Mainers giving cold shoulder to fixed-price heating oil plans

PORTLAND – Mainers are turning a cool shoulder to fixed-price heating oil plans in their quest to cut heating costs for the upcoming winter season.

Fixed-price plans were popular last year. But instead of rising during the winter as they normally do, oil prices fell and homeowners found themselves paying hundreds of dollars more at their locked-in prices than if they had paid daily market prices.

John Massengill of Scarborough thought he had gotten a good deal when he signed up for a plan last year that had him paying $2.45 a gallon for oil. But with last winter’s low prices, he now figures he paid $800 more than he had to.

“We ended pretty much upside down all year,” Massengill said. “I will not do that again.”

With fall and the start of the heating season just a few weeks away, oil dealers and industry followers say that Mainers are turning away from the fixed-price plans to keep their heating costs in check.

A higher proportion of Mainers heat their homes with oil than any other state, burning through 850 gallons on average at a cost of more than $2,000 a year, according to the Maine Oil Dealers Association.

Historically, customers with fixed-price plans have won out over those without, said Doug Morell, vice president of energy at Downeast Energy in Brunswick. Morell said there have been only two or three winters since 1991 when oil prices dropped as they did last year.

Still, many customers are reluctant to sign up after last year. At Pine State Energy in Scarborough, President Sam Marcisso said 25 percent to 30 percent of his customers opted for fixed-price plans last year. He’ll be surprised if 10 percent to 15 percent do it this year.