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    Office Of The Mayor

    New Haven brokers statewide deal for discounted oil

    (2/6/2006) -MEDIA ADVISORY-

    NEW HAVEN BROKERS STATEWIDE DEAL FOR DISCOUNTED CITGO OIL – 4.8 MILLION GALLONS HEADING TO MORE THAN 24,000 FAMILIES

    New Haven: Mayor John DeStefano’s office, in conjunction with Citizens Energy Corporation, has secured 4.8 million gallons of oil through the Venezuela-CITGO Heating Oil Program for recipients of the Low Income Home Energy Assistance Program (LIHEAP) and the Contingency Heating Assistance Program (CHAP) in Connecticut.

    The program will offer eligible households a one-time delivery of oil at a discounted rate of 40% per gallon. In addition, social service agencies (i.e. homeless shelters) within the State will be eligible to receive discounted oil under this program.

    “Low and middle-wage workers are finding it harder than ever to heat their homes and make ends meet. This program is a fast and effective way to help them make it through the winter,” said Mayor DeStefano, Jr. “In New Haven, and across Connecticut, we have thousands of families who are struggling and I’m thrilled this program will enable each of them to save a few hundred dollars.”

    In order to disseminate information and administer the CITGO Home Heating Oil Program to eligible households, Citizens Energy Corporation would like to work with the network of 12 Community Action Agencies (CAP), which administer the CT Energy Assistance Program. The CAP agencies in turn, will receive ad administrative fee of $3.75 per household to assist in this effort.

    There are approximately 4,000 eligible families in Greater New Haven and 24,000 across the State. Each household will be entitled to receive a one-time delivery of up to 200 gallons at a $40% discount (The average price of oil about $2.45, they would pay $1.47 for the oil, a .98 cent discount, and pay a total of $294.00 instead of $490.00, a savings of $196.00) In addition, institutions such as homeless shelters and other social service agencies may avail themselves to this program (their allotment of a gallons is much higher).

    The program is currently being offered – or has been approved - in Massachusetts, Vermont, Maine, Rhode Island, Pennsylvania, New York, and now Connecticut. A contract between CITGO, Citizens Energy Corporation, and local service providers is expected to be signed within the next week.

    HOW THE PROGRAM WORKS

    Citizens buys the oil from CITGO, they in turn contract with local delivery providers to bring the oil to the LIHEAP/CHAP homeowner/renter or agency. All users of LIHEAP/CHAP will be informed of the program via letter which will state whom to call (an 800 number will be announced this week). The homeowner then calls the local oil delivery company and the oil provider, upon delivery or through billing, will be paid by the individual who is paying a 40% discounted rate. The oil provider then bills Citizens Energy Corporation, or other partner agency, depending how the program is set up, for the remaining cost.

    BACKGROUND HISTORY

    Citizens Energy Corporation is a non-profit company whose commercial subsidiaries support a wide array of social and charitable programs in the United States and abroad. Founded in Boston, MA in 1979 by Joseph P. Kennedy II, past commercial activities include crude oil trading, oil exploration and production, electric power and natural gas marketing, mail-order service pharmaceuticals, and an environmental business consulting.

    CITGO Petroleum Corporation is the third largest refiner in the United States. The company is a wholly-owned U.S. subsidiary of PDV America, Inc., an indirect, wholly owned subsidiary of Petróleos de Venezuela, S.A., the national oil company of the Bolivarian Republic of Venezuela. Venezuela is one of the major foreign suppliers of both crude oil and petroleum products, including gasoline, to the United States. Currently, Venezuela accounts for approximately 15 percent of all U.S. oil imports and is the second-largest foreign supplier of refined petroleum products.

    [END]



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