The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
Issue link: https://read.dmtmag.com/i/222327
dateline Connecticut Releases Draft Decision on Natural Gas Expansion The Public Utility Regulatory Authority released their draft decision on the natural gas utility's request to expand their pipelines by 900 miles and convert 280,000 homes and businesses to natural gas. The draft decision would increase rates to businesses who convert to gas by 50 percent, multi-family dwellings by 50 percent, homeowners more than 150 feet off a main by 30 percent and homeowners less than 150 off a gas main by 10 percent. Existing gas customers will also shoulder a portion of the cost through higher rates. It is clear in this decision that natural gas rates will be on the rise and that does not take into consideration any future commodity cost increases. The rate increases only include the cost of infrastructure and not the cost of the gas. Homeowners and businesses that want to convert will have to pay higher rates and pay for a new heating system if this plan is approved. PURA has also built into their decision a shareholder contribution component. If the utilities do not meet certain performance standards, PURA will require them to pay for the cost of the project. This is important because the utilities are totally averse to paying for the expansion of their infrastructure. Any requirement that would lead to the gas company using their own capital will halt their efforts to expand. The Connecticut Energy Marketers Association will continue to work with the Office of Consumer Council and the Attorney General to limit the expansion of natural gas. (See article on page 18 for more details.) Commodity End-Users Applaud CFTC Action on Speculation Limits A non-partisan alliance of industry and consumer groups praised the Commodity Futures Trading Commission for moving forward with a revised rule to limit speculative positions in commodity futures and swaps. The Commodity Markets Oversight Coalition has represented the interests of bona fide end-users of commodity deriva- Featured News Connecticut releases decision on NG expansion CFTC action on speculation limits LIHEAP funding for 2014 OSHA workplace hazard communication rule Biodiesel industry supports over 60,000 jobs OESP's new website Taco celebrates variable speed circulators Wesroc operations expands Survey finds energy efficiency lost on homeowners tives since 2007. The group applauded the approval of a draft rule to establish individual limits on speculative positions in commodities as required by Congress under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. "We view position limits as necessary to combat extreme price volatility and to guard against potential manipulation of vital U.S. commodities, from oil to corn," said Jim Collura, a spokesman for the coalition. "Excessive speculation threatens the welfare of the U.S. economy, harms American consumers and jeopardizes the ability of hedgers to guard effectively against price risks," he said. "Congress clearly understood this when it first authorized position limits nearly 80 years ago and why it mandated them in 2010." The CFTC is proposing revisions to an October 2011 rule to impose position limits in commodity derivatives such as futures and swaps. The original position limits rule was vacated by a District Court Judge in September of 2012 citing a failure by the CFTC to resolve perceived statutory ambiguities in its final rule. The newly proposed rule seeks to resolve these ambiguities and address the Court's concerns. When the 2011 rule was published, the Commodity Markets Oversight Coalition expressed concern about the efficacy of the initial limit of 25 percent of deliverable supply. Once today's Notice of Proposed Rulemaking is published in the Federal Register it will begin a 60 day comment period in which the CFTC will solicit input from the public on ways to improve the rule. Collura said the coalition will encourage all member organizations - including groups that represent farmers, petroleum marketers, truckers and airlines - to submit comments. "Fuel is airlines single largest expense, and it's also the most volatile. An increase of just a penny a gallon costs the airlines – and customers – $180 million," said David Berg, General Counsel for Airlines for America, a founding member of the coalition. "That's why it's so important that this process produce the strongest possible rule to protect American businesses and consumers from unwarranted price spikes." "It is very important that this process produce the strongest possible rule to protect American businesses and consumers from unwarranted prices spikes and to restore confidence in these markets," he said. Commissioner Bart Chilton also announced his retirement today. "The Commissioner has been a champion of end-users and consumers," Collura said. "He leaves behind a legacy of positive reforms and will be missed." The CMOC is a non-partisan alliance that represents commodity-dependent American businesses, end-users and consumers. Our members rely on functional, transparent and competitive commodity derivatives markets as a hedging and price discovery tool. As a coalition we favor policies that promote market stability and confidence, prevent fraud and manipulation, and preserve the interests of bona fide hedgers and American consumers. HHS Releases $2.9 Billion to States in LIHEAP Funding For Fy2014 The U.S. Department of Health and Human Services has announced the total fiscal year 2014 LIHEAP funds released www.fueloilnews.com | FUEL OIL NEWS | December 2013 3