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Clyde S. Walton gives you choices for protecting your price for heating fuel and for controlling your winter fuel bills. That’s especially important with prices as volatile as they are right now.
We do this through our EZ Pay program, which gives you two price protection options. |
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1. EZ Pay with a Price Cap: We will spread your annual fuel costs over 10 months, billing you at either (a) a predetermined price cap or (b) our current retail price, whichever is lower on the day of delivery. This protects you whether prices go up or down.
An enrollment fee is charged for this upside and downside price protection. This is necessary because our suppliers charge us a hefty premium for the purchasing flexibility that allows us to lower your price when market prices fall.
Our ability to offer fuel at a capped price is based on the purchases of fixed price futures contracts, but involves one extra, important step.
To guarantee that your price won’t go above a certain price, but can go down if market prices fall below where they were on the day we bought the fixed price contracts, we also purchase “futures options.”
These cost us more per gallon, which, we in turn add to your cost, but the “price insurance” provided by these options makes the cap work. |
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| 2. EZ Pay with a Fixed Price: We will spread your annual fuel costs over 10 months and bill you at a predetermined fixed price. This fixed price will not go up or down during the contract period, regardless of what happens with retail prices. There is no enrollment fee for this upside-only price protection. Because we will have already contracted for your fuel at this one fixed price, we cannot lower it if market prices drop. But a fixed price also means your price will not go up—even if market prices skyrocket. |
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EZ Pay offers another benefit if you have one of our service plans. You can roll the annual cost of your plan into your monthly EZ Pay payments.
EZ Pay customers with price protection also get the convenience of automatic deliveries. |
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| Pay As You Go |
| Although customers with EZ Pay have saved a lot of money by choosing a price cap or a fixed price, you are not obligated to sign up for these programs. In that case, when we make a delivery we will simply charge you our daily rate, which rises and falls with the market throughout the heating season. |
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