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Fuel Oil News February 2014

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10 February 2014 | FueL OIL NeWS | www.fueloilnews.com CONNeCtICut Energy Marketers Association DEEP Commissioner Dan Esty Retires Chris Herb, president of the Connecticut Energy marketers Association passed along the following note: Today, the architect of the natural gas conversion and expansion plan (DEEP Commissioner Dan Esty) announced that he would be stepping down in February to return to his previous job at Yale as a law professor. Although media reports will tell a rosy picture of his tenure at DEEP, it has been rumored for several months that Esty lost favor with Governor Malloy after several political blunders that the administra- tion took heat for. According to many political insiders, the natural gas plan was 'sold' to Malloy by Esty who's environmental agenda overshadowed the governor (a 'no no' when it comes to commissioners who are expected to promote their boss). Herb stated that CEMA will reach out to the interim commissioner and untimely to any new commissioner that is appointed to see if changes to the natural gas plan can be made. He sees a potential opportunity to make gains that Esty was unwilling to consider. NeW HampSHIre Fred Fuller Oil and Propane Controversy As January got underway numer- ous complaints came in that customers served by the New Hampshire-based company Fred Fuller Oil and Propane were not receiving timely fuel deliveries. Furthermore, attempts to contact the company invariably resulted in a busy signal. The company's attorney cited the severe snowstorm that hit at the time and a coin- cidental failure of its phone system as being the source of the problem. Local newspapers speculated that financial problems might be the problem citing an IRS tax lien. Given that Fuller is the largest inde- pendent dealer in the state the number of customers disrupted was significant. New Hampshire Gov. Maggie Hassan contacted Oil Heat Council of New Hampshire Director Robert Scully to as personally for his help in working with OHCNH mem- bers to get oil to the customers in need. Fuller (with some help from his peers) was able to get caught up by January 10; however, there have been some nega- tive impacts from the widely publicized disruption. As Sculley noted in an email: One of the unintended consequences from the Fuller fallout was House Bill 566 which was scheduled to be defeated on the House floor last Wednesday. As proposed HB566 would have regulated pre-buy contracts. After three years the House Commerce Committee agreed with the OHCNH that what was proposed in HB566 would not prevent pre-buy failures. The short version is HB566 is no longer going down to defeat and the governor and others now want to revisit pre-buy contracts. Sculley believes that there now will be a strong legislative push to pass legislation on this issue from the legislature, most likely from the governor's office and the attorney general's office. OHCNH will be working with its members to develop a strategy and be part of the legislative pro- cess should it develop. NeW yOrk Tom Peters (ESPA) Reported the Passing of Don Isburgh on Oct. 25, 2013, at the Age of 85 D o n I s b u r g h w a s t h e president of Amsterdam Oil Heat Corporation in Amsterdam, N.Y., and was always proud of the fact that he was the fourth generation in the fuel business. He was very active in the industry and served as president of the Oil Heat Institute of Eastern New York, of which he was a founding member and original incorpora- tor. He was also a trustee of the Insurance Trust Fund of the Empire State Petroleum Association. In 1985, Amsterdam Oil Heat Corp. was sold to J. H. Buhrmaster Company, and Isburgh remained with the company and was manager of their Amsterdam office until 1990. After retiring for a brief period, he returned to work as an executive assistant in Buhrmaster's main office until his final retirement in April 1999. Survivors include his wife, Mary Frances Kinsman; two sons, Robert and Andrew; a half-sister, Carolyn McCoy; and three grand- children. VermONt Propane Proposal The House Commerce Committee heard testimony from Vermont Fuel Dealers Association Executive Director Matt Cota and Assistant Attorney General Wendy Morgan on the status of Vermont's pro- pane regulations. Complaints to the Consumer Assistance Program about pro- pane have declined significantly in response to the laws passed over the past five years. However, the attorney general's office has proposed new legislation (H.609) that seeks to "clarify" Vermont law with regard to termination of service. Under current law, a propane dealer is required to refund the consumer within 20 days of being notified by the customer in writing that they have switched suppliers. If the dealer fails to mail a refund check within 20 days they are required to make a penalty payment of $250 to the consumer. This increases $75 per day until the refund and penalty payment have been mailed or delivered. As of July 1, 2013, a cap was placed on the total amount of the fine. This cap equals 10 times the value of the gas, plus $250. VFDA insisted on the "in writing" pro- vision when the law was passed in 2011 to establish an official marker for the penalty clock. It provides safeguards for a propane company whose tank is disconnected by another company and are not made aware the customer switched. However, the new legislation would not require written noti- fication if the propane seller picked up their tank or otherwise acknowledged that the customer had terminated service. If you have any questions or concerns about this bill, please contact VFDA. STATE BY STATE N e w s

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