PPA Webinar Series #54: Rack Supply Contracts – What You Need to Know

Supply contracts are becoming more common in the industry. This webinar will be a great refresher for seasoned buyers and a helpful foundation for people within your organization who have less experience with the fuel markets. The presentation will cover the following strategies to assist your team in fuel purchasing decisions. • Ratability – what it is, and how to use it to your advantage in negotiating contracts • Multiple Racks – if you include multiple racks in your contract, be aware of restrictions • Over / Under Lifting – what the penalties can be • The Actual Contract – what MUST be in the agreement • Contract Price Points – especially important if your members buy on a index (spot price) basis • Sample Formulas – Low 2, Low 3, Strips