There isn't a day that goes by when ICPA doesn’t have phone calls from retailers and meetings with retailers about the positions they are in on their contracts.  Some we've been able to be at least somewhat helpful in getting them reorganized, with others somewhat less successful. We've sat with people or talked to people over the phone who have literally cried as they see their company struggle with extremely difficult circumstances. No one can honestly suggest that ICPA doesn't understand the plight of heating oil retailers. We understand the pain every retailer is going through.

For the past three weeks ICPA has done an enormous amount of media on the issue of contracts and those have been reported by email and in the newsletter. DCP and the AG, and in writing, are telling consumers that if they signed valid contracts they own what they bought. ICPA continues to brief the media, government and consumers about the realities of contracts and the markets. ICPA's name, face and voice have been in the middle of every story in every media in Connecticut on this issue. 

The ICPA Board met in Dec, 2007, March, 2008, June, 2008 and September, 2008 to consider its positions on the legislative issues involving changes to the Heating Oil/Propane Registration/Contracts law. ICPA was organized to deal with this issue in the next Legislature well before the last three weeks. We know that there needs to be wholesale revisions to the statute everyone lives under - no one can honestly say we don't understand that we've been engaged in that for months.

Whether we like it or not, we can't deal with this until the next session of the Legislature in January. If we could do it tomorrow, we would - we can't. There is an election next week to choose who will be in the next Legislature. Once we are past November 4th, then in December the Legislature caucuses to choose it leadership and appoint committee chairs and committee members. We understand that few want to listen to the process we have to live with, but that is the process. In January the Legislature begins meeting and that is when legislation can be introduced. 

ICPA feels the extreme sense of urgency concerning this issue, but unfortunately the framework that we have to work within does not allow for things to move more quickly. Contracts that are poorly constructed and unscrupulous consumers who threaten to walk away from them only accelerate the need for change. Asking oil dealers who are fighting for their livelihoods to be patient is not really an option, but unfortunately we have no other choice. 

• ICPA has already held three meetings with the Department of Consumer Protection and the Office of the Attorney General on this issue to see if we can gain those two agency's support for what changes need to be made in the Connecticut contracts law. We will continue to meet through Christmas fashioning the legislation that will go to the ICPA Board in December.
• ANYONE who suggests that ICPA has not made progress, or hasn't made sufficient progress - has no clue what they're talking about. Four people know, and two of them are Gene and Chris - and two others from state agencies - no one else has any idea as the meetings are off the record. Period.
• If what we need to do has a chance of actually passing, we need broad support of these agencies to work with us, not against us. If we can gain these agency's support then we have a better chance of Legislators being willing to support us as well.

We just finished seven [7] chapter meetings and have taken dozens and dozens and dozens of phone calls and emails from members on these issues - we don't need to take a poll of people's opinions - we hear their opinions every single hour of every single day. 

ICPA is committed to effecting change that with substantially improve the plight of oil dealers who are being crushed by the impact that oil contracts are having on their businesses. Retailers need to play a role in that at the right time in January as legislation can be finished and discussing legislation with legislators can take place. 

• Any member who wants to meet with their representatives and senators now, can do that.  Two members met with Senate President Williams and Senator Fonfara last week, and neither Senator was convinced and the meeting set back - not improved on the situation but set back - the cause of getting this law changed.  
• Any member who doesn't want to listen to advice about the process we need to go through, about the support we need to build, and about the legislative process we need to work in - can strike off on their own. If the meeting of two marketers last week is any indication, all that does is hurt our chances of success it doesn't help it.  Nonetheless, if members want to do that they are free to.

Legislation that can be supported by the overwhelming majority of the heating oil industry, the Attorney General’s Office, The Department of Consumer Protection, the Governor and the Legislature is the best chance for change. Legislation is not easy to craft, it is not easy to get passed or signed into law. 

If anyone, anywhere, who has read this carefully and embraces it for what it means doesn't think ICPA "gets it" or isn't doing something we should be doing - then take President Jim Meehan up on his call to members in the letter he sent out and either call him or call Gene - as below. If someone can do this better than we're already doing it then - show up at 10 Alcap Ridge at 8.30am Monday morning and let's go to work.

For more information contact Gene at gene@icpa.org or call ICPA toll free at 1-866-521-ICPA

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ICPA IN THE MEDIA ON CONTRACTS - AG LETTER TO CONSUMERS

This week ICPA has been in the media, again, on the issue of consumer heating oil contracts. ICPA Executive Director Gene Guilford was interviewed by the Connecticut Public Radio, the Danbury News-Times, the Stamford Advocate and he also taped Channel 3 television's "3 On Your Side" show with Al Terzi. While Attorney General Blumenthal has gone further than everyone wanted in his press comments, his Office of Consumer Affairs has issued a letter that is used with consumers who contact his office.  Read the letter here >

http://WWW.ICPA.ORG/newsletters/2008 newsletters/AGO_contract.pdf

Attorney General Blumenthal has been invited to meet with ICPA on the evening of December 4, 2008.  Those who would like to attend should let ICPA know by return mail when you receive your invitation.

Delivery Ticket Law Explained

ICPA has received several calls from members concerning what price needs to be placed on a delivery ticket when making a residential heating oil delivery.  State law requires that residential heating oil and propane deliveries must include the unit price and the total number of gallons sold, clearly printed on the delivery ticket.  The law also states that to collect from any purchaser of fuel oil or propane gas an amount which exceeds the unit price multiplied by the total number of units stated on the delivery ticket is strictly prohibited.  For example, if a customer who has a contracted price of $5.00 per gallon receives a delivery ticket that indicates that the price is $3.00, the oil dealer must invoice the lower amount.  The penalty for violation of this law shall be fined $100 for the first offense and $500 for each subsequent offense per incident.  To see a copy of the law click here>

 http://www.cga.ct.gov/2007/pub/Chap296.htm#Sec16a-21.htm. 

If you are having difficulty with complying with this law for technical reasons, please consult with your software manufacturer of contact David Chu for more information on how ICPA can assist upgrading your delivery ticket technology.

Does Your Liquidated Damages Clause Protect You?

With the dramatic drop in heating oil prices, many ICPA members who offer fixed price contracts are experiencing consumers who are looking for any way to get out of their contracts.  For several years ICPA has made available to members tools to protect themselves from this very situation.  Picking a “termination fee” because it sounds good, because a dealer does not want to intimidate their customer, or because that is what they used in the past is not in your best interest and in many cases will cost you money.  Oil dealers who choose to offer these contracts need to place themselves in the best position possible by hoping for the best, but planning for the worst.

Since 2004, ICPA has published a comprehensive heating oil contracts guide that is available on the Member's Only section of the website, here >

http://icpa.org/protect/TBs/ICPA_MSB25_Contracts.pdf

Liquidated damages is discussed on page 10, but the whole document is worth reading.

Verbal Contracts Questioned

The Office of the Attorney General (AG) issued letters this week to several heating oil dealers who offer contracts over the phone.  The AG’s office is responding to consumer complaints concerning verbal contract that are not accompanied by a written contract.  The AG’s office allows oil dealers to consummate a contract over the phone if the terms and conditions of the contract are mailed to the customer in advance of the offer over the phone, and that a signature is returned to the company after the contract has been agreed to.  In addition to mailing the terms and conditions the company must, in a recorded conversation, disclose the price in which the oil is being offered, the length of the contract, and the amount of gallons being sold.  ICPA recommends that oil dealers offering contracts over the phone follow the protocol established by the AG’s office. Oil dealers who receive correspondence from the AG’s office are urged to retain council and cooperate with the inquiry.

To see a copy of the AG's advisory letter on this issue click HERE

For more information contact Chris at chris@icpa.org or call ICPA toll free at 1-866-521-ICPA

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For more information contact Gene at gene@icpa.org or Chris at chris@icpa.org or call ICPA toll free at 1-866-521-ICPA

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CFTC OBJECTS TO FTC BID FOR INVESTIGATIVE POWERS OVER ENERGY FUTURES TRADING

In an emerging bureaucratic war that is sure to affect petroleum marketers, the Commodity Futures Trading Commission (CFTC) has filed comments opposing the Federal Trade Commission’s (FTC) efforts to extend FTC authority over the energy futures market. The rulemaking is important to petroleum marketers because it will not only ultimately effect wholesale pricing but also shift much of the emphasis of fraud and manipulation investigations conducted by the FTC from the retail pump to the terminal rack and above.

The FTC proposed the new rulemaking as a result of the Energy Independence and Security Act of 2007 that requires the agency to establish parameters for determining fraud and manipulation in the wholesale exchange of crude oil and petroleum products. Congress enacted the law to address high gasoline and diesel fuel prices during the summer of 2007 that infuriated consumers. The CFTC filed comments on the proposed rule that strongly urged the FTC to exclude trading activities in futures and options on regulated exchanges from the rulemaking. The CFTC argued that authority over regulated exchanges was the sole responsibility of the CFTC and that FTC jurisdiction over these activities would “impair the CFTC's ability to effectively oversee futures activity in these critically important markets.”

In the past, however, the CFTC has been reluctant to investigate energy futures markets for manipulation of crude prices. Specifically, the FTC’s proposed rule would prohibit the purchase or sale of crude oil, gasoline, or petroleum distillates at wholesale by using any device, scheme, or artifice to defraud; any untrue statement of a material fact or omitting to state a material fact; or by engaging in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person. The proposed rule would cover misleading announcements by refineries, pipelines, and even indirect participants such as investment banks and include false reporting to publishers of oil price indexes. [PMAA]

ASTM PUBLISHES LONG AWAITED BIODIESEL BLEND QUALITY SPECIFICATIONS

The American Society for Testing and Materials (ASTM) has published long awaited quality specifications for biodiesel blends. The new ASTM specifications are important to petroleum marketers because they ensure the availability and high quality of biodiesel blends and can be used for guidance in fuel blending, blend standardization, quality control as well as bid and purchasing contracts. The new biodiesel blend specifications include:

• ASTM D975-08a, Specification for Diesel Fuel Oils – This specification, used for both highway and off-road diesel engine use, has been revised to include requirements for biodiesel blends up to B-5.

• ASTM D396-08b, Specification for Fuel Oils – This specification used for home heating and boiler applications, has been revised to include blends up to five percent biodiesel.

• ASTM D7467-08, Specification for Diesel Fuel Oil, Biodiesel Blend (B-6 to B-20) - This is a completely new specification that applies to finished fuel blends of between 6 percent biodiesel (B-6) and 20 percent biodiesel (B-20) for both highway and off-road diesel engine use.

ASTM also approved revisions to existing ASTM D6751 specifications for pure biodiesel (B-100) prior to blending with diesel fuel. PMAA is working with the IRS to ensure that the new ASTM specification and revisions meet the definition of biodiesel under the IRS code for purposes of obtaining the $1.00 per gallon federal biodiesel tax credit. The new specifications are available for purchase from ASTM at www.ASTM.org  [PMAA]

For more information contact Gene at gene@icpa.org or call ICPA toll free at 1-866-521-ICPA

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Energy Loans - AFC First ICPA members can now offer their customers a premier loan program to help you sell more HVAC products through our endorsement of AFCFirst’s Energy Loan program.  These are unsecured consumer loans (no home equity required) anywhere from $1000 to $20,000.  Here’s what one ICPA member says about this service: “The Energy Loan program makes it easy for me to sell burners, boilers, and other heating and air conditioning systems to my customers.  Whereas before, the several thousand dollar price tag was always a stumbling block for my customer, now it’s a breeze to sell them equipment through affordable installment payments!  And working with AFCFirst is such a pleasure.  The entire loan process is quick and easy, and best of all, I get paid in full once the financing to my customers is approved!  No waiting, no hassle.” 

For more information contact David Chu at chu@icpa.org  or call ICPA toll free at 1-866-521-ICPA

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PRICES CORRECTED TO THE BTU EQUIVALENT OF HEATING OIL http://icpa.org/protect/degreeday.htm

DPUC/Yankee Natural Gas	$2.75
DPUC/Connecticut Natural Gas	$2.40
DPUC/Southern Connecticut Natural Gas	$2.53
DPUC/Connecticut Light & Power	$7.44
OPM/Propane Statewide Average	$4.95
OPM/Heating Oil Statewide Average	$2.93
Wood Pellets*	$2.65

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*At $310 per ton, delivered, premium pellets with less than 5% moisture content

For more information contact Gene at gene@icpa.org  or call ICPA toll free at 1-866-521-ICPA

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ITEC's Newsletter is found at ITEC NEWSLETTER - October 20, 2008

	10 Alcap Ridge, Cromwell, CT  06416                 Toll Free 1-866-521-ICPA  Fax  860-632-1122     www.icpa.org
ICPA sends out 1,100 E-Marketers Reports with each transmission either by email or fax to its 542 members and employees, as well as affiliated organizations around the country.