On Friday August 22nd the Connecticut General Assembly held a one-day Special Session, at the call of Governor Rell, to deal with very narrowly defined issues regarding energy costs.  The Special Session afforded NO public hearings, and no submission of legislative issues beyond that specifically called for by the Governor and Legislative leadership.

ICPA issued a Legislative Bulletin at 10.00am on the 22nd to deal with an issue proposed by State Representative Steve Fontana [D-North Haven], to provide state grants to towns and cities to set up municipally-based heating oil co-ops. Thanks to the hundreds of phone calls placed to their local representatives and senators, the provision was stricken from the proposed legislation.  Senator Edith Prague [D-19th District] called ICPA Executive Director and congratulated ICPA for the effective grassroots organization killing the co-op provision. Further, the entire membership of the Democratic caucus walked out of their caucus and told President Williams that as long as the co-op provision was in the bill they were not going to vote on the energy package.

What ICPA members did Friday highlights what is possible when members are focused and agree to work on an issue.  Here are the highlights of what the legislature did do Friday:

• The bill appropriates $3.5 million dollars in FY09 to OPM to provide heating assistance grants to human service and public health nonprofit organizations, including those that contract with the state to provide services. Grant recipients may include providers of adult day care, residential services to the homeless, and services to domestic violence victims. [Effective immediately]

• The bill appropriates $4 million dollars for FY09 to OPM to provide home heating assistance to seniors age 65 and older who have incomes at or below 100% of the state median household income and are unable to make timely payments on deliverable fuel, electricity, or natural gas bills. [Effective immediately]

• The bill appropriates $6.5 million for FY 09 to OPM for grants to local and regional school districts for school heating assistance. Grants must be calculated on a per-pupil basis. [Effective immediately]

• The bill appropriates $8.5 million from the funds credited to the General Fund for FY 09 to OPM to expand Operation Fuel, Incorporated to provide emergency home heating assistance between November 1, 2008 and April 30, 2009. (Operation Fuel, Incorporated is a nonprofit organization that serves people who are not eligible for publicly funded energy assistance. ) The assistance must be provided to Connecticut households with income levels from 150% to 200% of the applicable federal poverty level (FPL). The bill appropriates another $ 5 million for FY 09 from the credited funds to expand Operation Fuel, Incorporated to provide emergency home heating assistance in the same period to Connecticut households with income levels of 200% or more of the applicable FPL so long as this is no more than 100% of the applicable state median household income, as determined by the most recently published Department of Social Services figures.

  For both appropriations, the funding must serve households who cannot make timely payments on deliverable fuel, electricity, or natural gas bills. Operation Fuel, Incorporated must pay the assistance directly to the fuel vendor, electric or gas company, or municipal electric or gas utility.

  The bill also appropriates $500,000 of the credited funds for FY 09 to OPM to provide a grant to Operation Fuel, Incorporated for its operating expenses in administering these programs. [Effective immediately]

• The minimum heating oil delivery was reduced from 125 gallons to 100 gallons (any delivery under 100 gallons can be assessed a surcharge). Although the industry standard is typically a 150 gallon minimum state law allowed heating oil dealers who delivered under 125 gallons to assess a surcharge. The new law lowers that to 100 gallons. [Effective 9/1/08]

• Increases the requirement to secure contracts offered to consumers from 75% to 80%. Heating oil dealers who offer guaranteed price contracts to their customers are required to cover 75% of the oil that they sell to their customers with a futures contract. The new law increases that requirement to 80%. [Effective 9/1/08]

• Adds a requirement for sellers of futures contracts (i.e.. wholesalers, etc.) to notify Consumer Protection if the contract is canceled. DCP believes that if wholesalers and other companies that sell oil contracts to retailers we required to notify the state if a futures contract was sold it would act as a early warning system so the state could address any potential problems. [Effective 9/1/08]

• Adds a requirement that a dealer who enters into a futures contracts to inform DCP who the dealer has obtained a futures contract from. DCP will now have the authority to confirm if oil dealers who offer consumer oil contracts are in compliance with the law. [Effective 9/1/08]

• Adds a requirement that dealers must notify the commissioner if at any time the total contract amount is less than 80% of (1) the maximum number of gallons or (2) the amount of fuel the dealer is committed to delivering under the prepaid or capped price contracts or that he estimates he is committed to delivering. [Effective 9/1/08]

• Makes a technical change to the $500 heating system rebate program that extends eligibility. This change allows the $500 rebates for heating system insulations that exceed 84% AFUE to be applied retroactively to July 1, 2007. [Effective immediately]

• Establishes a 0% heating system loan program for oil fired equipment that is 84% AFUE or higher. Prior to this change the loans were only obtainable by low income families at a rate that was higher. [Effective immediately]

• Establishes $500 rebate program to fund repairs and upgrades of heating systems. Heating system repairs or upgrades that achieve 84% efficiency will be eligible up to $500. [Effective immediately]

• Establishes a program to fund energy audits that subsidize energy audits conducted by qualified oil dealers who heat their homes with fuels other than natural gas or electricity. The program covers the balance of the cost of such audits that show they (1) provided an energy audit to a residential customer and (2) collected a $ 75 fee from the customer for the audit. There are no details on what these audits will entail at this time. Once the details are available ICPA will inform our members. [Effective immediately]

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

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• DCP SENDS OUT AUDIT LETTERS

The Department of Consumer Protection sent out an oil audit letter for the 08-09 heating season to all registered HODs on August 7th.  Please note that all audits, whether they are offering pre buy / guaranteed price programs or not, must respond to DCP by signing the notarized statement and returning it to DCP on or before 8/25/08.

If anybody has questions, please feel free to contact Jim Turner at 860-713-6185 or Inspector Giliberto at 860-713-6174.

The letter is linked for members HERE.

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

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• DSS CONNECTICUT ENERGY ASSISTANCE PROGRAM PLAN IS MADE PUBLIC FOR 2008/09

The Connecticut Department of Social Services [DSS] has made public the state's plan for the Connecticut Energy Assistance Program [CEAP] for 2008/09.

ICPA is passing the DSS plan along to members HERE, along with a cover memorandum from ICPA concerning the plan. The ICPA memorandum was reviewed by counsel and the ICPA Executive Committee on Tuesday, August 5, 2008 prior to its release here. The link above is to a document that is 25 pages long in .pdf [adobe acrobat] format.

At the recent legislative briefing on the 2007/08 plan, State Senator Andrew Roraback ( R-Goshen ) asked that the Department of Social Services consider addressing the compensation for heating oil dealers and the timeliness of payments.  In his remarks, Senator Roraback expressed his concerns about the northwest part of the state and the difficulties that the program places oil dealers in by deeply discounting their margin and waiting several weeks before they are paid.  Senator Edwin Gomes ( D-Bridgeport ) expressed similar concerns about the southwest part of the state and asked that small dealers be adequately compensated so that low income households who need assistance are properly served.

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

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MANAGEMENT EDUCATION

Seminar on Collection Strategies - Aug. 26, 2008, 8:30 AM - 12:30 PM, ICPA Offices, Cromwell.

This program focuses on receivables management and is intended for owners of companies and managers responsible for receivables. In the past, ICPA’s collections seminars have focused on collection techniques. They were geared towards your customer service staff making the actual calls. This year, we’ve assembled a team of presenters in the fields of collections, accounting, legal action, and IT who will present on collections strategies and on receivables management, plus a panel of marketers who will share their experiences.  You will learn how to use ratio analysis to identify potential collection issues.  You will learn about the pros and cons of using a third party collection agency.  You will learn how to navigate through the court system, from preparing your case to judgments.  You will learn how your receivables impact your credit lines, and how improving their aging can help you obtain needed financing.

To Register Online, Go To:

http://www.icpa.org/store/products_view.php?url_product_id=417

TWIC – Connecticut Rollout - Sept. 4, 10 AM - 12 PM, ICPA Offices Cromwell

Effective Oct 15 in New London , then rolling out to New Haven and Bridgeport on Dec. 1, ports will require drivers to have the new federal I.D.s called T.W.I.C. to access secure areas, including fuel terminals located there. This means your drivers will need these new I.D. cards to pick up product at these ports. These new I.D.s will require security clearance and criminal background checks with fingerprinting. This is a completely separate background check from the ones your drivers undergo for their HAZMAT CDL renewals. This program is administered by the Dept. of Homeland Security and the U.S. Coast Guard. In this presentation, you will learn how to apply for a TWIC card, where to go, how to pre-apply on the Internet, and find out if discounts apply for drivers who already have HAZMAT CDLs.  Port Security Specialist Rodger L. Guest of the U.S. Coast Guard will conduct this training.

To Register Online, Go To:

 http://www.icpa.org/store/products_view.php?url_product_id=418

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

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• customer relations for energy conservation technicians

| August 27, 2008  |ICPA’s Connecticut’s consumers have confirmed that our Energy Conservation Technicians, your HVAC technicians, are among the most respected sources for information on energy issues. 

Stop worrying about what the media says about us—our own techs are more trusted sources of energy information. By improving your employee’s communication skills, you will enable them to confidently speak to your customers about conservation and help them make informed decisions of ways to improve efficiency throughout their homes and businesses. Develop your relationships with your customers so they will turn to you for answers, not the natural gas company.

Your customer’s want and are looking for answers. Give them what they want. Listen actively, show respect, offer empathy and confirm their concerns. Provide suggestions and solutions. Our industry is facing many critical issues. Customers are overwhelmed by high costs and feel that they must do all they can to save money. With over 682,000 homes heated by oil, your Energy Conservation Technicians are perfectly situated to help your customers understand the benefits of oilheat for their homes and the environment. 

Let us give your employees guidance on dealing with the questions your customers have on energy conservation, bio fuels, energy costs, efficiency, equipment replacement, system controls, filters, lines, and much more. Don’t miss an opportunity for your company by not gathering enough information from your customers. Empower your technicians to communicate effectively with your customers to assure them that your company can guide them in making their home is as efficient as possible without compromising safety, reliability and comfort.

• energy conservation audits-Your Next Business Expansion Opportunity

| August 28, 2008  |ICPA’s surveys of Connecticut consumers confirms time and again that our HVAC technicians, our own Energy Conservation Technicians, are rated near the very top of those whom consumers respect for information about energy issues. Our HVAC techs are credible, respected, and unlike almost any other profession we are in the homes of 682,000 consumers already - so what else can we do for our consumers since we're already there and so respected? The whole home energy audit.

Did you lay off techs in mid-winter because consumers decided to delay work being done? Imagine that anyone would delay improving energy efficiency when they had a hard time paying for energy? This is about marketing and positioning what we do for success—and learning some new skills based on what we can do now for our customers. We can already use our skills with HVAC systems to help save energy-if we market our HVAC departments as Energy Conservation Departments. 

Now we can use our unique position of understanding the demographics of a changing population of consumers — and our position of being inside the home — to assist our customers with energy conservation all around the home. Expanding into saving electricity, improving insulation, reducing heat and cooling losses, control systems and looking at improving appliances and lighting. You can tailor the program to meet your customers needs. We’ll give you a step-by-step process to conduct an energy audit and suggest the tools needed to perform the audit and advise your customers in ways to save money through energy conservation.

For more information contact Kate Lennon at kate@icpa.org or call ICPA toll free at 1-866-521-ICPA

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CFTC DATA RAISES CONCERNS

The recent Commodity Futures Trading Commission (CFTC) data reclassification of speculative positions in oil markets has raised some serious concerns for oil commodity markets. The CFTC learned that one energy commodity trading firm, which had been registered as a commercial entity because the firm executed trades primarily for industrial firms that needed oil to run their businesses, was actually taking speculative positions on behalf of itself. At one point, the firm’s portfolio held 11 percent of the open interest for crude oil contracts on the regulated New York Mercantile Exchange (NYMEX). The newly reported data has raised concerns for several lawmakers including Congressman John Dingell (D-MI) who stated, “It is now evident that speculators in the energy futures markets play a much larger role than previously thought, and it is now even harder to accept the agency’s laughable assertion that excessive speculation has not contributed to rising energy prices.”

According to CFTC data this firm, which the CFTC has not released its name, was one of the most active traders on NYMEX which acquired a huge holding in oil contracts speculating that oil prices would rise. The contracts were equal to 57.7 million barrels of oil which is almost three days worth of U.S. oil consumption. The recent CFTC reclassification has added fuel to the fire that speculation is playing a much larger role in oil commodity markets than previously thought.

On September 15, 2008, the CFTC will provide a detailed report to Congress on whether speculation in commodity markets is driving prices to unprecedented levels. PMAA hopes the CFTC report will not be biased towards Wall Street investors and instead provide a fair and accurate assessment of energy commodity speculation.

On Thursday, PMAA sent another letter to members of Congress urging them to pass much needed legislation aimed at curbing excessive speculation in the oil commodity markets. Please view the Senate version and House version of the letter to Congress.  nd funding renewable power, which Democrats support. [PMAA]

TWO BILLS INTRODUCED DEALING WITH HIGH ENERGY COSTS

Before Congress adjourned for August recess, three Connecticut representatives introduced two pieces of legislation aimed at assisting families and small businesses with high energy costs. Rep. Christopher Shays (R-CT) introduced the Home Heating Oil Assistance Act of 2008 (H.R. 6784) which will provide a refundable credit against income tax to help struggling families heat their homes this winter. H.R. 6784 would provide a refundable tax credit of up to $500 or 33 percent of an individuals’ residential home heating costs. The amount would be reduced by five percent of an individual’s adjusted gross income if it exceeds $200,300 for a joint return; $182,400 for a head of household; $164,550 for an unmarried individual; and $100,150 for the taxable year when a married taxpayer files a separate return.

The same day Rep. Shays introduced his piece of legislation, Representatives Joe Courtney (D-CT) and Christopher Murphy (D-CT) introduced another energy tax relief bill, H.R. 6804, which would provide a temporary refundable credit of 50 percent of the individual’s annual residential energy costs up to $750 for individuals and $1,500 for joint return for either the 2008 or 2009 tax year. For taxpayers with adjusted gross income over $75,000 or $150,000 for a joint return, the credit would be reduced. Small businesses with gross receipts of up to $20 million without regard to the $5 million limit in the Internal Revenue Code Section 448(c) would be allowed a temporary credit for the 2008 and 2009 tax years to offset high fuel costs which would equal 15 percent of the amount paid during the taxable year for fuel used for business needs. Also, H.R. 6804 would make permanent the credit for non-business energy property and would amend Section 25C(b)(3) to increase to $1,500 the credit for qualified oil furnaces. With heating oil season around the corner, Congress needs to pass legislation to help those who need it most.  

For more information contact Gene at gene@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	$3.08
DPUC/Connecticut Natural Gas	$2.50
DPUC/Southern Connecticut Natural Gas	$2.59
DPUC/Connecticut Light & Power	$7.44
OPM/Propane Statewide Average	$4.95
OPM/Heating Oil Statewide Average	$4.03
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 - July 25, 2008

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