Michigan attorney general, Inergy settle excessive price claims

Inergy Propane and Michigan Attorney General Mike Cox announced March 26 that they have reached an agreement to resolve claims that the propane retailer overcharged some Michigan customers for product this winter.

Consumers who were not on a fixed price plan had complained that they were being charged as much as $4.39 a gallon this past heating season. According to the attorney general's office, the Michigan Public Service Commission reported that the average residential price per gallon for propane in Michigan from Dec. 3, 2007, to Feb. 19, 2008, ranged from $2.33 to $2.45.

Inergy officials have consistently denied any price gouging.

As part of the agreement, Inergy's Michigan distributors will give local customers who were not enrolled in fixed-price contracts between Nov. 1, 2007, and Feb. 29, 2008, partial refunds or credits. They also agreed to waive some customary fees for those customers.

In addition, the retailers will offer capped or fixed-price contract options to all of its residential "non- contract" customers from June 2008 through May 2009 for less than $3 per gallon. The sign-up charge will be waived.

The marketers have agreed to take additional action to educate consumers about available payment plans that can help them avoid or minimize the effects of high propane prices. Inergy also has been ordered to compensate the attorney general's office for legal and investigative fees incurred.

Inergy has a number of retail operations in Michigan that operate under regional brand names, including Gaylord Gas, Petoskey Propane, Blue Flame Gas, DeCock Bottled Gas, Lagasco Propane, McBride Oil & Propane, Northwest Energy, Pearl Gas, ProGas Propane and Quality Propane.

PHMSA extends NPGA's special permit

The Pipeline and Hazardous Materials Safety Administration approved NPGA's requested extension of the special permit allowing transportation of consumer tanks.

The permit allows for the transportation of a consumer storage tank from the customer's site to the nearest bulk plant when the container is charged with propane in an amount greater than 5 percent.

NPGA argued that DOT would increase safety by providing a means to offload storage tanks with more than 5 percent propane at bulk plants.

The permit, which was granted in June 2006, is now effective until March 31, 2010. NPGA urges members to adhere to its requirements.

PERC responds to economy, higher propane prices

PERC is hoping to grow off-season sales through new technology and to more strategically market propane to consumers and builders.

This plan, PERC said, comes in response to the downturn in the U.S. economy and higher propane prices.

"We are all feeling the impact of the economy right now," said PERC President and CEO Roy Willis. "But we can build upon propane's inherent strengths to keep the industry strong and growing. Propane is a clean and efficient source of energy, and we have products entering the marketplace that have the potential to significantly increase sales."

The council approved projects to support the growth of the propane engine fuel market. This includes a marketing development program designed to educate potential customers on the benefits of on- and off-road propane-powered vehicles. Another program will expand the marketing efforts for the new propane-powered Blue Bird Vision school bus. More than 100 have been sold this year, with 300 the goal.

Projects also have been approved to commercialize propane technologies, including the NovelAire desiccant dehumidifier, which improves the air quality in homes and businesses during the most humid months of the year. PERC also will continue its research and demonstration programs for propane steam and heat applications that control weeds and pests on the farm.

PERC continues to support outreach to builders, who are an integral part of the energy decision-making process. The industry will be represented at various trade shows over the next year.