District 7

Just this past July, people were in a frenzy. Oil prices were high and were projected only to get higher. Gas guzzling vehicles were being traded-in at a record pace, people were scaling back their road trips, and everyone was scrambling to lock-in their fuel prices for the coming winter months. Locking-in at $4.25 or $4.50 per gallon was a deal and people were happy to do it. 

Economists and some of our country’s greatest minds projected oil to reach $6 a gallon by winter. Smart people were locking into budget plans and if you were fortunate enough to be able to pay up front, you did. And, we all know what happened. The market collapsed and oil prices took a nosedive. Just last week, the average price per gallon of heating oil was hovering right around $2.15.

This session, I submitted LD 355, “An Act to Protect Consumers of Home Heating Fuel.” This bill developed out of frustration experienced by a constituent of mine because she was unable to extricate herself and her family from a contract for home heating oil. She was having trouble making the payments on her contract, and could purchase oil at a much cheaper rate if she could just get out of the contract. I advised her to talk with the company representative, and to request a copy of their contract termination policy.

I learned that there was no termination option in the contract, and that she was just “stuck.” I have since learned that lots of Maine families were similarly stuck, when their contracts became burdens because the price of home heating oil dropped so dramatically.

The bill I submitted amends the appropriate statutes to require that contracts include a conspicuous cancellation clause that clearly states the terms and conditions by which a consumer may be released from the obligations of the contract, including any fees, penalties, notice provisions and deadlines that might apply.

I’m not suggesting that dealers should be forced to take a loss. I’m not suggesting that dealers should do anything except include in their contracts the manner in which the customer can withdraw. If the penalty to withdraw is the payment of a 10 percent penalty or a 200 percent penalty or something in between, that’s up to the dealer. But whatever it is, it should be clearly spelled out for the customer.

The bill had a public hearing before the Legislature’s Business, Research, and Economic Development Committee in late February, and just last week the committee voted to “carry the bill over” to next session to so they can see what the Maine Oil Dealers Association does at their annual meeting in April to encourage their members to clarify their contracts.  It’s a positive step in the right direction.

In closing, if I can ever be of any assistance to you or your family, please do not hesitate to contact me. I can be reached at home in South Portland at 799-8229, or in Augusta at 287-1515, or toll free, 1-800-423-6900.  I look forward to hearing from you.