SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

    (Mark One)

          [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended  September 30, 2003

                                       OR

          [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934

For the transition period from                   to
                                ----------------    ----------------

                        Commission file number: 333-59109

                                ABLE ENERGY, INC.
             (Exact name of registrant as specified in its charter)

          DELAWARE                                            22-3520840
(State or other jurisdiction of                            (I.R.S. employer
incorporation or organization)                             identification No.)

        198 GREEN POND ROAD
            ROCKAWAY, NJ                                        07866
(Address of principal executive offices)                      (Zip code)

Registrant's telephone number, including area code: (973) 625-1012


                                 NOT APPLICABLE
      (Former name, former address and former fiscal year, if changed since
                                  last report)


         Indicate by check X whether registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes [X]  No [ ]

         As of November 12, 2003, 2,013,250 shares, $.001 Par value per share,
of Able Energy, Inc. were issued and outstanding.



<PAGE>


                                TABLE OF CONTENTS



                                                                            PAGE
                                                                            ----
PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS (UNAUDITED)

         Consolidated Balance Sheets as of June 30, 2003 and
            September 30, 2003                                             3 - 4

         Consolidated Statements of Income for the three
            months ended September 30, 2003 and September 30, 2002             5

         Consolidated Statement of Stockholders' Equity three months
            ended September 30, 2003                                           6

         Consolidated Statements of Cash Flows for the three months
            ended September 30, 2003 and 2002                                  7

         Notes to Unaudited Financial Statements                          8 - 29


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET


                                     ASSETS

<TABLE>
<CAPTION>
                                                                         SEPTEMBER 30,      JUNE 30,
                                                                             2003             2003
                                                                         (UNAUDITED)       (AUDITED)
                                                                         -----------     -----------
<S>                                                                      <C>             <C>
CURRENT ASSETS:
    Cash                                                                 $   442,770     $   400,033
    Accounts Receivable (Less Allowance for Doubtful
       Accounts of  $212,298 (2003) and $242,358 (2002)                    2,510,256       2,661,808
    Inventory                                                              1,085,019         789,422
    Notes Receivable - Current Portion                                        60,322          57,577
    Miscellaneous Receivables                                                 44,552          70,503
    Prepaid Expenses                                                         631,589         395,982
    Insurance Claim Receivable                                               188,592         349,526
    Deferred Costs - Insurance Claims                                        834,553         703,675
    Prepaid Expense - Income Taxes                                             2,063           2,063
    Deferred Income Tax                                                       59,240          73,777
                                                                         -----------     -----------
        TOTAL CURRENT ASSETS                                               5,858,956       5,504,366
                                                                         -----------     -----------

PROPERTY AND EQUIPMENT:
    Land                                                                     451,925         451,925
    Buildings                                                                946,046         946,046
    Trucks                                                                 3,209,981       3,125,453
    Fuel Tanks                                                             1,493,401       1,455,501
    Machinery and Equipment                                                  781,036         769,817
    Leasehold Improvements                                                   612,335         597,759
    Cylinders                                                                755,496         755,496
    Office Furniture and Equipment                                           200,640         200,640
    Website Development Costs                                              2,281,075       2,274,575
                                                                         -----------     -----------
                                                                          10,731,935      10,577,212
    Less: Accumulated Depreciation and Amortization                        4,606,048       4,331,055
                                                                         -----------     -----------
        NET PROPERTY AND EQUIPMENT                                         6,125,887       6,246,157
                                                                         -----------     -----------

OTHER ASSETS:
    Deferred Income Taxes                                                     45,091          45,091
    Deposits                                                                 129,220         165,541
    Notes Receivable - Less Current Portion                                  175,048         177,793
    Customer List, Less Accumulated Amortization of  ($188,122) 2003
       and 2002                                                              422,728         422,728
    Covenant Not to Compete, Less Accumulated Amortization of
       $81,667 (2003) and $61,667 (2002)                                      18,333          23,333
    Development Costs - Franchising                                           25,275          27,573
                                                                         -----------     -----------
         TOTAL OTHER ASSETS                                                  815,695         862,059
                                                                         -----------     -----------

        TOTAL ASSETS                                                     $12,800,538     $12,612,582
                                                                         ===========     ===========
</TABLE>

                             See Accompanying Notes

                                        3


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEET (CONT'D)


                       LIABILITIES & STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                                       SEPTEMBER 30,        JUNE 30,
                                                                           2003               2003
                                                                       (UNAUDITED)         (AUDITED)
                                                                       ------------      ------------
<S>                                                                    <C>               <C>
CURRENT LIABILITIES:
    Accounts Payable                                                   $  1,446,473      $  1,420,911
    Note Payable - Other                                                    335,000           335,000
    Current Portion of Long-Term Debt                                       330,108         1,238,982
    Accrued Expenses                                                        995,588           735,370
    Accrued Taxes                                                            80,036            98,612
    Customer Pre-Purchase Payments                                        1,854,191           936,680
    Customer Credit Balances                                                799,825           416,644
    Escrow Deposits                                                           5,000             5,000
    Note Payable - Officer                                                  320,188           321,630
                                                                       ------------      ------------
        TOTAL CURRENT LIABILITIES                                         6,166,409         5,508,829

DEFERRED INCOME                                                              79,679            79,679
DEFERRED INCOME TAXES                                                        73,538            70,310
SHORT-TERM DEBT REFINANCED                                                       --         3,170,000
LONG-TERM DEBT: less current portion                                      4,504,910           296,472
                                                                       ------------      ------------
        TOTAL LIABILITIES                                                10,824,536         9,125,290
                                                                       ------------      ------------

STOCKHOLDERS' EQUITY:
    Preferred Stock
    Authorized 10,000,000 Shares Par Value $.001 per share
     Issued - None
    Common Stock
    Authorized 10,000,000 Par Value $.001 per share Issued
      and Outstanding Shares 2,013,250 (2003) and 2,007,250 (2002)            2,014             2,014
    Paid in Surplus                                                       5,711,224         5,711,224
    Retained Earnings (Deficit)                                          (3,737,236)       (2,225,946)
                                                                       ------------      ------------
        TOTAL STOCKHOLDERS' EQUITY                                        1,976,002         3,487,292
                                                                       ------------      ------------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     $ 12,800,538      $ 12,612,582
                                                                       ============      ============
</TABLE>




                             See Accompanying Notes

                                        4


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                            THREE MONTHS SEPTEMBER 30,
                                                          ----------------------------
                                                              2003             2002
                                                          -----------      -----------
<S>                                                       <C>              <C>
NET SALES                                                 $ 6,850,212      $ 6,233,339

COST OF SALES                                               5,963,462        5,402,825
                                                          -----------      -----------
     GROSS PROFIT                                             886,750          830,514
                                                          -----------      -----------
EXPENSES
     Selling, General and Administrative Expenses           1,643,045        1,211,527
     Depreciation and Amortization Expense                    313,066          297,406
                                                          -----------      -----------
        Total Expenses                                      1,956,111        1,508,933
                                                          -----------      -----------
     LOSS FROM OPERATIONS                                  (1,069,361)        (678,419)
                                                          -----------      -----------
OTHER INCOME (EXPENSES):
     Interest and Other Income                                 28,471           32,835
     Interest Expense                                        (322,428)         (81,123)
     Legal Fees Relating to Other Expense                    (130,207)              --
                                                          -----------      -----------
        Total Other Income (Expense)                         (424,164)         (48,288)
                                                          -----------      -----------
     LOSS BEFORE PROVISION FOR INCOME TAXES                (1,493,525)        (726,707)

PROVISION FOR INCOME TAXES                                     17,765            3,120
                                                          -----------      -----------
     NET LOSS                                             $(1,511,290)     $  (729,827)
                                                          ===========      ===========
BASIC EARNINGS (LOSS) PER COMMON SHARE                    $      (.75)     $      (.36)
                                                          ===========      ===========
DILUTED EARNINGS (LOSS) PER COMMON SHARE                  $      (.75)     $      (.36)
                                                          ===========      ===========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING        2,013,250        2,003,831
                                                          ===========      ===========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING,
ASSUMING DILUTION                                           2,013,250        2,003,831
                                                          ===========      ===========
</TABLE>




                             See Accompanying Notes

                                        5


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

                      THREE MONTHS ENDED SEPTEMBER 30, 2003

                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                         COMMON STOCK
                                                        .001 PAR VALUE
                                                        --------------

                                                                  ADDITIONAL                         TOTAL
                                                                   PAID-IN        RETAINED       STOCKHOLDERS'
                                    SHARES          AMOUNT         SURPLUS        EARNINGS           EQUITY
                                 -----------     -----------     -----------     -----------     -------------
<S>                                <C>           <C>             <C>             <C>              <C>
Balance - July 1, 2003             2,013,250     $     2,014     $ 5,711,224     $(2,225,946)     $ 3,487,292

Net Loss                                                                          (1,511,290)      (1,511,290)
                                 -----------     -----------     -----------     -----------      -----------

Balance - September 30, 2003       2,013,250     $     2,014     $ 5,711,224     $(3,737,236)     $(1,976,002)
                                 ===========     ===========     ===========     ===========      ===========
</TABLE>





                             See Accompanying Notes

                                        6


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                 THREE MONTHS ENDED SEPTEMBER 30,
                                                                             UNAUDITED
                                                                 --------------------------------
                                                                      2003            2002
                                                                  -----------     -----------
<S>                                                               <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net  (Loss) - Continuing Operations                            $(1,511,290)    $  (729,827)
   Adjustments to Reconcile Net Income to Cash
   used by Operating Activities:
      Depreciation and Amortization                                   313,066         297,406
      Directors' Fees                                                      --          24,000
      (Increase) Decrease in:
         Accounts Receivable                                          151,552        (187,018)
         Inventory                                                   (295,597)        (19,767)
         Prepaid Expenses                                            (235,607)        (48,923)
         Deposits                                                      36,321              --
         Loss on Disposition of Assets                                     --             535
         Insurance Claim                                              160,934              --
         Deferred Costs Insurance Claims                             (130,878)             --
         Deferred Income Tax - Asset                                   14,537              --
      Increase (Decrease) in:
         Accounts Payable                                              25,562         332,622
         Accrued Expenses                                             241,642         (82,086)
         Customer Advance Payments                                  1,300,692         365,056
         Deferred Income Taxes                                          3,228           3,120
         Escrow Deposits                                                   --         (11,520)
                                                                  -----------     -----------
           NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES            74,162         (56,402)
                                                                  -----------     -----------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of Property and Equipment                                (252,858)        (96,214)
   Disposition of Property and Equipment                               73,860              --
   Website Development Costs                                           (6,500)             --
    Note and Other Receivables                                         25,951          45,002
    Deposits                                                               --         (36,750)
                                                                  -----------     -----------
          NET CASH (USED) PROVIDED  BY INVESTING ACTIVITIES          (159,547)        (87,962)
                                                                  -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES
   (Decrease) in Notes Payable - Bank                              (1,270,000)       (200,000)
   (Decrease) Increase in Notes Payable - Other                    (1,250,000         750,000
   Decrease in Long-Term Debt                                      (1,841,631)       (125,055)
   Increase in Long-Term Debt                                       4,491,195         140,875
   Officer's Loan - Reduction                                          (1,442)             --
                                                                  -----------     -----------
             NET CASH (USED) PROVIDED  BY FINANCING ACTIVITIES        128,122         565,820
                                                                  -----------     -----------

NET INCREASE (DECREASE) IN CASH                                        42,737         421,456
Cash - Beginning of Period                                            400,033         258,560
                                                                  -----------     -----------
Cash - End of Period                                              $   442,770     $   680,016
                                                                  ===========     ===========

The Company had Interest Cash Expenditures of:                    $   339,545     $    87,136
The Company had Tax Cash Expenditures of:                         $    12,750     $     4,971
</TABLE>


                             See Accompanying Notes

                                        7


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                  PRINCIPLES OF CONSOLIDATION
                  The consolidated financial statements include the accounts of
                  Able Energy, Inc. and its subsidiaries. The minority interest
                  of 1% in Able Propane, LLC is immaterial and has not been
                  shown separately. All material inter-company balances and
                  transactions were eliminated in consolidation.

                  MAJORITY OWNERSHIP
                  The Company is the majority owner, owning 70.6% of the issued
                  shares of a subsidiary, PriceEnergy.Com, Inc. in which their
                  capital investment is $25,000. The subsidiary has established
                  a E-Commerce Operating System for the sale of products through
                  a network of suppliers originally on the East Coast of the
                  United States. The Web Site became active in October 2000 (See
                  Notes 8 and 13)

                  MINORITY INTEREST
                  The minority interest in PriceEnergy.Com, Inc. is a deficit
                  and, in accordance with Accounting Research Bulletin No. 51,
                  subsidiary losses should not be charged against the minority
                  interest to the extent of reducing it to a negative amount. As
                  such, the losses have been charged against the Company, the
                  majority owner. The loss for three months ended September 30,
                  2003 is $161,905 (See Notes 8 and 13).

                  The consolidated interim financial statements included herein
                  have been prepared by the Company, without audit, pursuant to
                  the rules and regulations of the Securities and Exchange
                  Commission. Certain information and footnote disclosures
                  normally included in financial statements prepared in
                  accordance with generally accepted accounting principles have
                  been condensed or omitted pursuant to such rules and
                  regulations, although the Company believes that the
                  disclosures are adequate to make the information presented not
                  misleading.

                  These statements reflect all adjustments, consisting of normal
                  recurring adjustments which, in the opinion of management, are
                  necessary for fair presentation of the information contained
                  therein. It is suggested that these consolidated financial
                  statements be read in conjunction with the financial
                  statements and notes thereto included in the Company's annual
                  report for the year ended June 30, 2003. The Company follows
                  the same accounting policies in preparation of interim
                  reports.



                                        8


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

                  Results of operations for the interim periods are not
                  indicative of annual results.

                  NATURE OF OPERATIONS
                  Able Oil Company, Able Melbourne and Able Energy New York,
                  Inc. are full service oil companies that market and distribute
                  home heating oil, diesel fuel and kerosene to residential and
                  commercial customers operating in the northern New Jersey,
                  Melbourne, Florida, and Warrensburg, New York respectively.
                  Able Propane, installs propane tanks which it owns and sells
                  propane for heating and cooking, along with other residential
                  and commercial uses.

                  The Company's operations are subject to seasonal fluctuations
                  with a majority of the Company's business occurring in the
                  late fall and winter months. Approximately 70% of the
                  Company's revenues are earned and received from October
                  through March, and the overwhelming majority of such revenues
                  are derived from the sale of HVAC products and services and
                  home heating fuel. However, the seasonality of the Company's
                  business is offset, in part, by the increase in revenues from
                  the sale of diesel and gasoline fuels during the spring and
                  summer months due to the increased use of automobiles and
                  construction apparatus.

                  INVENTORIES
                  Inventories are valued at the lower of cost (first in, first
                  out method) or market.

                  PROPERTY AND EQUIPMENT
                  Property and equipment are stated at cost less accumulated
                  depreciation. Depreciation is provided by using the
                  straight-line method based upon the estimated useful lives of
                  the assets (5 to 40 years). Depreciation expense for the three
                  months ended September 30, 2003 and 2002 amounted to $191,716
                  and $180,083, respectively.

                  For income tax basis, depreciation is calculated by a
                  combination of the straight-line and modified accelerated cost
                  recovery systems established by the Tax Reform Act of 1986.

                  Expenditures for maintenance and repairs are charged to
                  expense as incurred whereas expenditures for renewals and
                  betterments are capitalized.

                  The cost and related accumulated depreciation of assets sold
                  or otherwise disposed of during the period are removed from
                  the accounts. Any gain or loss is reflected in the year of
                  disposal.



                                        9


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

                  E-COMMERCE OPERATING SYSTEM DEVELOPMENT COSTS
                  Costs of $2,281,075 incurred in the developmental stage and
                  thereafter for computer hardware and software have been
                  capitalized in accordance with accounting pronouncement
                  SOP98-1. The costs are included in Property and Equipment and
                  will be amortized on a straight line basis during the
                  estimated useful life, 5 years. Operations commenced in
                  October 2000. Amortization for the three months ended
                  September 30, 2003 and 2002 amounted to $114,053 and $110,025,
                  respectively.

                  INTANGIBLE ASSETS
                  Intangibles are stated at cost and amortized as follows:
                  Customer Lists of $571,000 related to the Connell's Fuel Oil
                  Company acquisition on October 28, 1996, by Able Oil Company
                  are being amortized over a straight-line period of 15 years.
                  The current period amortization also includes a customer list
                  of $39,850 and Covenant Not To Compete of $100,000 relating to
                  the acquisition from B & B Fuels on August 27, 1999, is being
                  amortized over a straight-line period of 10 and 5 years,
                  respectively. The amortization for the three months ended
                  September 30, 2003 and 2002 are $5,000 and $5,000,
                  respectively.

                  In July 2001, the Financial Accounting Standards Board
                  ("FASB") issued Statement of Financial Accounting Standards
                  No. 142, "Goodwill and Other Intangible Assets" ("SFAS 142").
                  SFAS 142 requires goodwill and other intangible assets to be
                  tested for impairment under certain circumstances, and written
                  off when impaired, rather than being amortized as previous
                  standards required, as such, effective July 1, 2001, the
                  Customer List will no longer be amortized for financial
                  statement purposes.

                  For income tax basis, the Customer Lists and the Covenant Not
                  To Compete are being amortized over a straight-line method of
                  15 years as per the Tax Reform Act of 1993.

                  USE OF ESTIMATES
                  The preparation of financial statements in conformity with
                  generally accepted accounting principles requires management
                  to make estimates and assumptions that affect the amounts
                  reported in the financial statements and accompanying notes.
                  Although these estimates are based on management's knowledge
                  of current events and actions it may undertake in the future,
                  they may ultimately differ from actual results.



                                       10


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

                  INCOME TAXES
                  Effective January 1, 1997, all the subsidiaries, which were
                  S-Corporations, terminated their S-Corporation elections. The
                  subsidiaries are filing a consolidated tax return with Able
                  Energy, Inc.

                  Effective January 1, 1997, the Company has elected to provide
                  for income taxes based on the provisions of Financial
                  Accounting Standards Board ("FASB") Statement of Financial
                  Accounting Standards ("SFAS") No. 109, "Accounting for Income
                  Taxes", which requires recognition of deferred tax assets and
                  liabilities for the expected future tax consequences of events
                  that have been included in the financial statements and tax
                  returns in different years. Under this method, deferred income
                  tax assets and liabilities are determined based on the
                  difference between the financial statement and tax bases of
                  assets and liabilities using enacted tax rates in effect for
                  the year in which the differences are expected to reverse.

                  CONCENTRATIONS OF CREDIT RISK
                  The Company performs on-going credit evaluations of its
                  customers' financial conditions and requires no collateral
                  from its customers.

                  Financial instruments which potentially subject the Company to
                  concentrations of credit risk consists of checking and savings
                  accounts with several financial institutions in excess of
                  insured limits. The excess above insured limits is
                  approximately $273,630. The Company does not anticipate
                  non-performance by the financial institutions.

                  CASH
                  For the purpose of the statement of cash flows, cash is
                  defined as balances held in corporate checking accounts and
                  money market accounts.

                  ADVERTISING EXPENSE
                  Advertising costs are expensed at the time the advertisement
                  appears in various publications and other media. The expense
                  was $228,562 and $133,788 for the three months ended September
                  30, 2003 and 2002, respectively.

                  FAIR VALUE OF FINANCIAL INSTRUMENTS
                  Carrying amounts of certain of the Company's financial
                  instruments, including cash and cash equivalents, accrued
                  compensation, and other accrued liabilities, approximate fair
                  value because of their short maturities.



                                       11


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

                  REVENUE RECOGNITION
                  Sales of fuel and heating equipment are recognized at the time
                  of delivery to the customer, and sales of equipment are
                  recognized at the time of installation. Revenue from repairs
                  and maintenance service is recognized upon completion of the
                  service. Payments received from customers for heating
                  equipment service contracts are deferred and amortized into
                  income over the term of the respective service contracts, on a
                  straight line basis, which generally do not exceed one year.

                  COMPUTATION OF NET INCOME (LOSS) PER SHARE
                  Basic net income (loss) per share is computed using the
                  weighted-average number of common shares outstanding during
                  the period. Diluted net income per share is computed using the
                  weighted-average number of common and dilutive potential
                  common shares outstanding during the period. Diluted net loss
                  per share is computed using the weighted- average number of
                  common shares and excludes dilutive potential common shares
                  outstanding, as their effect is anti-dilutive. Dilutive
                  potential common shares primarily consist of employee stock
                  options.

                  IMPAIRMENT OF LONG-LIVED ASSETS
                  Long-lived assets to be held and used are reviewed for
                  impairment whenever events or changes in circumstances
                  indicate that the carrying amount of such assets may not be
                  recoverable. Measurement of an impairment loss for long-lived
                  assets that management expects to hold and use is based on the
                  fair value of the asset. Long-lived assets to be disposed of
                  are reported at the lower of carrying amount or fair value
                  less costs to sell.

                  RECENT ACCOUNTING PRONOUNCEMENTS

                  FASB Interpretation No. 45 (FIN 45), "Guarantor's Accounting
                  and Disclosure Requirements for Guarantees, Including Indirect
                  Guarantees of Indebtedness of Others." In November 2002, the
                  FASB issued FIN 45 which requires a guarantor to recognize a
                  liability for the fair value of the obligation it assumes
                  under certain guarantees. Additionally, FIN 45 requires a
                  guarantor to disclose certain aspects of each guarantee, or
                  each group of similar guarantees, including the nature of the
                  guarantee, the maximum exposure under the guarantee, the
                  current carrying amount of any liability for the guarantee,
                  and any recourse provisions allowing the guarantor to recover
                  from third parties any amounts paid under the guarantee. The
                  disclosure provisions of FIN 45 are effective for financial
                  statements for both interim and annual periods ending after
                  December 15, 2002. The fair value measurement provisions of
                  FIN 45 are to be adopted as of July 1, 2003. The Company has
                  no obligation effected by this pronouncement.




                                       12

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

                  RECENT ACCOUNTING PRONOUNCEMENTS (CONT'D)

                  SFAS No. 148, "Accounting for Stock-Based Compensation -
                  Transition and Disclosure (an amendment of FASB Statement No.
                  123)." In December 2002, the FASB issued SFAS No. 148, which
                  amends SFAS No. 123, "Accounting for Stock-Based
                  Compensation," and provides alternative methods of transition
                  for a voluntary change to the fair value-based method of
                  accounting for stock-based employee compensation; SFAS No. 148
                  also amends the disclosure requirements of SFAS No. 123 and
                  APB Opinion No. 28, "Interim Financial Reporting," to require
                  prominent disclosures in both annual and interim financial
                  statements about the method of accounting for stock-based
                  employee compensation and the effect of the method used on
                  reported results. The provisions of SFAS No. 148 are effective
                  for financial statements for periods ending after December 15,
                  2002. The Company will adopt SFAS No. 148 effective July 1,
                  2003. It currently has no effect on the Company.

                  DEBT EXTINGUISHMENT

                  In April 2002, the FASB issued SFAS No. 145, "Rescission of
                  FASB Statements Nos. 4, 44 and 64, Amendment of FASB Statement
                  No. 13, and technical Corrections." Among other things, this
                  statement rescinds SFAS No. 4, "Reporting Gains and Losses
                  from Extinguishment of Debt" (SFAS No. 4), which required all
                  gains and losses from extinguishment of debt to be aggregated
                  and, if material, classified as an extraordinary item, net of
                  the related income tax effect. As a result, the criteria in
                  Accounting Principles Board Opinion No. 30, "reporting the
                  Results of Operations - Reporting the Effects of Disposal of a
                  Segment of a Business, and Extraordinary, Unusual and
                  Infrequently Occurring Events and Transactions," which
                  requires gains and losses on extinguishment of debts to be
                  classified as income or loss from continuing operations, will
                  now be applied. We adopted the provisions of this statement as
                  of July 1, 2002, as it was effective for years beginning after
                  June 15, 2002.

                  EXIT COSTS AND DISPOSAL ACTIVITIES

                  In June 2002, FASB issued SFAS No. 146, "Accounting for Costs
                  Associated with Exit or Disposal Activities" (SFAS NO. 146),
                  which addresses financial accounting and reporting for costs
                  associated with exit or disposal activities and nullifies
                  Emerging Issues Task Force No. 94-3, "Liability Recognition
                  for Certain Employee Termination Benefits and Other Costs to
                  Exit an Activity (including Certain Costs Incurred in a
                  Restructuring)" (EITF
                  9
                  The principal difference between SFAS No. 146 and EITF 94-3
                  relates to SFAS No. 146's requirements for recognition of a
                  liability for a cost associated with an exit or disposal
                  activity. SFAS No. 146 requires that a liability for a cost
                  associated with an exit or disposal activity be recognized
                  when the liability is incurred. Under EITF 94-3, a liability
                  for an exit cost as generally defined in EITF 94-3 was
                  recognized at the date of an entity's commitment to an exit
                  plan. We will adopt the new standard effective July 1, 2003.
                  This currently has no effect on the Company's operations.



                                       13


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

                  ASSET RETIREMENT OBLIGATIONS

                  Effective January 1, 2003, the Company has adopted SFAS No.
                  143, "Accounting for Asset Retirement Obligations" (SFAS No.
                  143). This statement provides the accounting for the cost of
                  legal obligations associated with the retirement of long-lived
                  assets. SFAS No. 143 requires that companies recognize the
                  fair value of a liability for asset retirement obligations in
                  the period in which the obligations are incurred and
                  capitalize that amount as part of the book value of the
                  long-lived asset. SFAS No. 143 also precludes companies from
                  accruing removal costs that exceed gross salvage in their
                  depreciation rates and accumulated depreciation balances if
                  there is no legal obligation to remove the long-lived assets.
                  The adoption had no current effect on the financial records.

NOTE 2          NOTES RECEIVABLE

         A.       The Company has a Receivable from Able Montgomery, Inc. and
                  Andrew W. Schmidt related to the sale of Able Montgomery, Inc.
                  to Schmidt, and truck financed by Able Energy, Inc. No
                  payments of principal or interest had been received for more
                  than one year. A new note was drawn dated June 15, 2000 for
                  $170,000, including the prior balance, plus accrued interest.
                  The Note bears interest at 9.5% per annum and payments
                  commence October 1, 2000. The payments will be monthly in
                  varying amount each year with a final payment of $55,981.07
                  due September 1, 2010. No payments were received in the year
                  ended December 31, 2000. In February 2001, two (2) payments
                  were received in the amount $2,691.66, interest only. In
                  September 2001, $15,124.97 was received covering payments from
                  December 2000 through October 2001, representing interest of
                  $14,804.13 and principal of $320.84. Payments were received in
                  November and December 2002, representing December 2001 and
                  January 2002, a total of $3,333.34; interest of $2,678.88, and
                  principal of $654.46.

                  The note is secured by a pledge and security agreement and
                  stock purchase agreement (Stock of Able Montgomery, Inc.),
                  dated December 31, 1998, and the assets of Andrew W. Schmidt
                  with the note dated June 15, 2000. The income on the sale of
                  the company in December 1998 and the accrued interest on the
                  drawing of the new note are shown as deferred income in the
                  amount of $79,679.18 to be realized on collection of the
                  notes. Maturities of the Note Receivable are as follows:

                      FOR THE 12 MONTHS ENDING
                             SEPTEMBER 30,                  PRINCIPAL AMOUNT
                      ------------------------              ----------------
                               2004                             $ 22,970
                               2005                               11,654
                               2006                               12,811
                               2007                               14,082
                               2008                               15,481
                               Balance                            91,703
                                                                --------
                                       TOTAL                    $168,701
                                                                ========


                                       14

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 2          NOTES RECEIVABLE (CONT'D)

         B.       Able Oil Company has three (3) Notes Receivable for the sale
                  of oil delivery trucks to independent drivers who also deliver
                  oil for the Company. The Notes bear interest at the rate of
                  12% per annum. Two notes began December 1998 and one began
                  February 1999. The Notes are payable eight (8) months per year
                  September through April, the oil delivery season.

                  Maturities of these Notes Receivable are as follows:

                     FOR THE 12 MONTHS ENDED
                            SEPTEMBER 30,                 PRINCIPAL AMOUNT
                     -----------------------              ----------------
                              2004                            $37,351
                              2005                             14,931
                              2006                              7,091
                              2007                              7,295
                                                              -------
                                      TOTAL                   $66,668
                                                              =======

NOTE 3          INVENTORIES

<TABLE>
<CAPTION>
                            ITEMS                              SEPTEMBER 30,    JUNE 30,
                            -----                                  2003           2003
                                                                   ----           ----
<S>                                                              <C>            <C>
                            Heating Oil                          $ 317,686      $ 241,107
                            Diesel Fuel                             21,399         18,921
                            Kerosene                                 5,563          2,534
                            Propane                                  6,884          8,851
                            Parts, Supplies and Equipment          733,487        518,009
                                                               -----------       --------
                                 TOTAL                          $1,085,019      $ 789,422
                                                                ==========      =========
</TABLE>

NOTE 4         NOTES PAYABLE BANK

         A.       On September 22, 2003, the Company closed a new loan facility
                  with UPS Capital Business Credit. The facility is a $4,300,000
                  term loan, payable over fifteen (15) years with interest at
                  the prime rate, plus 1.75%, and a line of credit of $700,000
                  with interest at prime plus 1.00%. The payments on the term
                  loan, due the first of each month, include principal, interest
                  of $35,900.04, and real estate tax escrow of $2,576.63,
                  totaling $38,476.67. Real estate tax escrow of $7,745.03 was
                  paid at closing. September 30, 2003 was the first payment and
                  included nine (9) days of interest plus principal totaling
                  $20,382.02. Any payment received more than five (5) days after
                  the due date is subject to a late charge of 5% of such
                  payment. Upon the occurrence of an event of default under the
                  loan shall bear interest at five percentage points (5%) above
                  the rate otherwise in effect under the loan.



                                       15

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 4          NOTES PAYABLE BANK (CONT'D)

         A.       The collateral will be as follows for the term loan:

                  1. A first mortgage on properties located at 344 Route 46,
                     Rockaway, NJ and 38 Diller Avenue, Newton, NJ

                  2. A first security interest equipment and fleet vehicles

                  3. A first security interest in the customer list

                  TERMS AND COLLATERAL RELATED TO THE REVOLVING LINE OF CREDIT

                  Interest is payable monthly on the first day of each month, in
                  arrears. This loan shall be paid down annually for a minimum
                  of thirty (30) days at the borrower's discretion, but prior to
                  renewal. The maturity is annually renewing from the closing
                  date. This part of the loan is secured by a first priority
                  lien on accounts receivable and inventory.

                  The Revolving Line of Credit will have rates supported by 75%
                  on accounts receivable less than 90 days outstanding, plus 50%
                  on inventory.

                  The loan facility is guaranteed by Able Energy, Inc. Officers
                  loans are subordinated to the lender and will remain
                  standstill until all debt due to the lender is paid in full.

                  The agreement contains certain financial covenants:

                  1. Limit of unfinanced capital expenditures not to exceed
                     $350,000 for fiscal year 2004.

                  The Company paid the following loans on September 22, 2003:

<TABLE>
<S>                                                        <C>
                  Fleet Bank                               $  1,340,644 (including interest and fees of $70,644)
                  KMA Associates                                750,000
                  Jeff Will                                     505,000 (including interest of $5,000)
                  Estate of Birdsal                             657,895 (including interest of $7,895)
                  Long-term Debt                              1,084,866
                                                           ------------
                                    Total Refinance           4,338,405
                  Other Fees and Costs Paid at Closing          123,198
                                                           ------------
                                    Total                  $  4,461,603
                                                           ============
</TABLE>

                  The loan advanced was $4,300,000, the balance of $161,603 was
                  paid by the Company.

<TABLE>
<S>                                                                      <C>
                  The balance of the loan at September 30 is             $4,284,704
                  Included in current portion of long-term debt             185,229
                                                                         ----------
                  Included in long-term debt - less current portion      $4,099,475
                                                                         ==========
</TABLE>



                                       16


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 4          NOTES PAYABLE BANK (CONT'D)

                  On October 22, 2001, the Company and its subsidiaries, either
                  as Borrower or Guarantor, entered into a loan and security
                  Agreement with Fleet National Bank. The bank is providing the
                  following credit facility.

                  A borrowing base of 75% of Eligible Accounts Receivable, as
                  defined in the Agreement, plus $500,000 against the value of
                  the Company's customer list, for a total amount of $1,500,000.
                  The revolving credit may also be used for Letters of Credit,
                  with the lender's approval.

                  The Letters of Credit will have an annual fee of 1.25% of the
                  face value of each Letter of Credit. The applicable interest
                  rate on the revolving credit advances will be the bank's prime
                  rate or Libor interest rate, plus 2.75%, see below increase in
                  interest rate. Interest is to be paid on the amount advanced
                  on the last day of each month.

                  The Agreement had an expiration date of November 30, 2002.
                  Fleet Bank did not renew the credit facility upon expiration
                  of the Agreement on November 30, 2002. Effective December 1,
                  2002, the bank is charging an additional annual interest of 4%
                  as the Note is in default. The total current interest rate
                  charged is currently 8.25% per annum. The Company and Lender
                  have entered into a Forbearance Agreement, where the Lender is
                  willing to forbear until May 31, 2003 from exercising its
                  rights and remedies. The Lender will receive a forbearance fee
                  of $50,000 at May 31, 2003, reduced by $2,500 for each week
                  prior to May 31, 2003, that the credit facility and all
                  charges are paid in full, with a minimum forbearance fee of
                  $15,000. The interest charged is at 8.25% per annum. The
                  principal amount outstanding is $1,270,000. Interest for the
                  three months ended September 30, 2003 was $18,062. The loan
                  and the $50,000 forbearance fee were not paid at May 31, 2003.
                  The note payable plus forbearance fee, accrued interest and
                  other costs were paid in full on September 22, 2003, in the
                  amount of $1,340,644 (See Note 4 A). The bank released all the
                  collateral securing the Company debt.

NOTE 5          NOTES PAYABLE

         A.       The Company has borrowed $500,000 from an unrelated
                  individual. The Note was dated June 26, 2001 with interest at
                  12% per annum. The interest will be paid monthly at $5,000 per
                  month commencing on August 1, 2001. The Note will mature on
                  June 26, 2002 unless the borrower (the Company), at its
                  option, elects to extend the maturity date to December 26,
                  2002. The Company has exercised its option and has extended
                  the Note to December 26, 2002. The lender has granted the
                  Company an additional extension at the same terms to June 26,
                  2003. The Lender has granted the Company an extension to July
                  26, 2003. The Note may be prepaid in whole or part from
                  time-to-time without penalty. No principal payments have been
                  made on the Note. At the maturity date, a final payment of the
                  unpaid principal and interest shall be due and payable. In
                  connection with this Note, the Company has issued the lender
                  warrants to purchase 40,000 shares of its common stock at $4
                  per share. The warrants vest immediately and must be exercised
                  no later than June 26, 2004. The warrants have not been
                  registered under the Securities Act of 1933. The Note was paid
                  in full on September 22, 2003 (See Note 4 A).



                                       17

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003


NOTE 5          NOTES PAYABLE

         B.       The Company has borrowed $750,000 from an unrelated company.
                  The mortgage and note are dated September 13, 2002. The term
                  of the note is for one (1) year. Payments of interest only on
                  the outstanding principal balance shall be paid monthly at a
                  rate of 10%. The first payment was paid on November 1, 2002
                  and on the first day of each month thereafter until October 1,
                  2003, when the Note shall mature and all principal and accrued
                  interest shall be due and payable in full. The Note was paid
                  in full on September 22, 2003 (See Note 4 A).

         C.       The Company has borrowed $335,000 from an unrelated Company.
                  The mortgage and Note are dated April 16, 2003. The loan is to
                  Able Energy New York, Inc., a wholly owned subsidiary. The
                  loan is collateralized by a mortgage on property in Lake
                  George, New York owned by the subsidiary and a second mortgage
                  on property in Bolton, New York, owned by the Company's CEO
                  who is also a guarantor on the loan. Payments of interest only
                  on the outstanding principal balance at a rate of 14% per
                  annum, are payable monthly. The first payment was paid June 1,
                  2003. The entire amount, both principal and accrued interest
                  shall be due and payable on May 1, 2004.

NOTE 6          LONG-TERM DEBT

                  Mortgage note payable dated, August 27, 1999, related to the
                  purchase of B & B Fuels facility and equipment. The total note
                  is $145,000. The note is payable in the monthly amount of
                  principal and interest of $1,721.18 with and interest rate of
                  7.5% per annum. The initial payment was made on September 27,
                  1999, and continues monthly until August 27, 2009 which is the
                  final payment. The note is secured by a mortgage made by Able
                  Energy New York, Inc. on property at 2 and 4 Green Terrace and
                  4 Horican Avenue, Town of Warrensburg, Warren County, New
                  York. The balance due on this Note at September 30, 2003 and
                  June 30, 2003 was $98,448 and $101,724, respectively.

                  Mortgage note payable dated, August 31, 1999, related to the
                  purchase of the facility and equipment in Rockaway, New Jersey
                  by Able Energy Terminal, LLC ("Terminal"). The note is in the
                  amount of $650,000.

                  Pursuant to Section 4.4 of the Agreement of Sale to purchase
                  the Terminal, , the Principal Sum of the $650,000 Note shall
                  be reduced by an amount equal to one-half of all sums expended
                  by Borrower on the investigation and remediation of the
                  property provided, however, that the amount of said reduction
                  shall not exceed $250,000 (the "Remediation Amount").

                  The Note is collateralized by the property and equipment
                  purchased and assignment of the leases. The Note was paid in
                  full on September 22, 2003 in the amount of $650,000 plus
                  interest of $7,895 (See Note 4 A).

                  The Company has long-term debt represented by Notes Payable
                  and capitalized leases collateralized by trucks, vans, office
                  and computer equipment. The total outstanding at June 30, 2003
                  was $1,433,731. On September 22, 2003, $1,084,866 of these
                  Notes, then outstanding, were paid in full (See Note 4 A).



                                       18

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 7          INCOME TAXES

                  Effective January 1, 1997, the Company adopted Statement of
                  Financial Accounting Standards No. 109, Accounting for Income
                  Taxes.

                  The differences between the statutory Federal Income Tax and
                  Income Taxes Continuing Operation is accounted for as follows:

                                                        2003
                                                 ------------------
                                                 AMOUNT     PERCENT
                Statutory Federal Income Tax     $12,436     15.0%
                State Income Tax                   5,329      6.5
                                                 -------     ----
                Income Taxes                     $17,765     21.5%
                                                 =======     ====

                Income Taxes consist of:
                 Current                         $    --
                 Deferred                         17,765
                                                 -------
                    TOTAL                        $17,765
                                                 =======


                                                         2002
                                                 --------------------
                                                           PERCENT OF
                                                             PRETAX
                                                 AMOUNT      INCOME
                                                 -------   ----------
                Statutory Federal Income Tax     $ 2,175     15.0%
                State Income Tax                     945      6.5
                                                 -------     ----
                Income Taxes                     $ 3,120     21.5%
                                                 =======     ====

                Income Taxes consists of:
                Current                          $    --
                Deferred                           3,120
                                                 -------
                     TOTAL                       $ 3,120
                                                 =======


(Note X)          The State of New Jersey has suspended the use of carryforward
                  losses for the years 2002 and 2003. As such, state income
                  taxes of $45,091 have been shown as a deferred asset and as
                  income taxes payable for the year ended June 30, 2003. New
                  Jersey carryforward is treated separately by the Company. Able
                  Oil Company has a New Jersey Operating Loss of $501,010 which
                  could not be utilized in the current year ended June 30, 2003.
                  Under current New Jersey law, the carryforward will be
                  available after 2003, the Company's fiscal year ending June
                  30, 2005.



                                       19

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 7          INCOME TAXES (CONT'D)

                  The types of temporary differences between the tax bases of
                  assets and liabilities and their financial reporting amounts
                  that give rise to a significant portion of the deferred tax
                  liability and deferred tax asset and their approximate tax
                  effects are as follows at:

                                                           SEPTEMBER 30, 2003
                                                       -------------------------
                                                       TEMPORARY           TAX
                                                       DIFFERENCE        EFFECT
                                                       ----------     ----------
        Depreciation and Amortization                  $ 257,006      $ (73,538)
        Allowance for Doubtful Accounts                  212,298         55,205
        Gain on Sale of Subsidiary                        18,766          4,035
        New Jersey Net Operating Loss Carryforward       501,010         45,091
        (See Note X, Prior Page)

                                                             JUNE 30, 2003
                                                       -------------------------
                                                       TEMPORARY           TAX
                                                       DIFFERENCE        EFFECT
                                                       ----------     ----------
        Depreciation and Amortization                  $(241,993)     $ (70,310)
        Allowance for Doubtful Accounts                  279,913         69,742
        Gain on Sale of Subsidiary                        18,766          4,035
        New Jersey Net Operating Loss Carryforward       501,010         45,091
        (See Note X, prior page)

                  Able Energy, Inc., et al, open years are December 31, 2000 and
                  June 30, 2001, 2002 and 2003. The Company has a net operating
                  loss carryforward of approximately $2,070,000. The net
                  operating loss expires between June 30, 2019 and 2021.

                  These carryforward losses are available to offset future
                  taxable income, if any. The Company's utilization of this
                  carryforward against future taxable income is subject to the
                  Company having profitable operations or sale of Company assets
                  which create taxable income. At this time, the Company
                  believes that a full valuation allowance should be provided.
                  The component of the deferred tax asset as of September 30,
                  2003 are as follows:

                     Net Operating Loss Carryforward - Tax Effect    $728,205
                     Valuation Allowance                             (728,205)
                                                                     --------
                     Net Deferred Tax based upon Net
                         Operating Loss Carryforward                 $  - 0 -
                                                                     ========




                                       20

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 8           NOTE RECEIVABLE - SUBSIDIARY

                  The Company has a Note Receivable from PriceEnergy.Com, Inc.
                  for advances made in the development of the business,
                  including hardware and software costs. All of PriceEnergy.Com,
                  Inc.'s assets are pledged as collateral to Able Energy, Inc.
                  The amount of the note is $1,350,000 dated November 1, 2000
                  with interest at 8% per annum payable quarterly. Principal
                  payments to begin two years after the date of the Note,
                  November 1, 2002. Through September 30, 2003, no principal has
                  been paid. No interest was accrued for the three months ended
                  September 30, 2003 or the six months ended June 30, 2003 as
                  the note is non performing. Unpaid accrued interest due
                  through June 30, 2003 is $234,000. The Note and accrued
                  interest have been eliminated in the consolidated financial
                  statements (See Notes 1 and 13). Able Oil Company has a Note
                  Receivable originally dated September 30, 2002 in the amount
                  of $1,510,372.73 from PriceEnergy.Com, Inc. The Note has been
                  updated for transactions resulting in a balance of $2,202,175
                  with interest at 8% per annum, to be paid quarterly. Principal
                  payments to begin one year after date of Note, October 1,
                  2003, and continue monthly thereafter. The Note is the result
                  of the transference of the unpaid accounts receivable which
                  resulted from the sale of heating oil through PriceEnergy.Com,
                  Inc. Able Oil Company has a second position as collateral in
                  all of the assets of PriceEnergy.Com, Inc. to Able Energy,
                  Inc. No interest has been recorded for the three months ended
                  September 30, 2003. Any payments will go to pay principal. The
                  note receivable and accrued interest have been eliminated in
                  consolidation against the amounts on PriceEnergy.Com, Inc.

NOTE 9          PROFIT SHARING PLAN

                  Effective January 1, 1997, Able Oil Company established a
                  Qualified Profit Sharing Plan under Internal Revenue Code
                  Section 401-K. The Company matches 25% of qualified employee
                  contributions. The expense was $6,215 (2003) and $5,568
                  (2002), for the three months ended September 30.

NOTE 10         COMMITMENTS AND CONTINGENCIES

                  The Company is subject to laws and regulations relating to the
                  protection of the environment. While it is not possible to
                  quantify with certainty the potential impact of actions
                  regarding environmental matters, in the opinion of management,
                  compliance with the present environmental protection laws will
                  not have a material adverse effect on the financial condition,
                  competitive position, or capital expenditures of the Company.

                  In accordance with the agreement on the purchase of the
                  property on Route 46, Rockaway, New Jersey by Able Energy
                  Terminal, LLC, the purchaser shall commence after the closing,
                  the investigation and remediation of the property and any
                  hazardous substances emanating from the property in order to
                  obtain a No Further Action letter from the New Jersey
                  Department of Environmental Protection (NJDEP). The purchaser
                  will also pursue recovery of all costs and damages related
                  thereto in the lawsuit by the seller against a former tenant
                  on the purchased property. Purchaser will assume all
                  responsibility and direction for the lawsuit, subject to the
                  sharing of any recoveries from the lawsuit with the seller,
                  50-50.



                                       21

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 10         COMMITMENTS AND CONTINGENCIES (CONT'D)

                  The seller by reduction of its mortgage will pay costs related
                  to the above up to $250,000 (see Note 6). A settlement has
                  been achieved by the Company with regard to the lawsuit. The
                  settlement provides for a lump sum payment of $397,500 from
                  the defendants to the Company. In return, the defendants
                  received a release from the Estate (the Seller) and a release
                  and indemnification from the Company. The defendants provided
                  a release to Able Energy and the Estate. Pursuant to the
                  original agreement, the Estate receives 50% of the settlement
                  amount, net of attorney fees.

                  This has been amended by an agreement dated November 5, 2001.
                  The entire settlement, net of attorney fees, was collected and
                  placed in an attorney's escrow account for payment of all
                  investigation and remediation costs. Able Energy Terminal, LLC
                  has incurred costs of $102,996 to September 30, 2003, which
                  are included in Prepaid Expenses and must be presented to the
                  attorney for reimbursement. Per management, certain items such
                  as a performance bond are being finalized, then reimbursement
                  can be made.

                  The costs of the cleanup pursuant to the Agreement of Sale
                  must be shared equally (50/50) by the seller and purchaser up
                  to Seller's cap of $250,000. Seller's contribution to the
                  cleanup is in the form of a reduction to the Note and not by
                  direct payments. In the opinion of management, the Company
                  will not sustain costs in this matter which will have a
                  material adverse effect on its financial condition.

                  Able Oil Company is under contract to purchase #2 oil as
                  follows:

<TABLE>
<CAPTION>
                                                                               GALLONS OPEN     OPEN DOLLAR
                                                                                COMMITMENT      COMMITMENT
          COMPANY                              PERIOD        TOTAL GALLONS      AT 9/30/03      AT 9/30/03
          -------                              ------        -------------     -----------      ----------
<S>                                      <C>                      <C>             <C>             <C>
          Total Energy  Solutions, LLC   10/1/03 - 4/30/04        588,000         588,000         $446,477
          Conectiv Energy                11/1/03 - 3/31/04      1,008,000       1,008,000          816,472
          Center Oil                     12/1/03 - 2/28/04        252,000         252,000          202,692
          Petrocom                       11/1/03 - 3/31/04        462,000         462,000          355,278
          Sunoco (1)                     12/1/03 - 2/28/04        210,000         210,000          191,835
          Petrocom (1)                   11/1/03 - 3/31/04        336,000         336,000          259,661
                                                                ---------      ----------       ----------

          Total                                                 2,856,000       2,856,000       $2,272,415
                                                                =========       =========       ==========
</TABLE>

         (1) Product for two franchisees, contracts with Able Oil Company





                                       22


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 10         COMMITMENTS AND CONTINGENCIES (CONT'D)

                  Able Energy New York, Inc. is under contract to purchase #2
                  oil as follows:

<TABLE>
<CAPTION>
                                                           GALLONS OPEN    OPEN DOLLAR
                                                            COMMITMENT     COMMITMENT
          COMPANY          PERIOD         TOTAL GALLONS     AT 9/30/03     AT 9/30/03
          -------          ------         -------------    ------------    -----------
<S>                                           <C>            <C>            <C>
          Sprague    11/1/03 - 2/28/04        126,000        126,000        $206,557
                                             --------        -------        --------
          Total                               126,000        126,000        $206,557
                                             ========        =======        ========
</TABLE>

                  Following an explosion and fire that occurred at the Able
                  Energy Facility in Newton, NJ on March 14, 2003, and through
                  the subsequent clean up efforts, Able Energy has cooperated
                  fully with all local, state and federal agencies in their
                  investigations into the cause of this accident.

                  On April 2, 2003, Able Energy received a Notice Of Violation
                  from the New Jersey Department of Community Affairs ("DCA")
                  citing a total of 13 violations to the New Jersey
                  Administrative Code, Liquefied Petroleum Gas. Twelve of the
                  violations were assessed a penalty of $500 each. One of the
                  violations, regarding the liquid transfer from one truck to
                  another truck, was assessed a penalty of $408,000, a second
                  notice was received on April 29, 2003, for an alleged
                  violation on April 12, 2003, and a fine of $5,500 was assessed
                  for a total of $419,500. This amount is included in accrued
                  expenses at June 30, and September 30, 2003.

                  The DCA document is currently under review by counsel. Based
                  upon initial review, the company disagrees with many of the
                  findings of the report and disputes many of the allegations.
                  The company has contested the DCA Notice of Violation and the
                  assessed penalties. Counsel and the DCA have had several
                  meetings and hearings are currently docketed in the Office of
                  Administrative Law (See Note 22).

                  Other violations have been sited by the NJ DCA. The penalties
                  assessed amount to $4,000. The Company has appealed the
                  assessments to the Office of Administrative Law.

                  Company personnel met with personnel of the United States
                  Occupational Safety and Health Administration ("OSHA") on
                  September 12, 2003. OSHA has conducted an investigation
                  relating to the safety practices of the Company, including
                  such practices relating to the March 14, 2003 explosion and
                  fire. OSHA has informed the Company it will be assessed a
                  penalty of $16,000 based upon violations sited. This amount is
                  included in Accrued Expenses at June 30, and September 30,
                  2003.

                  The Sussex County, New Jersey, Prosecutor's Office is
                  conducting and investigation as a result of the March 14, 2003
                  explosion and fire. No determination has been made with
                  respect to its investigation.



                                       23


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 10         COMMITMENTS AND CONTINGENCIES (CONT'D)

                  A lawsuit has been filed against the Company by property
                  owners who allegedly suffered property damages as a result of
                  the March 14, 2003 explosion and fire. The Company's insurance
                  carrier is defending as related to compensatory damages. Legal
                  counsel is defending on the punitive damage claim. Per legal
                  counsel, it is too early in the process to assess the outcome,
                  in their opinion, the matter will not be certified as a Class
                  Action.

                  As a result of the March 14, 2003 explosion and fire, various
                  claims for property damage have been submitted to the
                  Company's insurance carrier. These claims are presently being
                  handled and, in many cases, settled by the insurance carrier's
                  adjuster. There are approximately 200 claims being handled and
                  adjusted with reserves for losses established as deemed
                  appropriate by the insurance carrier.

                  The Company in the normal course of business has been involved
                  in law suits. Current suits are being defended by the
                  insurance carrier and should be covered by insurance.

NOTE 11         OPERATING LEASE

                  Able Energy Terminal, LLC, has acquired the following lease on
                  the property it purchased on Route 46 in Rockaway, New Jersey.

                  The lease with Able Oil Company, a wholly owned subsidiary of
                  Able Energy, Inc., has an expiration date of July 31, 2004.
                  The lease provides for a monthly payment of $1,200 plus a one
                  cent per gallon through put, as per a monthly rack meter
                  reading.

                  Estimated future rents are $14,400 per year, plus the one cent
                  per gallon through put charges per the monthly rack meter
                  readings.

                  The Company leased 9,800 square feet in the Rockaway Business
                  Centre on Green Pond Road in Rockaway, New Jersey. The
                  facility will be used as a call center and will combine the
                  administrative operations in New Jersey in one facility. The
                  lease has a term of five (5) years from August 1, 2000 through
                  July 31, 2005.

                  The rent for the first year is $7,145.83 per month and the
                  second through fifth year is $7,431.67 per month, plus 20.5%
                  of the building's annual operational costs and it's portion of
                  utilities. The current monthly rent, including Common Area
                  Charges, is $9,799.04 per month.

                  The lease does not contain any option for renewal. The rent
                  expense was $29,237 for the three months ended September 30,
                  2003. The estimated future rents are as follows:

                         YEAR ENDED JUNE 30,
                         -------------------
                                 2004                    $ 117,588
                                 2005                      117,588
                                 July 2005                   9,799
                                                         ---------
                                          TOTAL          $ 244,975
                                                         =========


                                       24


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 11         OPERATING LEASE

                  The following summarizes the month to month operating leases
                  for the other subsidiaries:

                       Able Oil Melbourne        $500.00, per month
                                                 Total rent expense, $1,500
                       Able Energy New York      $700.00, per month
                                                 Total rent expense, $2,100

NOTE 12          FRANCHISING

                  The Company sells franchises permitting the operation of a
                  franchised business specializing in residential and commercial
                  sales of fuel oil, diesel fuel, gasoline, propane and related
                  services. The Company will provide training, advertising and
                  use of Able credit for the purchase of product, among other
                  things, as specified in the Agreement. The franchisee has an
                  option to sell the business back to the Company after two (2)
                  years of operations for a price calculated per the Agreement.

                  The Company signed its first franchise agreement in September
                  2000. On June 29, 2001, PriceEnergy.Com Franchising, LLC, a
                  subsidiary, signed its first franchise agreement. The
                  franchisee will operate a B-franchised business, using the
                  proprietary marks and a license from PriceEnergy.Com, Inc. and
                  will establish the presence of the franchisee's company on the
                  PriceEnergy Internet Website. The franchisee will have the
                  exclusive territory of Fairfield County, Connecticut as
                  designated in the agreement. No new franchise agreements have
                  been signed.


NOTE 13         RELATED PARTY TRANSACTIONS

                  $44,690 is due from the major Shareholder/Officer of the
                  Company. This amount is evidenced by a Note bearing interest
                  at a rate of 6% between the Shareholder and the Company. This
                  Shareholder has loaned the Company a total of $380,000 as of
                  June 30, 2003 and September 30, 2003, as evidenced by a Demand
                  Note with interest at 6% per annum, which can be paid all or
                  in part at any time without penalty. The balance of the new
                  note is $364,878 at September 30, 2003. Interest expense has
                  been accrued in the amount of $4,803.

                  The following officers of this Company own stock in the
                  subsidiary, PriceEnergy.Com, Inc., which they incorporated in
                  November 1999.

                       Chief Executive Officer             23.5%
                       President                            3.6%

                  No capital contributions have been made by these officers (See
                  Notes 1 and 8).



                                       25


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 14         EARNINGS PER SHARE

                  The shares used in the computation of the Company's basic and
                  diluted Earnings Per Common Share are as follows:

                                                  SEPTEMBER 30,    SEPTEMBER 30,
                                                      2003             2002
                                                   ---------        ---------
       Weighted Average of Common
              Shares Outstanding Used in Basic
            Earnings Per Share                     2,013,250        2,003,831

       Dilutive Effect of:
           Employee Stock Options                         --               --
           Stock Warrants                                 --               --
                                                   ---------        ---------
       Weighted Average Common Shares
            Outstanding Used in Diluted
             Earnings Per Share                    2,013,250        2,003,831
                                                   =========        =========


                  Weighted average common shares outstanding, assuming dilution,
                  includes the incremental shares that would be issued upon the
                  assumed exercise of stock options, and stock warrants. For
                  2003, approximately 435,840 of the company's stock options and
                  stock warrants were excluded from the calculation of diluted
                  earnings per share because their inclusion would have been
                  anti- diluted, 385,840 (2002). These options and warrants
                  could be dilutive in the future. The numerator for the
                  calculation of both basic and diluted earnings per share is
                  the earnings or loss available for common stockholders. The
                  above table shows the denominator for basic and diluted
                  earnings per share.

NOTE 15          STOCK OPTION PLANS

                  The Company has stock option plans under which stock options
                  may be issued to officers, key employees, and non-employee
                  directors to purchase shares of the Company's authorized but
                  unissued common stock. The Company also has a stock option
                  plan under which stock options may be granted to employees and
                  officers.

                  Options granted currently expire no later than 3 to 5 years
                  from the grant and have vesting periods from none to 25% at
                  grant and 25% each anniversary.





                                       26


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 15          STOCK OPTION PLANS

                                                 OUTSTANDING OPTIONS
                                    --------------------------------------------
                                    NUMBER OF SHARES   EXERCISE PRICE     TERM
                                    ----------------   --------------    -------
           January 6, 2000
              Grants                    56,000             $5.00         5 years
              Exercises                      0

           December 1, 2000
              Grants                    48,090             $3.25         3 years
              Exercises                  1,250

           December 21, 2000
              Grants                    60,000             $1.80         5 years
              Exercises                      0

              Grants                    23,000             $2.25         5 years
              Exercises                      0

           October 22, 2002
              Grants                    50,000             $3.00         5 years
              Exercises                      0


NOTE 16         STOCK WARRANTS

                  The Company has issued stock warrants as follows:

         D.       60,000 Common Stock Purchase Warrants at $4.81 per share,
                  effective August 31, 2000, and expiring August 31, 2005, to
                  Andrew Alexander Wise & Company in connection with an
                  investment banking advisory agreement with the Company, dated
                  July 1, 2000.

         E.       40,000 Common Stock Purchase Warrants at $4.00 per share,
                  effective June 26, 2001 and expiring June 26, 2004, in
                  connection with a $500,000 Note Payable (See Note 5). These
                  warrants have not been registered under the Securities Act of
                  1933.

         F.       100,000 Common Stock Purchase Warrants at $4.00 per share,
                  effective September 13, 2002, and expiring September 13, 2004,
                  in connection with a $750,000 Note Payable (see Note 5).

                  The 200,000 warrants to purchase shares of common stock were
                  outstanding during the third quarter of 2003 and were not
                  included in the computation of diluted EPS as the warrants'
                  were all higher than the average stock price of $3.36 and
                  would have been anti-diluted (See Note 14). These warrants
                  have not been registered under the Securities Act of 1933.



                                       27

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 17           COMPENSATED ABSENCES

                  There has been no liability accrued for compensated absences;
                  as in accordance with Company policy, all compensated
                  absences, accrued vacation and sick payment must be used by
                  December 31st. At September 30, 2003, any amount for accrual
                  of the above is not material and has not been computed.


NOTE 18           CASH FLOW INFORMATION

                  The Directors received Common Stock as payment of Directors'
                  Fees, $24,000, in the quarter ended September 30, 2002. No
                  cash was received or paid.

NOTE 19           INSURANCE CLAIM

                  The Company suffered a loss on March 14, 2003 of a building,
                  trucks, leasehold improvements, product inventory and
                  equipment as well as cost of cleanup and restoration. The
                  Company has filed an insurance claim. The insurance adjusters
                  are in the process of finalizing the amounts to be paid to the
                  Company. The estimated costs are $1,023,145 and is currently
                  shown as an Insurance Claim Receivable and deferred costs
                  insurance claims on the balance sheet. Management anticipates
                  the insurance recovery will cover the company costs. The
                  following is a summary of insurance claims filed:

                      Building (commercial property)    $349,526
                      Paid by September 30, 2003         160,934     $188,592
                                                        --------
                      Contents                                        443,411
                      Vehicles                          $302,674
                      Paid by September 30, 2003         167,735      134,939
                                                        --------    ---------
                                       Total                         $766,942
                                                                    =========

                  The above amounts were submitted as claims but do not
                  represent a settlement with the insurance carriers, except for
                  the commercial property settlement. A partial payment of
                  $160,934.37 was received on July 22, 2003, related to the
                  commercial property. The balance of $188,592.00 was received
                  October 21, 2003. Vehicle payments of $122,700.38 were
                  received in October 2003.





                                       28


<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2003 AND SEPTEMBER 30, 2003



NOTE 20           BUSINESS SEGMENT INFORMATION

                  The Company does not have separate operating financial
                  segments. The financial information is evaluated on a company
                  wide basis. As such, no segment reporting is prepared for
                  internal use.


NOTE 21           RECLASSIFICATION

                  The Company has entered into a financing agreement with UPS
                  Capital Business Credit, that permits the Company to borrow a
                  $4,300,000 term loan, payable over fifteen (15) years. The
                  loan closed on September 22, 2003 (see Note 4). The Company
                  used the funds in part to repay short-term debt of $3,170,000,
                  a bank loan of $1,270,000 and other notes totaling $1,900,000.
                  In accordance with Financial Accounting Standards Board FAS6,
                  the refinanced short-term debt at June 30, 2003, has been
                  reclassified to long-term as "Short-Term Debt Refinanced".


NOTE 22           SUBSEQUENT EVENT

                  In a complaint dated October 6, 2003, the New Jersey
                  Department of Community Affairs commenced a civil action
                  against the Company seeking injunctive relief enjoining the
                  Company, its subsidiaries, affiliated companies, agents,
                  employees and corporate officers, from engaging in the
                  distribution, sale, purchase or receipt of liquified petroleum
                  gas. Pursuant to an order dated October 15, 2003, the Superior
                  Court of New Jersey ordered a hearing to be held on November
                  12, 2003, at which time the Company shall show cause why a
                  preliminary injunction shall not be ordered preliminarily
                  enjoining the Company, its subsidiaries, affiliate companies,
                  agents, employees and corporate officers, from engaging in the
                  distribution, sale, purchase or receipt of liquified petroleum
                  gas and from engaging in any form of business operations for
                  the distribution and sale of liquified petroleum gas.

                  Certain temporary restraints were also ordered upon the
                  Company which will be imposed until the conclusion of the
                  November 12 hearing. The order requires the Company to retain
                  the assistance of Boyer Safety Services, experts in the
                  propane industry, to assume responsibility and authority of
                  Able Propane's daily operational, compliance an/or safety
                  issues relating to its propane business.

                  The order prohibits Able Propane from entering into any new
                  delivery or installation contracts for the delivery of propane
                  other than those customers existing on the date of the order.
                  Able Propane may, however, honor contracts, commitments or
                  arrangements entered into prior to the date of the order.

                  The Company is vigorously disputing that it is a proper party
                  to the action and is contesting any administrative and
                  equitable remedies sought by the Department of Community
                  Affairs.



                                       29


<PAGE>


ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
              RESULTS OF OPERATIONS

ABLE ENERGY, INC. AND SUBSIDIARIES

Statements in this Quarterly Report on Form 10-Q concerning the Company's
outlook or future economic performance, anticipated profitability, gross
billings, expenses or other financial items, and statements concerning
assumptions made or exceptions to any future events, conditions, performance or
other matters are "forward looking statements," as that term is defined under
the Federal Securities Laws. Forward-looking statements are subject to risks,
uncertainties, and other factors that would cause actual results to differ
materially from those stated in such statements. Such risks, and uncertainties
and factors include, but are not limited to: (i) changes in external competitive
market factors or trends in the Company's results of operation; (ii)
unanticipated working capital or other cash requirements and (iii) changes in
the Company's business strategy or an inability to execute its competitive
factors that may prevent the Company from competing successfully in the
marketplace.

              REVENUE RECOGNITION

              Sales of fuel and heating equipment are recognized at the time of
              delivery to the customer, and sales of equipment are recognized at
              the time of installation. Revenue from repairs and maintenance
              service is recognized upon completion of the service. Payments
              received from customers for heating equipment service contracts
              are deferred and amortized into income over the term of the
              respective service contracts, on a straight-line basis, which
              generally do not exceed one year.

              RESULTS OF OPERATIONS

              THREE MONTHS ENDED SEPTEMBER 30, 2003, COMPARED TO THE THREE
              MONTHS ENDED SEPTEMBER 30, 2002.

              The Company reported revenues of $6,850,212 for the three months
              ended September 30, 2003, an increase of 9.90% over the prior
              year's revenues for the same three-month period. This increase can
              be attributed primarily to the Company's continued aggressive
              sales activities, which resulted in a growing customer base as
              well as an increase in commercial sales as well as #2 heating oil
              and propane gas. In fiscal year 2002, management instituted a
              business plan to market and sell other liquid products,
              specifically propane gas and diesel fuel during the warmer months.
              These changes were initiated to help even out the seasonality of
              the Company's business when heating related sales are generally
              down. Management has committed to a reasonable gross margin
              percentage to allow for profitability on the sale of these
              products.

              Gross profit margin, as a percentage of revenues, for the three
              months ended September 30, 2003, and 2002 were relatively the same
              with an increase of $56,226 due to the increase in sales. The
              continuing increase in margin is the result of the Company's
              margin management policy, which enacted in September of 2001, and
              is designed to maximize margins, by product segment, on each of
              the products and services that it markets to the consumer. This
              program is designed to promote product pricing that is in line
              with the specific type of service provided.

              Selling, General, and Administrative expenses, as a percent of
              sales, increased by 4.55% from 19.44% in the quarter ending
              September 30th 2002 to 23.99% during the same period in 2003.
              There were increases in payroll, advertising, a write-off of
              uncollectible accounts and an increase in insurance costs due to
              the unsettled insurance market. Management will continue to
              monitor the fiscal budget against actual results on an ongoing
              basis in an effort to reduce SG&A as a percentage of sales.



<PAGE>


              Operating loss for the three months ended September 30, 2003 was
              $1,069,361, an increase of 57.63% over the Company's operating
              loss of $678,419 for the three months ended September 30, 2002.
              This increased operating loss for the quarter was directly related
              to the increased operating costs.

              Net loss for the three months ended September 30, 2003 increased
              by $781,463 to $1,511,290 as compared to the same period for the
              previous year loss of $729,827. This net loss was the result of
              seasonal factors in the sale of heating oil, propane, and related
              products in the summer months and higher operating costs plus
              additional interest on refinancing and legal costs. Due to the
              seasonal nature of the business, the 1st fiscal quarter typically
              experiences the lowest sales volume and net income of the four
              quarters for the Company.

              OPERATIONAL EFFICIENCIES

              The Company believes that it will continue to increase the
              utilization of existing personnel and equipment, thus reducing
              expenses and increasing profitability, within its current business
              configuration.

              The Company continues full implementation of its new margin
              management program which has been designed to increase
              profitability without sacrificing customer appeal. The Company
              believes that there is value to the products and services that it
              provides to its consumers in varying levels based upon the
              specific needs of the consumer and the products provided. This
              program is working and has been expanded to include equipment
              sales and services.

              On October 1st The Company began billing for its in home heating
              repairs utilizing a methodology known as "Flat Rate Pricing", an
              approach similar to that used in the automobile repair field. Flat
              rate pricing will be introduced in stages with the first phase
              having commenced in October. This system gives sales and service
              personnel the ability to offer the customer an easy to understand,
              "package approach" to repairs and equipment installations with one
              or two line billings per invoice. This system will interface with
              the Company's automated dispatch communications program that was
              introduced last year. It is anticipated that this system will be
              fully implemented by the end of the current fiscal year.


              OPERATING SUBSIDIARY

              The company's operating subsidiary, PriceEnergy with its modern
              order-processing platform is now entering its third full year of
              operation. The revolutionary proprietary technology is fully
              automated and allows for the removal of the inefficiencies
              associated with traditional heating oil companies within this
              industry. PriceEnergy has generated over 2 million gallons in new
              business last year, which were delivered by PriceEnergy's dealer
              network. In December 2002, PriceEnergy began sales of Home Heating
              Oil in the initial BJ's Wholesale Club. Since then, gallons sold
              through this venue have been increasing with each week. The
              Company is excited about the new sales opportunity with its new
              "Channel Partner", BJ's. The Company believes that this is the
              first of many prime retail opportunities to utilize the
              PriceEnergy operating platform to open new markets for the sales
              of heating oil, diesel fuel, and propane gas.


              EXPLOSION AND FIRE

              On March 14, 2003, Able Energy experienced an explosion and fire
              at its Newton, New Jersey facility which resulted in the
              destruction of an office building on the site, as well as damage
              to 18 company vehicles and neighboring properties. Fortunately,
              due to the immediate response by employees at the site, a quick
              evacuation of all personnel occurred prior to the explosion,
              preventing any serious injuries.

<PAGE>


              The results of the company's investigation indicate that the
              explosion was an accident that occurred as a result of a
              combination of human error, mechanical malfunction, as well as the
              failure to follow prescribed state standards and company policy
              for propane delivery truck loading. On April 3, 2003, Able Energy
              received a Notice of Violation from the New Jersey Department of
              Community Affairs. The dollar amount of the assessed penalty
              totaled $414,000. Able Energy has contested the notice of
              Violation as well as the assessed penalties with the State of New
              Jersey and a hearing date is pending.

              The Company has taken the lessons learned from this event very
              seriously. Able Energy has worked closely, and cooperated fully
              with all local and state officials in clean-up phase, tank testing
              process, and subsequent investigations. Strict and clear employee
              communications have taken place to reinforce compliance with all
              governmental regulations as well as all company policies regarding
              the safe and proper handling of propane. The Company has retained
              the assistance of Boyer Safety Services, experts in the propane
              industry; to hold safety-training sessions for all propane related
              employees. This training will be ongoing and will upgrade employee
              training to the most modern and up-to-date levels as well as
              reinforce Able Energy's commitment to operate all aspects of the
              company in a professional, responsible, and safe manner.

              The Company is currently not processing deliveries from the
              Newton, New Jersey facility as it awaits the outcome of an appeal
              before the Newton Board of Adjustment as to the future operations
              from that site. Company operations have continued throughout the
              aftermath of the incident using its main distribution facility in
              Rockaway, New Jersey along with temporary `through-put' agreements
              with two other area marketers. The Company believes that its
              Newton facility is crucial to its future operations, especially
              during the winter heating season, and is working diligently to
              obtain approval to resume its core heating oil operations at that
              site.


              RECENTLY IMPLEMENTED TECHNOLOGICAL PROCEDURES

              The Company has established goals, which will be accomplished
              through the implementation of some modern technologies that are
              currently being installed into the Company's existing
              infrastructure.

              The Company began introducing additional customer service
              technology to its Rockaway call and administrative center during
              the second fiscal quarter of 2002/2003. Management believes that
              by providing enhancements to existing telephony hardware and
              in-house management, the Company's call center environment will be
              provided with the ability to respond to changing call patterns,
              both higher and lower, without the expense of clerical
              over-staffing to meet unrealized needs. New software will provide
              customers with the option of placing an order via a voice
              activated technology. This will enable customers who simply wish
              to refill their fuel tank, the opportunity to quickly place an
              order 24 hours a day without the help of a live customer service
              representative.

              The Company is now beginning full implementation of the recently
              announced automated dispatch technology, which provides management
              with the ability to communicate with service technicians
              instantaneously. This system also is now performing billing
              functions at the customer's location as well as documenting
              payment data instantaneously. Additionally, management is now
              aware of the status of every on-duty worker and obtains real time
              reporting for stand-by, en-route, and service work time. This
              enables the Company to maximize scheduling opportunities and
              eliminating service technician down time.


<PAGE>


              LIQUIDITY AND CAPITAL RESOURCES

              For the three months ended September 30, 2003, compared to the
              three months ended September 30, 2002, the Company's cash position
              decreased by $237,246 from $680,016 to $442,770. For the year
              ended June 30, 2003, cash was generated through loans, one from a
              private company of $750,000 and officer loan in excess of
              $300,000. In the quarter ending September 30, 2003, the Company
              entered into an agreement and closed a new loan facility. The
              facility provided a term loan of $4,300,000, payable over 15
              years. These funds were used to pay existing debt. There is also a
              line of credit of $700,000. This will enable the Company to
              continue to grow while strengthening its infrastructures. The
              Company also generated funds from customer advance payments.

              SEASONALITY

              The Company's operations are subject to seasonal fluctuations,
              with a majority of the Company's business occurring in the late
              fall and winter months. Approximately 70% of the Company's
              revenues are earned and received from October through March, most
              of such revenues are derived from the sale of home heating
              products including propane gas and home heating oil. However the
              seasonality of the Company's business is offset, in part, by an
              increase in revenues from the sale of HVAC products and services,
              diesel and gasoline fuels during the spring and summer months, due
              to the increased use of automobiles and construction apparatus

              From May through September, Able Oil can experience considerable
              reduction of retail heating oil sales. Similarly, Able Propane can
              experience up to an 80% decrease in heating related propane sales
              during the months of April to September, this is offset somewhat
              by increased sales of propane gas used for pool heating, heating
              of domestic hot water in homes and fuel for outdoor cooking
              equipment.

              Over 90% of Able Melbourne's revenues are derived from the sale of
              diesel fuel for construction vehicles, and commercial and
              recreational sea-going vessels during Florida's fishing season,
              which begins in April and ends in November. Only a small
              percentage of Able Melbourne's revenues are derived from the sale
              of home heating fuel. Most of these sales occur from December
              through March, Florida's cooler months.



<PAGE>


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.


ITEM 4.  CONTROLS AND PROCEDURES

         As of September 30, 2003, an evaluation was performed under the
supervision and with the participation of the Company's management, including
the Principal Executive Officer and the Principal Accounting Officer, of the
effectiveness of the design and operation of the Company's disclosure controls
and procedures. Based on that evaluation, the Company's management, including
the Principal Executive Officer and the Principal Accounting Officer, concluded
that the Company's disclosure controls and procedures were effective as of
September 30, 2003. There have been no significant changes in the Company's
internal controls or in other factors that could significantly affect internal
controls subsequent to September 30, 2003.



<PAGE>


                                     PART II
                                OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

          In a complaint dated October 6, 2003, the New Jersey Department of
          Community Affairs commenced a civil action against the Company seeking
          injunctive relief enjoining the Company, its subsidiaries, affiliated
          companies, agents, employees and corporate officers, from engaging in
          the distribution, sale, purchase or receipt of liquified petroleum
          gas. Pursuant to an order dated October 15, 2003, the Superior Court
          of New Jersey ordered a hearing to be held on November 12, 2003, at
          which time the Company shall show cause why a preliminary injunction
          shall not be ordered preliminarily enjoining the Company, its
          subsidiaries, affiliate companies, agents, employees and corporate
          officers, from engaging in the distribution, sale, purchase or receipt
          of liquified petroleum gas and from engaging in any form of business
          operations for the distribution and sale of liquified petroleum gas.

          Certain temporary restraints were also ordered upon the Company which
          will be imposed until the conclusion of the November 12 hearing. The
          order requires the Company to retain the assistance of Boyer Safety
          Services, experts in the propane industry, to assume responsibility
          and authority of Able Propane's daily operational, compliance an/or
          safety issues relating to its propane business.

          The order prohibits Able Propane from entering into any new delivery
          or installation contracts for the delivery of propane other than those
          customers existing on the date of the order. Able Propane may,
          however, honor contracts, commitments or arrangements entered into
          prior to the date of the order.

          The Company is vigorously disputing that it is a proper party to the
          action and is contesting any administrative and equitable remedies
          sought by the Department of Community Affairs.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)  Exhibits


           31.1   Certification by Chief Executive Officer pursuant to
                            Sarbanes-Oxley Section 302

           31.2   Certification by Chief Financial Officer pursuant to
                            Sarbanes-Oxley Section 302

           32.1  Certification by Chief Executive Officer pursuant to
                              18 U.S. C. Section 1350

           32.2  Certification by Chief Financial Officer pursuant to
                              18 U.S. C. Section 1350

         (b) Reports on Form 8-K

         The Company did not file any reports on Form 8-K during the three
months ended September 30, 2003.


<PAGE>


                                   SIGNATURES


In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on this 14th day of November 2003.


                                    ABLE ENERGY, INC.


                                    /s/ Timothy Harrington
                                    -------------------------------------
                                    Timothy Harrington, Chief Executive Officer,
                                    Secretary, and Chairman

                                    /s/ Christopher P. Westad
                                    -------------------------------------
                                    Christopher P. Westad, President,
                                    Chief Financial Officer, and Director