Energy price protection system and method

• US 20090198621A1
• Filed: 02/04/2009
• Published: 08/06/2009
• Est. Priority Date: 02/04/2008
• Status: Abandoned Application

• Current Assignee: Energy Price Protector LLC
• Original Assignee: Energy Price Protector LLC
• Inventors: Reichelderfer, Thomas S., Pimputkar, Sudheer, Schneier, Lance W.
• Application Number:
  US12/322,577
• Publication Number:
  US 20090198621A1
• Time in Patent Office: Days
• US Class Current: 705/80
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/06 Energy or water supply
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

Protection is provided against increases in the price of energy. As an example, the protection may be provided for an agreed in advance quantity of energy and/or for an agreed in advance duration.

Claims

1. A system for providing a plurality of users participating in an energy price protection plan with e-commerce and transaction capabilities, said system comprising:

a processor; and

a memory operatively connected to said processor, wherein said processor is operative with control instructions in said memory to perform the steps of;

receiving an account identifier associated with each user;

receiving, from each user, an anticipated geographic area associated with energy purchases;

storing said received anticipated geographic areas in association with each respective account identifier in said memory;

providing each user the calculated payment, wherein each respective payment is calculated by said processor based at least in part upon one of a first program price associated with each user and a second program price associated with each user as well as upon said market reference price, wherein the first program price for each user is independent of the first program price for each other user and the second program price for each user is independent of the second program price for each other user; and

wherein each payment for each user is calculated by said processor based at least in part upon the first program price for that user when the geographic location of the automotive fuel purchase corresponds to said anticipated geographic area associated with energy purchases for that user and each payment for each user is calculated by said processor based at least in part upon the second program price for that user when the geographic location of the energy purchase does not correspond to said anticipated geographic area associated with energy purchases for that user.

2. The system of claim 1, wherein at least one of said first program price for each user and said second program price for each user is a capped price.

3. The system of claim 1, wherein at least one of said first program price for each user and said second program price for each user is based at least in part upon an effective time period, and a quantity, a grade and a brand of said energy;

and said purchase information includes a date, a quantity, a grade and a brand of said energy.

4. The system of claim 1, wherein at least one of said first program price for each user and said second program price for each user is exclusive of taxes.

5. The system of claim 1, wherein said payment due to each of said users is provided as a credit to an account identified by a respective account identifier.

6. A method of providing quantitative value to a consumer in a consumer transaction, comprising providing energy price protection for a quantity of energy purchased over a time period, including providing payment to the consumer based on the difference between a first value of an established energy price and a second value related to the actual price of the energy quantity if the second value exceeds the first value.

7. The method of claim 6, wherein the second value is an average market reference price for the energy during the time period.

8. A method of providing energy price protection comprises guaranteeing each consumer that subscribes to an energy price protection monitoring system that the effective cost per unit of energy over a given time period will not exceed a predetermined price.

9. The method of claim 8, said guaranteeing comprising acquiring financial instruments to protect against rises in the cost per unit of energy over a given time period that is the same or different from the first mentioned given time period.

10. The method of claim 8, said guaranteeing comprising providing energy price protection to compensate for retail price increases above levels at the time of selling to the subscribing consumer.

11. A method of providing vehicle fuel-related price protection, comprising acquiring financial instruments to acquire a fuel product at future times, based at least in part on the cost to acquire such financial instruments, on the anticipated value of such financial instruments during a first prescribed time frame, and on the anticipated average price of vehicle fuel during a second time frame, determining a commercially valuable price at which to sell fuel price protection for a quantity of fuel to provide payment to a consumer, customer or their designee based on the difference between a first value of an established fuel price and a second value related to the actual price of the fuel quantity if the second value exceeds the first value.

12. The method of claim 11, wherein the actual value is average value.

13. The method of claim 11, wherein such financial instruments are purchase options.

14. The method of claim 11, wherein said acquiring financial instruments comprises acquiring options pertaining to at least one or more of gasoline, heating oil or other energy type.

15. The method of claim 11, said determining comprising investigating at least one of the factors of crude oil market supply, crude oil demand or crude oil price;

investigating at least one of the factors of gasoline supply, gasoline demand or gasoline price, and determine hedges for compensating for fluctuations in the investigated factors.

16. The method of claim 11, said selling comprising selling fuel price protection to compensate for retail price increases above levels at the time of selling to the consumer, customer or designee.

17. The method of claim 11, said acquiring comprising acquiring financial instruments comprises acquiring at least one or more of options, futures or combinations.

18. The method of claim 17, comprising providing to a recipient of such price protection for a prescribed quantity of fuel a payment based at least in part on the average price of fuel over a prescribed time period, a guaranteed fuel price, and the prescribed quantity of fuel, provided that the average price of fuel over the prescribed time period exceeds the guaranteed fuel price during that prescribed time period without regard to whether the prescribed quantity of fuel was used by the recipient.

19. The method of claim 18, wherein the providing fuel price protection includes basing the fuel price protection on a wholesale price component of the fuel and/or a retail price component of the fuel.

20. The method of claim 19, wherein basing the fuel price protection on the wholesale price component includes basing the wholesale price component on prices set by an independent entity.

21. The method of claim 19, wherein basing the fuel price protection on the retail price component includes basing the retail price component on the fuel wholesale price component and market price for fuel.

22. The method of claim 18, wherein providing fuel price protection includes using at least one of fixed price protection, price increase protection, or buy down of price.

23. The method of claim 22, wherein using buy down of price includes implementing the buy down of price via a swap agreement and a put option.

24. The method of claim 22, wherein using price increase protection includes implementing a call option or swap.

25. The method of claim 18, wherein providing payment includes determining if the consumer meets at least one predetermined criteria and denying payment if the criteria is not satisfied.