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Newburgh NY Oil Prices Can Soar in the Winter ~ CAP Programs Can Help

Are You Heating Your Home in Newburgh NY with Oil?

   Then you might like to save money and participate in a Price Protection (CAP) Program


thermostatAre You Heating Your home in Newburgh NY with Oil? Then you might like to save money and participate in a Price Protection Program.

Different parts of the country people heat their homes with different sources. It can be electric, propane, natural gas or oil in Orange County NY. Knowing how to set up  the utilities prior to moving into your new home can be confusing with what company to call.

If you have Natural Gas or Electric, then a simple phone call to set up the account is all you would need. Prior to closing a buyer would let the company know the date of the closing. Questions you would be asked is about personal credit and location of the property. The seller will also be letting them know that they will need a final bill an where it is to be sent after the actual closing takes place.furnace

Propane is dependent on the tank you have and if it is underground. If you have above ground tanks then you can shop around to any propane company.  Underground tanks must be filled by the owning company, or you can choose to buy the tank. If you own the tank, then anyone can deliver propane. Budget plans like the ones listed for oil are similar..

Oil is bit different. There are budget plans that can help save money for the owner. Pay for the expected amount over ten months and then  you will know what is expected for the budget. The question that comes up is what if the rates go up or down. In the last few years with oil prices creeping up quickly people have been nervous Oil Truckabout soaring prices of oil.

Most of the local oil companies have a price protection program in place to help with this issue. Personally, I have found that being on a budget system for the entire season works best having the oil delivered automatically all season long. I contract with them for the entire season  There are no worries of running out of oil, as they are responsible to estimate the amount I need and when to deliver. The calculations are based on the size of the home and the number of degree days. They show up and leave me a receipt. Automatic delivery  is required for this to work. In order to have a CAP rate, I shop around to find the company that gives me the best deal. I pay a flat fee of $150 (fees can vary but most are competitive) to lock in a rate for the season. If the price goes higher I am locked in to a specific number that it cannot exceed. Should the oil prices go lower, I get the adjustment. This is a win win as the company is happy to lock in business. They can negotiate the best prices based on volume of clients. I am guaranteed not to have the price soar to unexpected numbers during that time. The contract is usually signed during the summer and is for the season until April. The payments are made over ten months, and the price is renegotiated each summer.  During this time I am required to use only this company for the season as part of my contract.
Heated Home
It is good to know how things work in your new home. This is just one part of what you will be learning. It can be overwhelming when moving in just how things work. Each area of the country is a bit different. I like to help clients understand the process and assist them to make a smooth transition when they move in to their new home. 

Janis Borgueta is a Realtor in Newburgh NY. Her blog is about living, working and real estate in The Hudson Valley. If you would like more information about Real Estate in Newburgh NY and Living in the Hudson Valley, please subscribe to this blog. When you are looking to buy a new home.... Search the MLS for New Homes in Newburgh NY.

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14 commentsJanis Borgueta • August 05 2012 02:05PM

Comments

Hi Janis - Interesting and informative post. I've never lived in a home heated with oil, and hadn't thought about it much, other than the usual news item about prices rising during the winter.

Posted by Dick Greenberg, Northern Colorado Residential Real Estate (New Paradigm Partners LLC) almost 2 years ago

Hi Dick ~ I get buyers that have only lived in areas that have natural gas. When they come to our area they are shocked to find oil, propane.. and then the big thing is well and septic. Oil is very prevalent. The companies negotiate volume on the futures market in the summer and then work with the prices. It is only logical for them to line up clients that way. If you wait until the middle of October to sign on with a company you can be paying significantly more. It really does matter where you live when buying a home and how things work! =)

We are really not that far upstate, but we can be a little bit country. A trade off for all the beauty of the Hudson Valley.

Posted by Janis Borgueta, LIC R.E Salesperson - Homes for Sale Newburgh NY (Key Properties of the Hudson Valley ~ 845-527-7115 ) almost 2 years ago

Janis, Even though we have gas, I know what your talking about....we too on Long Island were called about selecting our own suppliers rather than a monopoly by the main supplier. Budgeting for the heavy using months is key.

Posted by Ellen Caruso (Daniel Gale Sotheby's International Realty) almost 2 years ago

Hi Ellen... for us the best deal is to lock in a price so that it does not get out of hand should the prices get crazy. It has worked for me in the last ten years that i get the best rates. I had someone else prior to this that felt he could charge whatever he wanted. When the prices really soared, it was much more noticeable that he was more expensive than everyone else.... funny when I left him, he was begging me to come back at a lower rate.

Posted by Janis Borgueta, LIC R.E Salesperson - Homes for Sale Newburgh NY (Key Properties of the Hudson Valley ~ 845-527-7115 ) almost 2 years ago

Janis, with fuel prices rivaling the stock market, this is a great tip and idea for users of oil for their furnaces. Wish we could do the same with our gasoline prices for cars!

Sharon

Posted by Sharon Alters, Your Fleming Island Relocation Agents. (Coldwell Banker Vanguard Realty) almost 2 years ago

Sharon... you have that one right! If only.......

Posted by Janis Borgueta, LIC R.E Salesperson - Homes for Sale Newburgh NY (Key Properties of the Hudson Valley ~ 845-527-7115 ) almost 2 years ago

heating with oil is a new concept for me - natural gas is most common in my area, followed by electric heat and hydroponic heat in one style of homes.

I'm in NY now, and after the heat and humidity, I can barely imagine EVER wanting heat!!!! (LOL)

Posted by Lottie Kendall, Serving San Mateo County and San Francisco (Today | Sotheby's International Realty) almost 2 years ago

Janis - this is a great article for oil consumers in Orange County, NY. I like the idea of price protection and when we lived in a home heated with oil we were on automatic delivery. It's the best way to go so you don't run out in the dead of winter!

Posted by Kristine Ginsberg, Morris County, NJ Stager (Morris County, NJ: Elite Staging and Redesign, LLC) almost 2 years ago

Anything to help keep those prices down is, I am sure, appreciated!

Posted by Barbara-Jo Roberts Berberi & Corinna Birgit Cromartie, Palm Harbor & Dunedin FL Residential Real Estate (Charles Rutenberg Realty) almost 2 years ago

Lottie ~ Not much in the way of natural gas here!

Kristine ~ Price potection is a good idea...

Barbara Jo...  a good number of buyers don't know much more than how things work where they live. I had a client once that wanted to know who to call to set up her well water bill.

 

Posted by Janis Borgueta, LIC R.E Salesperson - Homes for Sale Newburgh NY (Key Properties of the Hudson Valley ~ 845-527-7115 ) almost 2 years ago
Janis I've never lived in an oil heated home. Never really thought about until reading your post. Good information for your area people. If the winter temps are as extreme as the summer has been we will all be looking to save in all areas!
Posted by John McCormack, AlbuquerqueHomes.com (Albuquerque Homes Realty * www.AlbuquerqueHomes.com) almost 2 years ago

John ~ Last winter was great... the temps stayed on the warmer side for winter with almost no snow.. That makes me happy.... although it is pretty for about ten minutes, i really hate the cold gray days! 

Oil heat is really a big thing here, and more recently propane is becoming popular. Not much for natural gas services here. 

Posted by Janis Borgueta, LIC R.E Salesperson - Homes for Sale Newburgh NY (Key Properties of the Hudson Valley ~ 845-527-7115 ) almost 2 years ago

Janis, this is a great information for would be homeowners especially to understand.  So important and for them to find out the most efficient way to heat your home can be a huge consideration in a home purchase.

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate) almost 2 years ago

Ginny ~ it is hot outside now, but in a few short months the heat will be turned on again! It is good to know what to expect in terms of cost to heat the home and just how to prepare for the season. Getting the best price is not hard to do.. a few phone calls and they take care of all the paperwork quickly. 

Posted by Janis Borgueta, LIC R.E Salesperson - Homes for Sale Newburgh NY (Key Properties of the Hudson Valley ~ 845-527-7115 ) almost 2 years ago

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