Common Terms
The following are terms commonly used when discussing your propane or home heating oil account.
Cap Price & Fee
Maximum price CES will charge per gallon of product when the customer pre-buy’s the fuel requirements.
- Fluctuates depending upon date of contract signing and availability.
The fee is insurance (“Put-Option”) that is paid to the New York Mercantile Exchange (NYMEX) to secure customers quoted fuel cap price and insure customer will never pay more than the Cap Price they were quoted.
- The Cap Fee for Liquid Propane Gas (LPG) is $.12 gallon and Fuel Oil is $.25/gallon (as of 08-05-20 subject to change)
- The Cap Fee is Non-Refundable
Degree Day
- EXAMPLE: Outside temperatures range from a low of 53 degree F to a high of 74 degree F. for an average temperature of 64 degree F. which differs from the average of 1 degree. In other words: 1 Degree Day.
- EXAMPLE: Overnight low of 28 degree F. and a daytime high of 43 degree F. for an average of 36 degree F. which differs from 65 degree by 29 degree = 29 Degree Day.
- Degree Days are cumulative: From September 1st to May 21st (National Weather Service)
Enrollment Fee
A fee that is charged to handle processing, upkeep and maintenance of pre-buy accounts when using a credit card as payment method.
4% of Pre-Buy subtotal = (Price per gallon x Quantity Purchased + Price Cap Fee x Quantity Purchased)
E-Z Chair Plan – Budget
Budget plan allows the customer to evenly spread out the payments of annual usage over an twelve month period plus a one-time cap fee.
- Budget plans are adjusted according to the customers fuel usage and current market prices.
- PLAN A: Capped Price (See Cap Price); Steady to decreasing customer cost
- PLAN B: Market Price (See Market Price); Dynamic Consumer Cost (Increases and/or Decreases may be observed).
- Contact any one of our offices and speak to one of our representatives to receive the current Cap Price.
Fuel
Material used to produce heat or power by burning. Any various compressed vapor or volatile combustible liquids that are used to heat water, structural temperature regulation or in the cooking of food or other various uses.
- Includes Propane (LP), Fuel Oil, Kerosene, Biodiesel
K-Factor
Number that shows how fast a customer uses fuel
- Degree Days / Gallons of Product = K-Factor
LP
Liquified Petroleum or Propane
Market Price
Current per diem price that customers are charged per gallon depending upon usage.
- Contact any of our office to speak with a representative to receive the current market price.
Minimum Gallon Purchase
There is a 500 gallon minimum purchase in order to participate in the Pre-Buy (Capped Price Pre-Buy) and to receive any price protection.
Non-Fill Fee
Fee that is charged on emergency deliveries where a less than maximum delivery is made (i.e. filling the tank).That fee is currently $75.
Overage
Any gallons of fuel (LP or Fuel Oil) that is used above the customers allotted pre-buy amount for a given contract period.
- At the point which the customer uses more gallons of fuel than pre-purchased, the customer will be charged the most current Market Price for all quantities of fuel.
Pre-buy Plans
The following are the pre-buy plans that are available:
Capped Price PreBuy: Customers cap the amount of gallons they would like to use in for the heating season in advance to secure a “ceiling price.” The cap fee must be paid in advance for the number of gallons being capped. There is a minimum 500 gallons associated with this pricing option. The cap fee is non-refundable.
- Fixed Price PreBuy: Customer is able purchase a desirable amount of gallons for the heating season in advance at a fixed price. There is a minimum of 500 gallons associated with this pricing option. Other restrictions may apply.
- Pre-Buy is available from 10/1 through 4/30. Gallons can be purchased up until 9/30 or until we have sold all of the gallons we have purchased. Whichever comes first.
Pressure Test & Fee
A required diagnostic test performed by our technicians on every new LP (propane) installation or existing gas supply piping.
- The test assesses the integrity of the piping system to assure no leaks and maximize safety.
- Technicians supply the gas line with pressurized air and measure the drop in pressure over a set time.
The pressure test fee is $50 plus applicable county sales tax rate is done by the driver when the delivery is made. If a service tech is dispatched, rate is $119 plus tax for a min. 1 hour during regular business hours plus parts if needed. If the service is after hours, the the charge will be the overtime rate of $179.00 plus tax for a minimum of 1 hour plus parts if needed. New Jersey rate are $124.00 regular and $186.00 overtime.
Regulator
A device that is used to control the flow of gas and lower the pressure of the tank to the appliance(s) in the gas system.
- The regulator not only acts as a control regarding the flow and distribution of propane but also as a safety barrier between the high pressure of the tank and the end use appliance(s).
Weigh for Credit
A variable fee is charged when customers terminate their service and wish to receive credit for gas in tank. This fee is to weigh the tank for credit.
- In the case where a customer does not want credit for the product left in the tank, no fee is charged.
