A Glossary of Heating Oil Terms
(image: climateprogress.org and Nick Whitaker via heatingoil.com)
AFUE Rating: An acronym for Annual Fuel Utilization Efficiency, the AFUE rating indicates the percentage of heating oil that is successfully converted into actual heat for a home. The higher the AFUE percentage is, the better the conversion rate from oil to heat. For example, an AFUE of 85 percent means that 85 percent of fuel is being successfully used to heat a home, while the remaining 15 percent is lost, in the form of exhaust.
Automatic Delivery: A service provided by some heating oil dealers to consumers with full-service contracts, automatic delivery relies on software systems that help dealers to monitor local temperatures and estimate heating oil consumption in order to accurately gauge a customer’s supply. When calculations show that a consumer’s supplies are low, oil companies will automatically make a delivery. Often customers do not have to be home to receive oil and will instead be billed after the delivery.
Biofuel Heating Oil: A type of heating oil that is a blend of petroleum-based heating oil and fuels derived from plant sources (such as soybeans, corn, and wood by-products). Biodiesel and ethanol are also types of biofuel. Bioheat, though often used interchangeably with the term biofuel, is a brand name trademarked by the National Biodiesel Board. Bioheat is the most popular biofuel heating oil in the United States. Advantages of biofuel heating oil are that it is partially made from renewable resources, it can be produced domestically, and it releases less carbon than 100-percent-petroleum heating oil. Although many heating oil customers have the option to purchase oil blends consisting of petroleum and biofuel, obtaining one hundred percent biofuel is difficult because of a lack of large-scale production.
Budget Plan: A type of payment option for heating oil consumers, budget plans spread the cost of heating oil payments out over many months at a locked-in or variable rate. Budget plans allow for heating oil users to pay one flat rate every month of the year, as opposed to paying for heating oil deliveries as they are made in during the fall and winter.
Cash on Delivery (COD) Heating Oil: A type of pay-as-you-go service, COD heating oil allows the consumer to buy home heating oil from distributors without making long-term commitments or entering into a contract. Usually consumers must be home at the time of delivery and must pay the day of service with either cash or credit. COD heating oil is often provided at a discount because retailers are not obligated to perform maintenance on home heating systems or make regularly scheduled deliveries.
Contango: A situation in which the future price of a commodity is higher than the commodity’s “spot” or current price.
Rhode Island Begins Rebate Program for Energy-Efficient Appliances | HeatingOil.com says: says:
[...] that meet the federal ENERGY STAR standards. Residents who purchase an oil or gas boiler with an Annual Fuel Utilization Efficiency (AFUE) of 85 percent or greater can receive a $500 rebate, the largest rebate offered. Rhode Islanders who [...]