« Cable price changes... | Main | I added an email subscribe to the sidebar »
July 30, 2005
Another good move for you...pre-paid gas
We (superstar negotiator Ed) negotiated a fixed-price contract for propane for this winter at $1.37/gallon. That applies to the association and all the owners!
The current quotes for similar fixed-price contracts from propane dealers in VT is around $1.90- $2.00 for the upcoming season and rising. The spot market earlier this month was $2.45!
So what does that mean for you? And what are the downsides?
What this means to you is that while the cost of energy is up 50% from last year, the dollars that you spend on gas will be about the same as last season assuming same levels of usage. If we did not do this, you would be spending about $1,000 more each for gas this upcoming season.
The market prices would have to drop by around 40% before we would see any negative impact. (as natural gas follows oil futures, oil would have to drop from $60 to $35- not likely to happen in the near term)
Thanks Ed!
Posted by Francois at July 30, 2005 09:42 AM