Rutland Town Selects Johnson Energy for Fuel Oil Contract with Capped Rate

August 13, 2025 | Town of Rutland, Rutland County, Vermont


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Rutland Town Selects Johnson Energy for Fuel Oil Contract with Capped Rate
In the recent Selectboard meeting held on August 12, 2025, in Rutland, Vermont, town officials discussed a significant contract for fuel oil supply, which is crucial for managing the town's energy costs. The board evaluated a proposal from Johnson Energy to provide Number 2 fuel oil to all town properties at a price of 40 cents per gallon above Johnson Energy's cost on the day of delivery, with a maximum cap rate of $2.07 per gallon for the contract period from September 1 through August 31.

The discussions highlighted the competitive landscape of fuel pricing, comparing Johnson Energy's offer with those from other suppliers, including Champlain Oil and Irving. While Champlain Oil offered a fixed price of $2.68 per gallon, Johnson Energy's capped pricing structure was seen as advantageous, allowing for potential savings if market prices decrease. The board noted that Johnson Energy's pricing could fluctuate but would not exceed the capped rate, providing a level of cost certainty for the town.

The Selectboard members expressed confidence in continuing their relationship with Johnson Energy, citing their history of reliable service and the benefits of the capped pricing model. The board ultimately moved to accept the contract with Johnson Energy, emphasizing the importance of securing a stable fuel supply for the upcoming winter months.

This decision reflects the town's proactive approach to managing energy costs amid fluctuating market conditions, ensuring that Rutland can maintain its operations efficiently while safeguarding taxpayer interests. The Selectboard's commitment to evaluating competitive bids demonstrates a responsible governance strategy aimed at optimizing municipal expenditures.

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