Wednesday, February 19, 2014

And the oil budget is blown

We got an oil delivery on Monday for 188 gallons (we shoot for 150...that is about half a tank).  Our mid-February delivery last year was 105 gal.   Each month has been over the 150 gal goal....even with plastic on the windows, adjustable thermostat, keeping the house cool....Amazing what a colder than normal winter will do, considering nothing else changed.

With this last delivery, we are at 697/700 of the budgeted oil.  The March and May delivery will be at the "going" price of the day.  Our cap had us paying $3.949/gal.  Monday's going price was $4.299.  UGH.

We will continue to pay our $339 a month until the balance is zero.  That is how it is supposed to go..an even budget payment spread out over the year.  Most likely this is will happen in August, when the contract resets.  The bummer is that usually we can zero out in May....and then we can put the June and July payments toward something else.  Not this year!

Of course, we will have to decide how much oil to contract for next year.  Last year we used just under 700.  This year looks like it will be closer to 950.  Darn cold weather!  I am leaning toward 800....split the difference.  I don't want to budget for too much, as that will raise the monthly cost, but I also don't want to end up like we did this year.

I will have to have them run the usage for the past 4 years....I know it has been going down each year.  This year spiked.

Guessing at numbers....the cap rate will probably be around where it was this year....plus the cap rate fee, the oil, the service plan.....I am estimating the new contract in August will be for about $4200...putting our monthly oil at $381.  Greaaaaaat.

Electric went up $10 a month since the rate went up. 


I know that some people have said "that seems high" when I have talked about gas prices, car stuff, utilities.  But this is what it is like here.  This isn't mis-spending of money.  This is the price of stuff here.  Gotta love New England.....

I can't wait to find out the new mill rate for the taxes....Yip.  Pee.

11 comments:

  1. Yikes, 4.2k on home gas... and that is without including the electric on it. I think 800 is a good number too... you're right, this year was very out of the ordinary, and it's not likely to be repeated next year. Possible, but not likely. Last year, at least here in MD, we had no snow at all, no days below 25. This year we reached -16 and at least a week's worth of 15 degrees or below.

    ReplyDelete
    Replies
    1. I know this year was out of the ordinary...unfortunately in August when I did the plan....I didn't know this! But yes, $4200 for just heating oil (heats house and hot water). Electric this year is $130 a month....so $1560 for that. That is $5760 for just that stuff. *sigh*

      Delete
  2. I was dreading getting my January natural gas bill because it was so cold. To my amazement it was only $113(and that was an actual reading). My hydro is sitting with a mere $6 credit for budget billing so they will likely raise the monthly payment soon.

    Groceries are what is eating up all my money. I want to pay down debt faster but it seems I am at the grocery store every single day. I have to get better at making school snacks. I am going broke one school snack at a time :)

    I think a lot of Americans are struggling with heating bills this year. Better to budget higher
    for next years oil bill. Hope you can lock in at a reasonable price.

    ReplyDelete
    Replies
    1. Glad your bill wasn't too bad! Want some of mine??? LOL

      I am lucky that my kids aren't huge "snack" kids. But all of a sudden, Sassy has fallen in love with yogurt! The kid is going to eat us out of house and home just on her yogurt consumption.

      As for the oil bill for next year....I have absolutely no control over the rate. Some of it has to do with timing. I have called to check the rate and call again a week later and it is 15 cents higher. That is the gamble with the cap protection....you pay a little more for it, but if the rate drops, you get the lower rate. This is helpful when your locked rate is high....and you are banking on it dropping. We did it for this year and it backfired....we locked in 3.949, and it has never dropped. If we did a pure lock in, then we would have saved about $300 for the year. But if we didn't....and the rate dropped to 3.85...we would have missed out on that savings. It is all a crap shoot.

      Delete
  3. Can you install a natural gas furnace and gas water heater?? Here in TX we've had a bad winter and my gas bill was 97 this month, highest ever but it is warming up now, past 3 days it has been in the high 70's.

    HS

    ReplyDelete
    Replies
    1. Yes we can, but at this time the upfront cost is too high. The house has to be retrofitted and we don't have space for ductwork. The furnance and water heater will be about 6k to have it installed, and then the cost of making it all work.....

      Delete
  4. wow - that is crazy what you have to spend in your area of the country! Our whole annual heating (all electric) and electricity only costs us about $2400 a year and that includes heating our garage/shop. Hope your weather heats up soon!

    ReplyDelete
    Replies
    1. CT is one of the most expensive areas to live in. Our taxes, food, gas, utilities....are all higher than most areas of the country. One thing we have always said is if we relocated and took a pay cut, we would have to factor in our savings from not being in CT to see if we actually would be losing money!

      Delete
  5. This year how about consulting the Farmer's almanac or something to see what their predictions are for next Winter's temps. Might help you come to a good decision on how much to plan for next Winter. I hear 2015 is an el Nino year which could mean fewer Artic blasts in the Mid-Atlantic states.

    ReplyDelete
  6. Ouch, that sucks. We did have a nasty winter this year and it's not over yet! do you have a fireplace you can keep going or even some space heaters you can take room to room?

    ReplyDelete
  7. That has to be so hard to figure out how much you will need. Seems pretty expensive too! I've never had to do that, as we have gas and electric in our home and we can sign up for their budget plan. I wouldn't know how to budget for oil. I hope next year is better for you, this winter seems to be going on forever.

    ReplyDelete