Biodiesel saves money

If you recall, the town DPW began using biodiesel back in January. Among the reasons I advocated for that change were that it would help us:

1) reduce our dependence on foreign oil,
2) protect the environment (drop emissions),
3) improve our health (via fewer emissions),
4) curb sprawl (somewhere in the US, if not in CT), and
5) create jobs

But with rising fuel costs, the switch is now paying off with real $aving$.

Here's the explanation:

Earlier this week, I called the people in charge of fuel at the Conn DOT. They told me that they were still buying/transferring/selling biodiesel to municipal governments at the same contractual price that they used back in January: $2.04/gallon. And while the DPW was paying about a $0.05/gallon premium back in January (because petrodiesel would have cost $1.99/gallon), most other municipalities are now (as of July 5) paying $2.36/gallon. So Cheshire is now saving $0.32/gallon!

Of course, we need to keep in mind that the price of fuel fluctuates. And with the DPW buying off the state contract... it's similar to buying your home heating fuel in the summer... if prices spike, you can make out like a bandit. But if prices drop... you can lose out. Although... since we're just piggybacking on the state contract... I'm pretty sure that towns only gets the upside to this without any downside risk. It's the state that could be in a pickle if things go awry... but who's expecting the price of oil to drop? Heck... if the US pulls out of Iraq... I imagine that the related uncertainty will only work to increase the price of oil.

Anyway... just wanted to let you know about this.

Tim White
Town Council, Energy Commission liaison