural has for between $2.20 and $2.40 a gallon in equivalent BTUs to heating oil. See an issue?  We have a comprehensive program to help heating oil retailers better appreciate consumer attitudes about energy issues, why they care less about service than their parents did, why you should not be laying off service techs when product costs are high is you sold "energy conservation" instead of the fear of the need for service. Discussion of how changing demographics drive different consumer choices and tastes and how heating oil retailers need to change their approach to consumers based on changing demographics.

Every heating oil retailer in needs to pay particular attention to this program as it teaches how to push the right buttons to try to keep customers from switching to natural gas - as well as important consumer information about energy conservation and includes a nifty bill stuffer brochure you can use too boot.