Were looking to secure a contract with a Non-Utility Generator. They are open to fuel adjustments for off road diesel as the cost is very, very unstable. This is a very good company to work for, they treat you right and never miss a payment for services rendered. Is there a guide, or rule of thumb for raising and lowering for fuel. Say it rises x-amount of cents...at what point do you ask for a rate increase to match? Tony
Tony One of our customers get the price from OPIS (Oil Price Information Services) each week, and they base the contract on the current price of fuel, and give us a range, say +/- $0.25 They get the OPIS report weekly during the contract, and if fuel is out of the +/- $0.25 range, then they compensate us for the difference based on the gallons used. We are responsible for the first $0.25 though. This will protect you from a major disruption in price, but you eat the minor ones. You can negotiate the rate at which it kicks in. Using OPIS levels the field for both you and the customer, as it reflects the price the distributer pays at the terminal.