Hedging Against Commuter Angst

Today’s guest post is authored by Chris Connolly, Director of Client Services for Convergys Employee Care.  Chris is a long-time advocate of alternative work schedules (and an extremely bright guy).  If you have questions or comments, Chris can be reached directly at chris.connolly@convergys.com.  Take it away Chris!

Filling my tank near the Kennedy Center in Washington, DC this past weekend, I waited nervously as the $4.25/gallon offering approached a $100 total.  I never thought I would worry about the credit limit on my Exxon Card, and I swear that just last week I could count “one-Mississippi” while the digits on the meter clicked off $1 increments…I fear those days are gone.

Having a little time to contemplate this situation, I began wondering when gas stations might start offering a fourth payment option at the pump: Cash, Debit, Credit or Hedge (i.e, pre-purchase X gallons of premium for $3.25 a gallon and draw down from this purchase over the next year).  Thinking I might have stumbled onto a million dollar idea, I  went home and performed the obligatory Google search only to find out that others had beaten me to the concept:  

• Chrysler is offering a program called “Refuel America” which locks in the price of unleaded at $2.99 for three years if you purchase a “qualifying (read slow-moving-gas-guzzler) vehicle”.   
• Also check out the Gasoline Price Protection Program (G3P) concept at the WTLTrading blog.

But back to the issue you raised Mark.  I am hopeful that employees and employers can discover opportunity in the energy and economic challenges that we face today.   The impact of fuel prices on the average commuter may help produce the momentum to bust through the paradigm that we’ve been stuck in for over 40 years.  Rather than waiting for the oil companies to discover new supplies, build more refining capacity, or offer “incentives” to pre-purchase their highly profitable commodity, employees might start asking their employers for the option of an alternative work environment (aka work-at-home and/or telecommuting).  If you want to begin developing a business case for reducing your commuting expenses,  check out the calculators at the following sites:

• Arlington County VA’s “Car-Free Diet” calculator
• Commute Solution’s “True Cost of Driving” calculator

Both tools demonstrate how an average commuter can save several thousand dollars per year by working at home just one day per week.  Many states (Virginia being one) offer significant incentives to businesses for developing and deploying telework/alternative work site solutions.  The reduced demand on highways and other municipal infrastructure helps subsidize these government incentives.  The benefits to employees, taxpayers, employers and the environment could be significant if we begin to approach our daily commute less as a requirement and more as a choice.  Let’s explore the alternatives.