HEATING OIL RETAILERS ASK FEDS TO SPEED  CREDIT RELIEF

Fear, Driven by Wall Street Predictions of $200-a-barrel Oil, Created Ongoing Credit Crisis That Threatens Retailers and Consumers - Senator Dodd Calls Sec'y Paulson - Paulson Agrees to Meet - ICPA Expects A Meeting to Be Scheduled Within the Week

November 6, 2008 (Cromwell, Conn.) – A coalition of nine northeastern energy associations has appealed to U.S. Treasury Secretary Henry Paulson to speed relief from the credit crisis now threatening small businesses and consumers across the country. Associations in Connecticut, Vermont, Massachusetts, Rhode Island, New Hampshire, Maine, Long Island, New Jersey and NEFI joined together in the communication to Secretary Paulson.

“We’ve written to U.S. Treasury Secretary Henry Paulson to request an immediate meeting to discuss the nation's banking crisis and the effects that crisis is having on small businesses and consumers,” Gene Guilford, the Executive Director of the Independent Connecticut Petroleum Association, said. “Whatever the federal government may have designed to increase the nation's banks willingness and ability to lend it has not yet worked for consumers or small businesses.”

With the enactment of the Emergency Economic Stabilization Act (EESA), Congress provided the Treasury with $700 billion and an array of significant new powers to be used to stabilize financial and capital markets and restore equilibrium to the nation's economy. One of the purposes of EESA is to allow the Treasury to relieve the financial community of some of their nonperforming assets in order to free up capital for lending. The banking system is under severe capitalization pressures-- as a result the system is locking up and borrowing is being shut down.

• Capital markets being locked up means lending to small businesses and consumers shuts down or gets very difficult and the fact is the $700 billion Congress appropriated that is designed to free up lending hasn't reached Main Street yet.
• We are the face of Main Street, local businesspeople who live in the communities where we work. Wall Street speculators drove energy prices through the roof this spring and early summer – predicting $200 a barrel crude oil and $5 or $6 a gallon heating oil. Consumers came to us in great numbers and demanded protection. Our companies had to lock in very expensive wholesale supply in order to meet that consumer demand. Prices have fallen 55% since mid-July, but not for those retailers and consumers who locked in their supply.
• The Senate Banking Committee says "The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets of financial institutions and making it difficult for working families, small businesses, and other companies to access credit, which is vital to a strong and stable economy. "
• We are among those small businesses having difficulty accessing credit.
• Despite the actions of Congress and the Treasury, many fuel companies still do not have access to the capital we need to borrow in order to maintain our businesses and serve our consumers.
• These small businessmen and women are not asking for a bail out or a hand out. They want to borrow money and pay it back. We simply want the system to work as Congress intended – to free up commercial and consumer lending. This is the point of Emergency Economic Stabilization Act.
• $1.3 trillion of our tax money later - the mess created by Wall Street and financial institutions have left us further in debt and left out consumers and small businesses who need to borrow - and pay it back. Senator Dodd addressed this in his press conference of November 6th on the Banking Committee's agenda for next year when he said the financial system bailout wasn't for healthy banks to buy healthy banks or pay bonuses to executives - it was about freeing up capital to be lent to small businesses and consumers. It isn't happening yet and we want the Treasury Secretary to know that for all of the attention to Wall Street, banks and big businesses that the engine that drives this economy are small businesses and the 95% of the nation’s workforce small businesses represent. Who is speaking for us and our customers? 

ICPA wants everyone to understand that the Hartford Small Business Administration office and the Connecticut Development Authority have gone above and beyond the call in providing advice and assistance, but the agencies need private lenders to make loans before their loan guarantee assets can come into play.

ICPA met with the Connecticut Development Authority again on November 6th, and found that banks increasingly want 100 percent protection by state and federal agencies and want to completely avoid risk. Banks have constricted their lending and are making the conduct of business increasingly difficult as the nation continues to slide into a recession. It is no surprise that the Big-Three automakers are reduced to meeting with the Speaker of the House Nancy Pelosi to ask for $25 billion in bridge financing as the traditional credit markets are not available.

“We seek no bail out. We seek only to be able to borrow funds and then try to construct relief for consumers,” Guilford said. “Wall Street helped cause this economic calamity, Wall Street and the nation's financial community have gotten $1.3 trillion from the taxpayers, and we ask how long will it take for this taxpayer-funded largesse to trickle down to small businesses and consumers so that we may borrow money and provide relief? We are revolted to read that Wall Street executives will continue to receive their bonuses under the Treasury Department plan, while Main Street continues to wait for the simple ability to borrow.”
 
ICPA requested the assistance of Senator Christopher Dodd in presenting the letter to Secretary Paulson.  Senator Dodd's office called ICPA Executive Director Gene Guilford on Friday afternoon to confirm that Senator Dodd had spoken with Secretary Paulson and that Secretary Paulson would have his deputy call ICPA next week to arrange a meeting with the Treasury Department.

• The Letter to Secretary of the Treasury Paulson is Here

• Senator Chris Dodd's Letter to Secretary Paulson is Here

• Talking Points on the Approach to the Treasury Department Here

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

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HISTORIC ELECTION INCREASES DEMOCRAT MAJORITY IN BOTH HOUSES

The November 4^th election not only made history on the national level, but also produced notable local results unseen in over three decades.  For the first time since the landslide election after Watergate in 1974 where 118 Democrats won to only 33 Republicans, the Connecticut General Assembly has the largest margin of elected Democrats in the Connecticut legislature since that time. House Democrats captured eight Republican seats bringing their majority to 114 with only 37 on the Republican side of the isle.  The House will be led by a new Speaker (a union employed progressive Democrat) Chris Donovan of Meriden who replaces moderate Jim Amann of Milford.  In the Senate, Democrats will be led once again by Don Williams of Thompson, the Senate Democrats picked up one seat and now have a veto-proof majority of 24 Democrats to 12 Republicans.  Sometime in December, the chairs of the various legislative committees will be appointed.  Once ICPA knows who the chairs of the committees will be, and who will serve on the Energy, General Law and Environment Committees, we will schedule meetings in December to review ICPA’s legislative issues that will be addressed in the upcoming January 2009 session.  Until the Legislature convenes in January no changes can be made to Connecticut law.

energY AUDIT PROGRAM INCLUDES CLEAN-TEST-TUNE

On Friday the 14^th at 9:00am heating oil dealers who attend a one hour session conducted by the Office of Policy and Management (OPM) at ICPA in Cromwell, will find out how to become eligible for energy audit funds.  The state audit grants are eligible for two primary functions – clean, test & tunes and home energy audit and conservation work.  Companies should send the primary person who will be responsible for processing the paperwork for the grant money to this session along with a Service Manager or technician.  Attendees that preregister will be processed at the session to become immediately eligible for receiving these grants up to $200 for performing a routine clean test & tune.  Registration is by company and not by individual service technician.  Failure to attend this session and register with OPM will cause delays in your participation of the program and your ability to access these funds.  To attend this session for no cost you may register online at 

http://www.icpa.org/store/products_view.php?url_product_id=438 

...or by calling Kate at 1-866-521-ICPA (4272) or by e-mailing Kate at kate@icpa.org.  Please have your Federal Employer Identification Number when you register - this is required by OPM to expedite your registration for the program. For companies that are interested in becoming whole home energy auditors through the Home Energy Solutions (HES) program will also be reviewed at this session.  ICPA will be announcing training sessions for oil dealers who are interested in the HES certification shortly.

FORMER NEWTOWN OIL OWNERS SENTENCED

Attorney General Richard Blumenthal today praised criminal authorities for their role in the arrests and sentencing of the former Newtown Oil operators who entered into fraudulent pre-paid home heating oil contracts with consumers. 

A Superior Court judge today sentenced William A. Trudeau Jr. to a 25-year suspended sentence and five years probation. His wife, Heather Bliss, was sentenced to a 15-year suspended sentence and five years probation. 

As a condition of the suspended sentences, Trudeau and Bliss were ordered to immediately pay another $121,000 towards victims in the criminal case -- those consumers who were lured into pre-pay contracts after the company was fully aware of its inability to deliver oil.

The judge also ruled that, as a condition of their suspended sentence, Trudeau and Bliss must pay in full and on time the $150,000 balance of the $250,000 civil settlement negotiated by Blumenthal's office.

"Today's sentencing provides another $121,000 -- above and beyond the $250,000 civil settlement already negotiated by my office -- for consumers victimized by Newtown Oil's criminal practices. 

"With the criminal proceeding final, nearly 1,000 consumers will likely receive the first round of settlement payments within the next few months -- eventually followed by a second payment to consumers once all of the settlement money has been collected. This restitution comes at a vital time, as countless Connecticut consumers struggle to stay in their homes and pay their bills.

"These former Newtown Oil operators entered into contracts with consumers that they knew were impossible to fulfill. Taking money for themselves, Trudeau and Bliss literally left consumers out in the cold, without oil or money. 

"The sentencing and civil settlements were the result of a vital law enforcement partnership, involving my office, the State's Attorney's Office, Newtown and Danbury police departments and the Department of Consumer Protection. Our offices will continue to work collectively and cooperatively to hold fraudulent home heating dealers accountable." 

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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LARSON ASCENDS? - NO REPUBLICANS IN THE HOUSE FROM ALL OF NEW ENGLAND - LIEBERMAN IN THE DOG HOUSE?

With the defeat of Congressman Chris Shays [R-CT 4th CD] by newcomer Democrat Jim Himes of Cos Cob [http://himesforcongress.com/], there are now no Republicans serving in the U.S. House of Representatives from the six New England states. Himes cites himself as a community leader, executive of a major non-profit association and a former employee of Goldman Sachs. 

Connecticut Senator Joe Lieberman, fresh from campaigning for Republican John McCain, met yesterday with Senate Majority leader Harry Reid [D-NV], where apparently Lieberman was provided options few of which will be to his liking in retribution for his support for McCain in the last election. Expect Lieberman to lose his Chairmanship of the Senate Homeland Security Committee and, perhaps, have his office relocated to Baltimore.

Of better news concerns Congressman John Larson [D-CT 1st CD], who not only won going away on the 4th but with the ascension of Illinois Congressman Rahm Emanuel to become President-Elect Obama's Chief of Staff, is the odds-on favorite to become the Chair of the House Democratic Caucus - the 4th highest ranking Democrat in the House of Representatives. ICPA works closely with Congressman Larson.

Congressman Joe Courtney [D-CT 2nd CD], Congressman Chris Murphy [D-CT 5th CD],and Congresswoman Rosa DeLauro [D-CT 3rd CD], all won re-election. Congresswoman DeLauro was the 7th ranking Democrat in the House as the Democrat Steering Committee Co-Chair and is expected to run for leadership again. [ICPA]

PREPARATIONS FOR A NEW PRESIDENT AND A NEW CONGRESS

Congress

The 111th Congress convenes on January 6, 2009. On the Senate side, there are now 57 Democrats [including 2 Independents who caucus with the Dems, Bernie Sanders of VT and Joe Lieberman of CT], and 41 Republicans. At this writing there are two Republican incumbents with undecided races [Coleman of MN, Chambliss of GA] Alaska Senator Ted Stevens won his race for re-election and is likely to face expulsion from the Senate due to his recent conviction on numerous felony counts. Interesting there as should that occur Alaska Governor Palin would appoint an interim Senator until a special election can be held 90 days later. Chambliss in Georgia faces a run-off as he failed to get the 50% he needed in the general election. Norm Coleman only defeated former Saturday Night Live writer and comedian Al Franken by less than 500 votes out of 2.9 million cast, and is now in a hand recount. Some indication of the depths to which the Republican party has sunk is when a sitting U.S. Senator can't defeat a comedian.  Connecticut Senator Chris Dodd will remain as Chairman of the Banking Committee and as previously reported, no one is sure what will become of Senator Lieberman.

On the House side there are 254 Democrats and 174 Republicans, with 7 seats yet to be determined. Nancy Pelosi of California will be re-elected Speaker of the House and Steny Hoyer re-elected as Democrat Leader.  Connecticut Congressman Larson is expected to run for and win a race to become the Chair of the House Democrat Caucus.

White House

President-elect Barak Obama will be sworn in as the 44th President of the United States on January 20, 2009. The President-elect has named his Chief of Staff, former Clinton White House advisor and Illinois Congressman Rahm Emanuel. Emanuel's choice is a sign that given Emanuel's tenacity and drive, the new President won't be rolled by Congress, even one overwhelmingly of his own party. The President-elect has released the names of his transition team, click here for the list. 

The President-elect in his first press conference since the election cited three top priorities as he enters office. First is the economy and he addressed the need for a second economic stimulus package, perhaps larger than $200 billion and work to restore confidence in markets and stimulate lending by the financial community. A new stimulus package could come in the lame duck session prior to the new Congress. Second cited is Health Care and the third Environment.  Look for the new President to present aggressive new cap and trade legislation to curb and then reduce greenhouse gas emissions and for a full auction of credits. This will be a major challenge for heating oil - and oil in general in the new Administration and Congress. 

This new Congress and President will both pose significant challenges to oil, with designs on reducing reliance on imports by replacing oil with alternative fuels and only modest efforts at domestic production. To the extent domestic production is in the mix look for the emphasis to be on natural gas. 

The oil industry will need every bit of energy and talent it can muster over the next four years as this new President and Congress will challenge us in ways we have not seen. The people have spoken, the Democrats are firmly in charge in January, and we'll need to be ready everywhere.

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

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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	$4.31
OPM/Heating Oil Statewide Average	$2.92
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

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