How the Baker Petroleum Budget Plan Works

We determine the amount of your monthly bills by estimating your heating costs for the coming year. We look at how much propane or heating oil you have used in each of the last two years (if that information is available) to estimate how much you will use in the coming year. We then use our best estimate of average heating oil costs for the year ahead to arrive at an estimated total cost.

We multiply the number of gallons we estimate for you by the average price we anticipate to arrive at an estimated total cost. This gives us a total estimated cost for the year, and we divide that by 10 or 12 months (depending on which option you choose) to arrive at your monthly payment amount.

Whether you choose a 10 or 12 month budget plan, your fuel costs will be spread out evenly throughout the year.

From Estimated cost to Actual Cost

We use two estimates to calculate your total cost. We estimate your total fuel usage, and we estimate your average cost of a gallon of heating oil. Our estimates can be off the mark if the weather is abnormal or the price of heating oil changes dramatically. As a result, your total cost can be higher or lower than we expected.

If your cost winds up being less than anticipated, we can credit the overpayment to your Budget Plan account for the following year, or we can reimburse you.

If your cost winds up being greater than anticipated, your last bill of the budget year will be larger to cover the unpaid balance. If you prefer, you can call our office at any time and check the status of your Budget Plan account. If you choose to pay more than your regularly scheduled payment in any month, we will credit the difference to your account and reduce your final payment of the year accordingly