BUDGET
PLAN
Budget
Plan
Our
nine (9) month budget plan is for our customers who like the convenience
of knowing from month to month the amount of their heating oil
bill. This helps many people to effectively plan their household
budgets. We have persons in virtually every walk of life using
our budget plan so it has absolutely nothing to do with where
you live or your income. This plan simply allows you to equalize
your payments.
Eligibility
for Budget Plan
Only those customers who have approved credit and whose accounts
are in a current status are eligible for our budget plan. Once
you have notified us that you have selected our budget plan, the
first order of business is for us to estimate the amount of the
upcoming season's fuel oil bill for your home. This is normally
done by using your account history. Once the number of gallons
has been determined, this figure is multiplied by the projected
cost of fuel oil. The resultant dollar figure is then divided
by 9 to determine each of your monthly payments. Beginning in
June, each payment is due by the 10th of each month. At the end
of the nine months, which is May, you will receive a statement
which will show you all of your charges and payments for the budget
year just ended. Any balance due Benton Oil Service, Inc., is
due by the 10th of June. Should the balance be in your favor,
we will automatically apply it to your next season's budget plan,
or, if requested, refund the amount in full.
It
should be noted that once a budget season has begun, a customer
cannot select the budget plan until the following year. Also,
your account is neither charged nor earns any interest on the
outstanding balance. However, should you miss any two consecutive
budget payments, your account automatically reverts back to a
regular account status, and any balance becomes due immediately
and is subject to our normal service charge. All customers who
select the budget plan are automatically placed on our Guardian
Fuel Oil Service list.
DEGREE
DAY SYSTEM
Degree
Day System
As you may know, the degree day system is based on the amount
of fuel a customer has consumed between two or more deliveries
and the high and low outdoor temperatures during the same period.
A degree day is defined as one degree of temperature below 65°F
in the average temperature of one day. In other words, to arrive
at the number of degree days in one day, we call the weather bureau
and obtain the official high and low temperatures for that day.
The two figures are then averaged, and the number of units this
average is below 65°F is the number of degree days for that
day. For example, if for Tuesday, November 3, the high temperature
is 7°F and the low is 54°F, the average is found by adding
70 and 54, which equals 124, and then dividing by 2. The resultant
figure is 62, and by subtracting 62 from 65, it is determined
that there were three (3) degree days that day.
"K"
Factor
To determine a customer's usage or "K" factor, we first
compute the number of gallons of fuel oil used in a given period.
Then, because we maintain a cumulative total of degree days for
the same period of time, we can figure the "K" factor,
or the number of degree days that one gallon of fuel will last
a particular customer at his current rate of consumption. This
factor is arrived at by dividing the number of degree days in
any given period by the total number of gallons of fuel consumed
during the same period. For example, if during the month of November
your furnace burns 200 gallons of fuel oil and assuming that we
had 300 degree days, your "K" factor would be 300 divided
by 200, which equals 1.5. In other words, each gallon of fuel
oil provides you with 11/2 degree days of heat.
The
next step in the degree day system is to determine how many days
supply remain in your tank once it has been filled. From your
total tank capacity, we subtract a number of reserve gallons which
depends, of course, upon the size of your tank. We then multiply
the number of gallons of usable fuel by the "K" factor,
and we have what is known as the Degree Days of Usable Fuel. Using
this figure, we arrive at the degree day of your next scheduled
delivery.
As
you can see from the above, we must keep an individual record
on each customer, and your "K" factor may vary greatly
from that of the person living next door because of a difference
in the living habits, type of home, insulation installed, and
many other factors.
Check
Your Supply
As has been previously mentioned, although our Guardian Service
has been designed and proven to be reliable in 99% of the cases,
you should not hesitate to check your supply of fuel oil as often
as your experience dictates. Again any change in your living habits,
etc., may result in a significant change in the amount of fuel
oil your home is consuming. Should you find that your fuel supply
is becoming dangerously low, please contact our Customer Service
office, and we will confirm your next delivery and make any changes
that your particular circumstances may dictate.
