In response to Ohio’s severe winter weather and the current propane shortage, Gov. John Kasich issued an emergency declaration on Saturday, Jan. 18.. The energy emergency declaration is in effect through February 16, 2014. Commercial drivers hauling heating oil and propane are now able to remain on the road longer in order to accelerate delivery to all Ohioans.
Propane, a byproduct of natural gas production and crude oil refining, is in short supply not just in Ohio but across the nation.
Locally, customers are reporting increased prices, additional service charges, and only partial fills. However, local suppliers recognize that a partial fill ensures continued heat to homes, most of them rural homes, that rely solely on propane for heat. Approximately six percent of Ohioans use propane to heat their homes.
The Richland County Emergency Management Agency (EMA) has contacted all of the propane vendors in Richland County, one of which was completely out of its supply last week. The agency is working to ensure local residents have heat, and anyone in Richland County experiencing a propane shortage should contact First Call 211 or the Richland County EMA.
There is also a state propane hotline for customers to call: 614-799-3897. With the continued demand, that number is now set up to direct callers to the Public Utilities Commission of Ohio (PUCO) call center, and that number is 1-800-686-PUCO (7826).
PUCO representative Holly Karg explained that the Public Utilities Commission does not regulate propane. “Propane in Ohio is an unregulated industry, so our staff jumping into help was a full force effort to respond to people who need help. We have the wherewithal to be able to do it and a way to do it,” said Karg.
“What the Public Utilities commission is doing, in conjunction with Emergency Management, is we’re trying to get the customers who need a supply with the suppliers who have a supply. And that changes daily. One supplier can be low and get a shipment in tomorrow. Or a supplier may have it but you may have a contract with a supplier who does not have a supply. We’re working to make those connections to get the necessary contract permission for a person to get from an alternative supplier,” Karg explained.
“The protocol is to check your propane supply and report that to us. So that if you are low, we can try to hook you up with a supplier,” she added. In Richland County, residents can call 211 to report their status.
PUCO also offers energy saving tips. Though they are not specific to propane conservation, they can help reduce energy costs.
In a press release Friday, Sen. Sherrod Brown’s office noted that U.S. propane stocks have reached critical lows. Brown joined a bipartisan group of 29 Senators calling on President Obama to use executive authorities, provided by law, to help mitigate the impact of the national propane shortage.
The Senators’ letter reads in part: According to the Energy Information Administration (EIA), U.S. propane stocks have fallen far below the 5-year seasonal average. The most recent EIA report indicates that propane stocks are 24.0 million barrels lower than a year ago, a drop of 43.8 percent As a result, in many areas, residential and wholesale propane prices have doubled, or even tripled, since October. Numerous factors, including extremely cold weather and transportation problems, have resulted in high usage, significant drawdowns, and low stocks. Now, more than twenty states have issued disaster declarations related to the propane shortage.
The letter also noted that “Homes, businesses, and farms desperately need propane, and the shortage threatens the safety of families and the financial stability of farms and businesses. Thankfully, propane suppliers are already responding to market forces and taking extraordinary steps to increase supplies in hard-hit areas.”
Attorney General Mike DeWine’s office is monitoring complaints regarding propane prices and shortages. Laws that address price gouging vary from state to state, and while Ohio does not have a statute that deals directly with price gouging, state law bans unconscionable sales practices.
Consumers who suspect price gouging or other unfair business practices should contact DeWine’s office by calling 800-282-0515 or visiting www.OhioAttorneyGeneral.gov. Consumers should submit as much information and documentation as possible with their complaints.
