Comfort Line - Questions and Answers

This quarter our Questions and Answers segment discusses oil deliveries and Hart & Iliff ’s testing of a new, more accurate delivery system.

As an oil heat customer, what are my delivery choices?

You can choose to receive deliveries on a will-call or an automatic delivery basis. Will-call customers monitor their own tanks and call when they need a delivery, providing us with a minimum of 48 hours notice. For automatic delivery customers, we use our computerized degree day system to determine when to make deliveries to your home.

Do you deliver when the price is the highest?

No, our profit margin, which is the difference between the wholesale and retail price, remains the same regardless of the price of oil. We deliver only when our system tells us you need a delivery.

Is there an extra charge for automatic delivery?

No, the price for will-call and automatic delivery customers is the same.

How does degree day delivery work?

Degree days are a measure of how cold it is outside, equal to the difference between the average temperature for the day and 65°F. For example, if the average temperature on a particular day is 30°F, that would be the equivalent of 35 degree days. We take a degree reading each day and enter it into our computer. Using the tank size and the degree days, our computer develops a burn rate that tells us how much oil is used for each degree day. If your oil fired heating system makes your domestic hot water, our computer takes into account a hot water factor as well. Our system is designed to generate a delivery ticket so that we make a delivery when the reserve in your tank is approximately 30% of the tank size.

How accurate is the degree day delivery system?

It tends to be reasonably accurate during the winter months but somewhat less accurate during the fall and spring. The accuracy can also vary from customer to customer. This winter, Hart & Iliff began testing a new delivery system developed by the Energy Research Center Inc. This system is called Delivery Cost Reduction (DCR).

How does the DCR System work?

DCR is a patented delivery system developed by an engineer and a physicist. It uses degree days, the passage of time, regression analysis and a series of mathematical formulas to determine the appropriate time to make a delivery. How accurate is the DCR System? Preliminary testing indicates that delivery differences with the DCR System are generally less than 1% and the average fuel delivery projection is typically within 10 gallons of the actual delivery.

When will Hart & Iliff begin using the DCR System?

Hart & Iliff is one of the first oil companies in the country to test this new delivery system. Our plan is to deliver through this winter using our old degree day system and, for each delivery, compare the degree day projection and the DCR projection with the actual delivery. If the system works as well as expected, we will begin using it for actual deliveries in the spring.

Besides making more accurate deliveries, are there any other advantages to the DCR System?

The DCR System should make our deliveries significantly more efficient. It will also help determine if a tank is leaking, if there is a problem with a heating system and to more accurately size new equipment.