PROPANE GAS IS A RISKY BUSINESS

PROPANE GAS:

Did you know that propane gas companies are not regulated by the government?  As a result, you are at the mercy of the company you are getting your propane from.  You might think, if I don’t like the current gas company, I can simply change.  That is a good thought but may not be the case.  While you think you may not be under contract to one company you may be under contract to their tank.  Let’s say your tank was installed, for free, by the XX company.  Let’s say the XX company is charging $1,400 to fill that 500 gallon tank.  Let’s also say that BB company is only charging $1,200 to fill your tank.  BB company can not fill your tank because you don’t own the tank.  It’s a violation for the BB company to fill another company’s tank.

Let’s talk tank prices.  There are 2 types of tanks, in-ground (the most expensive) and above ground.  To own a 500 gallon in ground tank will cost about $1,800 installed but it’s yours.  Anyone can fill your tank.  If you can’t afford $1,800, you are then agreeing to use propane from the company that installed the tank for free.  Once that happens, you have to pay what they charge or a rental cost will incur.   The rental fee can vary, starting at $77.00 and up every month on top of the cost of the propane gas.

Lets talk propane gas prices:  As stated above, $1,200 to $1,400 will usually fill your tank depending on the current propane gas prices, per gallon.  The least amount of propane gas you can purchase is 100 gallons, which can run between $580 and $325.  Why such a difference in price?  The propane gas companies have the right to charge you by your usage.  In other words, if you use a lot of gas, you get to pay less,  If you conserve gas, probably because you can’t afford it, you pay more.  Propane gas cost between $3.25 a gallon vs. natural gas .89 a unit.

Lets talk delivery:  These propane companies have a select day for delivery to your neighborhood.  If you are running out of gas and need an emergency delivery, you will be charged between $100 and $125 just to have them come out on an unscheduled day.

Lets talk fed up, I’m converting:  The propane company will come and get their tank.  If there’s any gas in the tank, you get charged for removal of the gas, plus you lose the gas you’ve paid for.

Lets talk help programs:  A lesser amount is allocated to propane gas users.  Energy audits are not permitted if you use propane because it’s not efficient, propane gas burns faster than natural gas.

Summary:
To own the tank – approximately  $1800
To fill up the tank – often  – $1200
To fill up the tank – conservatively  – $1400

If the gas company owns the tank  – Free to install
To fill up the tank – often – $1200
To fill up the tank – conservatively – $1400

SITUATION

You purchase a house that uses propane gas.  You use the company the former owners were using because you’re new to the world of propane.  Through the years you find the prices at the current company are too high, so you shop around for someone else.  You order gas from the newly found company that’s charging $325 vs the $500 you’re use to paying.  The newly found company won’t deliver because you don’t own the tank.  What do you do?  You’ve fallen on hard times and can no longer afford the higher priced propane.  You’re threatened by your current gas company because you are buying less gas than before.  So they send you a rental invoice of $80.00.  What do you do?

You try converting to Natural Gas but they are taking so long to do their part you have to keep paying for propane because it’s very cold outside.  What do you do?

This is a very real situation for many folks who use propane gas.  It’s a very risky business.  So how do you avoid propane gas.  Even converting is costly and slow.  Permits have to be obtained at a cost upward of $300.00.  You will have to pay a plumber to change pipes to larger sized pipes, which will run from the newly installed meter to your furnace.  Your furnace, stove, dryer, hot water heater, fireplace, pool  and any other appliance that uses gas will have to be converted from propane use to natural gas.

When shopping for a house, you should invest in a house that already has natural gas.  I think propane gas users need help in the form of regulating the gas companies, cost assistance and large rebates to add in natural gas conversion.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s