State Senate to debate oil bill

By AARON SANBORN

asanborn@seacoastonline.com

March 29, 2011 2:00 AM

 

CONCORD — The Senate version of a bill that aims to regulate guaranteed price plans and prepaid contracts for heating oil, kerosene and natural gas is scheduled to hit the Senate floor on Wednesday.

 

Senate Bill 197 passed the Senate's Commerce Committee last week and will now be debated on the floor.

 

The bill establishes a provision where companies offering prepaid contracts for heating fuel reserve funds equivalent to 75 percent of the total amount of prepaid balances in an escrow account with the New Hampshire attorney general's office named as beneficiary.

 

Officials at the AG's office say the provision allows for consumers to be reimbursed if something goes wrong with the oil company.

 

The same bill was initially introduced in the House as House Bill 581 by state Rep. Lee Quandt, R-Exeter, but it stalled in the House when it was retained by Commerce and Consumer Affairs Committee because of concerns over a no reporting requirement to show oil companies are complying with the new law.

 

Quandt worked on the bill with Assistant Attorney General James Bofetti in response to the Flynn's Oil case, in which the company went bankrupt in December 2009 and left more than 300 customers of the Exeter-based company without the $554,603 worth of oil they purchased at the start of the winter season.

 

Soon after the bill stalled in the House, Sen. Molly Kelly, D-Keene, approached Bofetti about proposing the bill in the Senate in response to the unexpected closure of Keene oil company Jackson Energy earlier this month.

 

"This bill is a positive move for both consumers and businesses," Kelly said. "We will provide greater protections for consumers that enter into prepaid contracts and allow the industry to maintain its reputation after a few recent and unfortunate calamities"

 

If the bill passes the Senate this week, Kelly said she'd work with the House to clear up any concerns about it.

 

"This is a serious problem that needs to be addressed in a timely manner in order to protect both consumers and fuel distributors and prevent further losses to both parties," Kelly said.

 

Quandt said getting the bill through Senate would be a positive development but admits that he's still expecting a fight from the House.

http://www.seacoastonline.com/apps/pbcs.dll/article?AID=/20110329/NEWS/103290329/-1/NEWSMAP