Propane prices (Hot water and cooking, not BBQ tanks)

I use propane for cooking and hot water. My current usage is about 150 gal./yr, which seems to put me in the 'bend over and grab the ankles" pricing structure with my current propane company (Agway). Calculating it out I am paying the same rate as I would for electric, which is about $3.50 / gal. I would have to burn over 300 gal/month to get in the next category, which would reduce my rates to about $2.50/gal. All and all I am not happy about this, and almost replaced the 2 appliances to electric out of spite, though I do like gas oven/stoves and also like the ability to have hot water and cook during a power failure.

The contract I have for Agway is easily broken, it is renewed year to year but if their rates go up I can end it.

Now I looked into Amerigas, and they would place me in the 100-200 gal.yr rate plan at $2.44 per gal. So I asked them to send me the papers. After looking at them, I noticed they hand wrote in 5 year contract, also they can change the rates w/o notice and I have very little recourse to break such a contract, plus I am obligated to buy at least 50 gal/yr (at their price) from them even if I don’t use any gas, It seems to apply even if I move, or convert to solar power.

Is this standard practice? Any one else use Amerigas? Do they have some other contract that I have to ask for? Is there any club I can join to get a better deal? Any other suggestions?

Thanks

I just filled my 500 gallon propane tank. My company here in Tennessee charged me $1.88/gal. My contract calls for at least two fill-ups per year, although I don’t have to be empty to have it filled. The company did tell me if I use less than that they’ll switch out my tank to a smaller tank.

StG

My propane company is a little Mom & Pop shop. They sited a 100 gallon tank for an $80 deposit almost 10 years ago and there is no minimum usage clause in the contract. They tried to hit me with a $25 annual fee for low usage, as I only have a water heater on the line, but I reminded tham that the contract contained no such clause or option for them to modify, and they backed off. At last fill-up, I paid about $1.80/gallon.

I go through a small oil/gas company here in Kansas. Typically I do pre-pay in September, which basically means that I have to try and guess how much I’ll use between then and March. Fortunately it’s been pretty consistant 650-700 gallons. I happen to have the bill for my last fill up (he usually comes once a month or so), and I paid $1.02. I don’t know what it will be next September though.

I do know a co-worker forgot to do pre-pay, and had to pay market (last September) and he said it was $1.20/gal. He also said that the delivery guy said he was lucky he called when he did as it was going to $1.25/gal the next day.

Of course 3 years ago I paid .68/gal.

(Actually taking the time to read the OP, and noticing that it doesn’t just ask for prices)
I’ve never heard of Amerigas. I think propane is one of those things that is pretty loosly organized. I know of at least 3 companies servicing my town (of roughly 400 people, maybe 100 houses). I’m not sure about contracts.

The only contract I have (other than pre-pay that I do in September) is a tank rental agreement. I rent the tank for $65/year and agree to have them fill it. If I had some one else fill it, then they take their tank back.

Take care,

GES

I use propane for heating. The rest of the house is electric. I don’t remember exactly how much it was, but I think the last time I filled my 125-gallon tank the gas was $1.67/gallon.

Ironically, there are two gas mains near my house. Unfortunately, Cascade Gas has not yet decided to join them. If they do, then the line will run right in front of my house and I can get my gas piped in. Otherwise it will cost about $10,000 to get a private line. This is a vacation community, and not many people live here year-round. I talked to a neighbour yesterday, and he said, ‘You did well. Your house just went up $50,000.’ When I asked for clarification, he said pointed out that there were no houses for sale here. Could be that more people are electing to stay in the off-season. If this is true, I’m hoping we can petition for a natural gas line to the neighbourhood.

Is it even worth entering a contract at 150 per year? You can just buy an entire year’s supply every summer when the prices generally drop.

A update. I was warned somewhere that if you don’t use enough gas for the national companies you will have to deal with the local mom and pop dealers and pay through the nose, so I didn’t bother contacting them, till now.

I contacted 2 of them, and they both had better deals and no harsh contract. The one signed on with (today) has a price of $2.30/gal, with no setup fees, no per delivery fees, a one year contract and no mimimum gas to buy. The only fee is $50/yr if I use less then 200 gal, which I can deal with. And my 150 gal/yr is based on very strict conservation (mainly out of spite), which would be nice to go back to a normal usage pattern, which was about 220 gal/yr.

One thing I can understand but also think it pit worthy is the practice of charging more per gal for using less. People who wish to save energy might actually be charged more, which seems counterproductive.

Have you tried the local farmer’s co-op? They are the best price and service where I live. Although I live out of town, they will quite cheerfully deliver in local cities.