Dear Valued Customer:
The current energy market, as we are well aware, remains volatile and unpredictable. Kerivan-Lane over the past five years has provided our customers an open enrollment, online fixed/capped oil price program. This open enrollment program allows you to choose when to fix or cap your price. However, you may only fix or cap your price once for the contract period. The price often changes daily.
Please remember that volatile markets mean greater risk for the customer, for Kerivan-Lane and for our suppliers. Therefore, credit terms reflect that risk and are very strict. In many instances to remain on market rate pricing is beneficial. There is no guarantee that by fixing or capping your price you will benefit financially.
Market price: The daily price for customers that do not have a fixed or capped price. The price changes based on daily market conditions, not the futures market. To receive the market rate price you will need to either call the office or place a request via email.
Fixed price: The price we post on our web site based on the futures market. Because we allow open enrollment, when you visit the web site that price will change based on the futures market.
Capped price: The price we post on our web site based on the futures market plus the cost of downside protection. The more volatile the market, the more expensive downside protection becomes.
The fixed and capped price programs are available on our web site to Kerivan-Lane customers only. To receive access you need a password, which is available by e-mail request.
Thank you for your business and loyalty. It is our pleasure to serve you.
Sincerely,
Christopher Lane
General Manager
