Push for natural gas in CT

NEW HAVEN, Conn. (WTNH) -- Home heating oil dealers across Connecticut say the state's big push to help people convert to natural gas is bad for business.

They say no one knows what the price of gas versus oil will be in the future and that the state should just stay out of it.

The home heating oil dealers across the state of Connecticut say they are fighting for their livelihood.

"They're trying to target about 40 percent of our business," said Jennifer Tracey-Carlo, Tracey Energy Services, "so I would say a good 25 to 30 percent of the companies could go out of business."

The 'they' that Carlo is talking about is the state government and the Governor's energy plan that will make it easier for thousands of home owners to hook up to existing natural gas pipelines because right now gas is much cheaper.

"It's undeniable what the rates are right now and there's a significant savings to be had, based on current prices," said Governor Dannel Malloy.

The wholesale price of home heating oil at the New Haven terminal Monday was $3.06 a gallon, with mark-up that puts the consumer price up in the $3.60's this week, much higher than natural gas.

"The real problem with the plan is its foundation is based on the flawed premise that the current difference between oil and natural gas is going to exist for the next 25 years," said Gene Guilford, Independent CT Petroleum Assoc.

There are 600 home heating oil dealers in Connecticut, employing about 13,000 people delivering oil and servicing home heating systems. They say they don't mind competing with the gas companies.

"But when the state believes it needs to weigh in to help it is when the state goes from being a regulator of a utility to being its cheerleader and we have a problem with that," Guilford said.

"The overall goal is; if people opt to heat and use gas they should have that option and that we should get out of the way," Malloy said, "but we are not talking about requiring anyone to hook up."

There's a public hearing on this tonight at the hall of records in New Haven, and the heating oil dealers are planning to make their points loud and clear.