Frequently Asked Questions
Shown below are answers to frequently asked questions about the use of propane. Contact us if you have other questions.
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Q: Choosing propane is still the right choice.
As energy prices continue to rise, millions of homeowners still choose propane because it's the same clean, safe,
reliable energy source it's always been. And we're here to help you understand the energy industry while providing
ways to conserve resources and save you money.
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Q: Why are propane prices different in various areas of the country?
Propane prices vary in different parts of the country for two key reasons that are related to supply and
demand: weather influences and location.
In the short-term, the demand for propane among residential and commercial customers is affected
significantly by weather. Because weather conditions change rapidly, large and sudden shifts in demand can
occur, creating imbalances that result in price movements.
These weather factors can also influence the propane distribution system. As with all energy sources, propane
prices are influenced by the systems required to transport the energy source from where it is produced to where
it is used, whether through pipelines, ships, or trucks.
Propane prices are also influenced by proximity of the customer to the supply. In an area such as the Gulf Coast,
customers are close to major suppliers and shipping ports, so the effort needed to get propane to its customers
is minimal. Those customers who live farther away usually pay higher prices when transportation costs are added.
Source: Propane Prices, What Consumers Should Know, Energy Information Administration, May 2006.
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Q: Do retailers make more profit during sudden price increases?
No. When wholesale propane prices rise, retailers don't see larger profits. The effect is similar to what happens
to orange juice prices after an early season frost. The grocery stores don't make any extra money because they're
paying more for the product, too.
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Q: Are there steps that consumers can take to guard against winter price increases this year or to help lower
their energy bill in general?
While the factors that contribute to higher fuel prices cannot be controlled by propane retailers or consumers,
there are some simple steps customers can take to lower their energy bill year-round.
The industry encourages homeowners to save on energy costs by following this threestep energy plan:
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Explore fuel payment plan options to spread your projected annual costs over many months, balancing the
costs of seasonally higher bills. Many propane companies offer a "fixed-price" option, and can "lock-in"
a price. Call your propane retailer to see if such an option is available.
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Set up a regular delivery schedule with your retailer. Consider filling your tank before the start of the
heating season rather than waiting until it is empty.
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The federal government is offering a tax credit of up to $500 for qualifying energysaving improvements made
during the 2006 and 2007 calendar years. Credits are available for many home improvements including
high-efficiency heating and cooling equipment such as propane water heaters and furnaces. For more
information visit www.energytaxincentives.org.
Customers can also lower their overall energy bills by making a few small changes in the home:
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Protect against drafts by caulking and weather-stripping around windows, doors, and other openings such as
ducts, fans, and vents.
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Inspect and tune-up your residential heating system regularly for efficiency. Contact your local propane
retailer to inquire about a home heating system inspection. A properly working heating system is more
efficient and will save you money.
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Change your furnace filter monthly. Clean filters will help your heating system work more efficiently. If
on a monthly payment plan, use receipt of your propane bill as a reminder.
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Invest in a furnace thermostat timer that can save money by lowering your home's temperature when you are
not at home. You can cut annual heating bills by as much as 10 percent per year by turning your thermostat
back 10-15 percent for eight hours per day.
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Switch to a propane water heater, which provides significant energy efficiency over an electric water heater.
Over time, propane water heaters can cost one-third less to operate and recover hot water twice as quickly
as electric water heaters.
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When using a water heater, turn it down from the standard 140 degrees to 130 degrees. You could save more
than 10 percent on your water-heating bill.
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Increase your water heater's efficiency by draining it every six months to remove lime deposits and sediment.
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Install flow-restricting showerheads. You can reduce hot water usage by up to 50 percent without affecting
shower pressure.
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Run washing machines --and clothes dryers-- with a full load.
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Close vents and doors in unused rooms. Make sure your attic and basement are properly insulated.
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Q: Create your energy plan.
If you're not on a regular delivery schedule, you should consider filling your propane tank before the start of the
heating season - don't wait until it is empty.
Discuss payment plan options with your propane retailer. Some retailers will help you spread your projected annual
cost of propane over many months, spreading out the costs of seasonally higher bills.
The federal government is offering a tax credit of up to $500 for qualifying energy-saving improvements made during
the 2006 and 2007 calendar years. Tax credits are available for certain home improvements including high-efficiency
heating and cooling equipment such as propane water heaters and furnaces. For more information visit
energytaxincentives.org.
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Q: Are there state or federal government energy assistance programs available?
Yes. The U.S. Department of Energy sponsors a weatherization assistance program to help eligible households
permanently reduce their energy bills by making their homes more energy efficient. Application information
is available on the Internet at
www.eere.energy.gov/weatherization/apply.html.
Additionally, the federal government sponsors the Low-Income Home Energy Assistance Program (LIHEAP). Administered
to consumers by state governments, this program can help qualified low-income households meet their energy needs.
For more information about LIHEAP, call toll-free at 1-866-674-6327 or send an e-mail to energyassistance@ncat.org. You can find more information about LIHEAP
on the Internet at www.acf.hhs.gov/programs/liheap, call toll-free
at 1-866-674-6327 or send an e-mail to energyassistance@ncat.org.
You can find more information about LIHEAP on the Internet at
www.acf.hhs.gov/programs/liheap.
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Q: Are there other websites that can provide assistance or tips on dealing with prices?
Yes. Here is a list of several websites that may be able to provide you with more information regarding energy
price and supply:
Department of Energy:
Alliance to Save Energy: www.ase.org
Propane Education & Research Council: www.usepropane.com
National Propane Gas Association: www.npga.org
For additional information on propane prices, see the May 2006 Energy Information Administration's Propane
Prices: What Consumers Should Know brochure at:
http://www.eia.doe.gov/bookshelf/brochures/propane06/propane.html
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