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

Are 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.

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 about 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.

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.