A.W. PETERS, INC.

  2007-2008     BUDGET PROPOSAL

PHEW!  We all survived another year!  As we prepare your budget for this next heating season, allow us a moment to thank you for the privilege of heating your home or office.

We are grateful for the trust you place in us.

Last year, your budget worked well for you.  Prices stayed at the low end of the collar for much of the year, enabling us to lower most budget payments, and many of you were able to skip some.  Budgets even did better than prepaid contracts.  Energy markets continue to be volatile but we remain committed to providing you with the best service and the fairest contract we can secure on your behalf.  To continue to offer you price-protection, we will only use the safest tools available to us.

The price collars for 2007-2008 are lower than last year!!      

            The lowest net price per gallon of #2 fuel is 2.379 and the highest is 2.779          

            The lowest net price per gallon of #3 fuel is 2.429 and the highest is 2.829          

            The lowest net price per gallon of kerosene 2.799 and the highest is 3.099

            NOTE: These are net prices!

Deliveries will be posted to your account at a rate of .10 per gallon under the posted price.  Senior citizens (age 62 or over) will receive an additional .04 per gallon discount. We will continue to pay monthly dividends at an APR of 3% on credit balances as long as your budget is current.  Budgets begin in July and run through April, unless other arrangements have been made.  All budget payments are due by the 10th of each month.  Price-protection runs through April 30, 2008 as long as your budget is current.  Price-protection and automatic deliveries may be suspended on any overdue account.  Significant trip charges may be applied to overdue accounts which require off day or overtime deliveries.

We realize many of you continue to struggle with high energy costs.  We will continue to do everything we can to protect you in a safe and secure manner. Go to www.awpeters.com/payment.asp and you can now pay your bill on a secure site! Should you have questions, please call us at 924-3388 or 924-3953 or email us at wendy@awpeters.com or awpeters@monad.net.

          Thank you!

           Wendy A. Peters