L&R Committee 2008 Final Report

Appendix A Automatic Temperature Compensation Presentation and Letters

Appendix A

Automatic Temperature Compensation
Presentation and Letters

Page


NATSO Statement for the Record to the Laws and Regulations Committee....................................................A3
NATSO Slide Presentation: Fuel Transactions from Rack to Retail .............................................................A4
Letters Submitted to the NCWM Conference Concerning Automatic Temperature Compensation ..............A12



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Statement for the Record
Annual Meeting of the National Conference on Weights and Measures

Laws and Regulations Committee
J uly 14, 2008, Burlington, Vermont.


Madame Chairman and Members of the NCWM:

My name is Holly Alfano, representing NATSO, a trade association representing more than 1000 truck stops and
travel plazas. Thank you for the opportunity to speak today.

I thank you for the many hours you have spent deliberating on the issue of ATC, and I encourage you to continue
your careful deliberations. Consumers here in the United States are fortunateeven with the recent run up in fuel
prices to enjoy some of the lowest fuel prices among all of the industrialized nations. Consumers have an
expectation of low prices, and any actions that are taken which affect fuel prices will be studied by them with a
magnifying glass.

I have a presentation that contains a lot of numbers that explain how fuel is priced both at wholesale and retailand
I will be happy to run through it with anyone here who has questions. But retail fuel pricing is not rocket science; it
is simple accounting. A retailer calculates the costs of a load of fuel and passes them on, factoring in the
competitive marketplace and hopefully a margin that will allow him to stay in business. As you will see from
reviewing the scenarios in the presentation, hot days or cold days make no difference. Costs are factored into
pricing.

The recent run-up in fuel prices has seriously impacted independent fuel retailers. Their credit lines are maxed out,
with rapidly escalating fuel prices seriously straining their cash flow. Credit card fees and other costs of doing
business are cutting into margins like never beforeand many retailers are on the verge of bankruptcy. The
adoption of an expensive new technology such as ATCthat has no proven consumer benefitwill simply
eliminate some of the retailers from the marketplace. They will not be able to afford to upgrade their equipment in
the current business environment of shrinking margins and declining volume.

Please carefully evaluate the proposals for implementation of ATC. A continued examination of the facts will
reveal that this ATC has no merit or consumer benefit. Thank you for your careful deliberation on this issue.

Holly Alfano
Vice President, Government Affairs
NATSO, Inc.
1737 King Street, Suite 200
Alexandria, VA 22314
(703) 739-8501
halfano@natso.com


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