Price soars for scarce pellets
Pellet stoves feel the chill; there just isn't enough fuel in the area By Kristina Wells
Times Herald-Record
Dingmans Ferry, Pa. — Roxane Sanford just wants to turn the heat on in her home. But that's not as easy as it sounds for this pellet stove owner.
Sanford has spent the past two months putting her name on waiting lists for pellet fuel — some lists are 500 names long — and calling chain stores from New Jersey to Scranton, Pa., only to be told they have no idea when the next shipment will arrive and to "call back tomorrow."
Sanford is appalled by the lack of pellet fuel and even more by the hefty price tag, up from the price, with delivery, of $199 a ton two winters ago to $330 a ton this year. And her stockpile this year isn't even her brand of choice.
"If I knew then what I know now," Sanford said. "I've already committed to my stove, so I'm going to commit to finding pellets. But with the price increase and the supply not meeting demand, I would stay away until they get their act together. I think people would regret it if they bought (stoves) this year."
Last winter, wood pellet producers failed to anticipate the rising demand, as homeowners shunned traditional heating methods because of soaring fuel oil and gas prices. On average, homeowners burn a 40-pound bag of pellets a day — there are 50 bags in a ton — and use up to 3 tons in the winter, experts say. A shortage ensued as customers clamored for pellets to make it through the winter.
That's not the case this year. Industry experts say pellet production is up considerably, but the fuel has been slow in making its way to retailers, and prices have risen. Home Depot in Middletown didn't have one pellet bag in stock and didn't know when it would receive a shipment.
Several Lowe's Home Improvement stores in Pike, Orange and Dutchess counties haven't received a shipment of wood pellets in months, said Ken Wyskida, operations manager at the Matamoras, Pa., store.
The going rate per ton at Lowe's is $263 a ton, up $40 from the same time last year. And as the season wears on, that price will rise, too.
"It's so hard to get them, even this time of year," Wyskida said, noting that any pellet fuel that the store does get flies off the shelves in as little as two days. "We're hoping that it gets better."
It might not.
Jim Rohner, owner of Neversink Lumber in Port Jervis, said he's not inclined to restock the shelves with pellets any time soon. Last year, the going price per ton was $285. In July and August this year, he sold out his stock at $344 a ton.
A replenishment shipment, if he ordered one, would see customers paying almost $400 a ton. Rohner said he's barely making a profit on that, either.
"Customers told us they would think twice about paying that price," Rohner said. "And quite honestly, I don't blame them."
Sanford admits that she's contemplated switching back to conventional fuel, although she fears she could receive an $800 monthly electric bill like she did three years ago, before she converted to the pellet stove. But she also fears that if this winter is brutal, the 6 tons of pellet fuel she just paid $1,995 for might not last.
"It's always a concern, every year. If I run out, I run out. There is no more," she said.
Pellet power
An energy crisis in the 1970s led to the birth of the wood pellet. The pellets, which resemble rabbit food, are made from wood waste, the scraps from saw and paper mills and furniture production. Pellets can be used as a substitute for wood stoves and fossil fuels, including propane and natural gas. Pellet fuel is clean burning, renewable and allergy-free. More than 600,000 homes in the United States are using pellets in stoves and furnaces. For more information, log on to www.pelletheat.org
Source: Pellet Fuel Institute recordonline.com |
