Propane questions

Sarah K. · #1 04/08/10, 02:37 PM

We moved into our house extremely ignorant about propane, and wound up being ridiculously overcharged. Therefore, I'd like to get learn a little more about the process before we switch suppliers so it doesn't happen again.

-So, as I understand it, when we switch, we pay an early termination fee to our current supplier, who will come and pump the propane from our tank and charge us per gallon to remove the propane plus a fee to remove the tank. Does anyone know how much we should expect to pay to have the tank removed? It doesn't say in our contract.

-Is purchasing our own tank a good deal? How do we get the best price? Do we go through our new supplier or someone else? What maintenance do the tanks require?

-What questions should we be asking our new supplier?

Thanks,
Sarah

texican · #2 04/08/10, 03:07 PM

Finding and purchasing your own tank is the way to go... that we it's yours, and you can shop around for the best price.

Nowadays, craigslist would be the first place I'd look.

I've got several tanks, from people that were moving, 'owned' them, and had no way of transporting them.

Not much maintenance, besides keeping them functional... nice if you don't let wasps make nests under the 'cover'. Back when my parents were on free propane, the first time the delivery man showed up, he inspected all the fittings/set up, to make sure it was all kosher.

blooba · #3 04/08/10, 04:47 PM

Yep, just keep it painted to keep it from rusted but they last for 20+ years with the original powder coat usually.

ronbre · #4 04/08/10, 05:02 PM

you can just use up your propane and not pay to have it removed..we are doing that right now..we are down to about 20 % ...we are changing to a company that will do the reinstall for free and charges $1.49 per gallon

In Michigan..what we do is have our entire township go together (we disucss at township meetings) and we negotiate a covenant with a propane company and then they have everyone in the neighborhood..so our covenant was changed to the new company but we had a full tank when they did that

LonelyNorthwind · #5 04/08/10, 05:16 PM

charges $1.49 per gallon

$1.49 a gallon!!! You don't know how lucky you are! I have to pay $3.56 a gallon and a $90 yearly tank rental fee (100 gal tank). The propane company here won't deliver to a personal tank, if you have your own tank you have to take it to them to be filled - which makes it impossible except for 5 & 10 gallon tanks which forces us to rent their tanks. Jerks my chain to be a captive audience (only in Alaska!).

tyusclan · #6 04/08/10, 05:50 PM

If you pay to have the propane pumped you're only going to be overcharged twice. Just keep the tank and use it up while you look for your own tank. When you find one set it up and have it filled. When the other tank is empty have them pick it up, hook up your tank, and you're all set.

Sarah K. · #7 04/08/10, 07:22 PM

Good point about using up as much propane as possible first. Here's a stupid question- how do we tell how much is in our tank? The company always came out according to their schedule and filled it (I know NOW that's not the way to do it!)

So there are no safety concerns regarding the maintenance of the tank?

Thanks,
Sarah

nebula5 · #8 04/08/10, 07:27 PM

I agree with Tyusclan, use up what you have in the tank, just make sure no more is delivered. Our experience with switching propane companies about 10 years ago: (I am in NY state also) Found out propane company which starts with S had been overcharging us for years. I canceled service, told them to pick up their tank (which still contained 50 gallons of propane.) Made arrangements with new vendor to set up tank and hook up service. The new company disconnected old tank.

Old company took 6 MONTHS to pick up old tank. Instead of a check for the remaining propane, I received a statement which charged me $75 for picking up old tank, and pumping propane. Of course this was deducted from the amount owed me. So glad to be rid of that company that starts with the letter S.

Before you buy a tank, check with the local propane companies and see if they will deliver to a tank you own. In my area, it's customary for the companies to provide a tank for you (mine does not charge rental fees or delivery charges.) Don't know why this is different from heating oil, which you can shop around for each fill up.

arabian knight · #9 04/08/10, 07:31 PM

Quote:

Originally Posted by Sarah K.

Good point about using up as much propane as possible first. Here's a stupid question- how do we tell how much is in our tank?
So there are no safety concerns regarding the maintenance of the tank?

Thanks,
Sarah

Look at the gauge it is under the hooded cover, they fill it about to 90% So run it down to 20% or less.
Not really just keeping a good paid on it is about it. Mine has been in now for over 15 years and I have not touched it, although a CO_OP owns it but they have not down anything to it. They last for years and years and years.

quietstar · #10 04/08/10, 08:46 PM

Life generally works out better, the more independent I can be from lease tanks and limits on who I can buy from. Feedback from a lot of folks indicate that having 1,000 gal. storage tanks can be worked for a respectable price break.

Bottom line, running a price comparison between Propane and Natural gas markets sure look like some Propane price fixing is going on in some areas...Glen

Old Vet · #11 04/08/10, 10:04 PM

Call all the propane companies for about 50 miles and compare the price and whether they will fill an owner tank and get the price of a tank rental also. Usually the price for your tank if owned will be less than one that is rented. Once you rent a tank you are obligated to buy from one company. Use the propane down to below 20% before you call them and change companies it will cost nothing and when you either buy a tank or rent one have a propane company install it and check the lines to make sure they are gas tight. That way you will know more than most people as to who has a deal.

Ghost321 · #12 04/09/10, 12:09 AM

You may also be able to purchase a set amount of propane for the year, say 1000 gal. at a certain price that is purchased ahead of time. Around here several companies do this in Spring, some allow a payment plan over several months. You call for delivery when you are ready for more propane. If there is any left at the end of the contract you are able to roll it over to the next year, if you run out then you pay standard rate for that time of year with Winter being the highest rate. I am in the Ozarks of Arkansas.

Joshie · #13 04/09/10, 12:14 AM

Are you sure you're being overcharged? Strange that you had to sign a contract. We didn't. We had it filled in December so had to pay December rates. Around here, if you fill in the late summer you can lock in the lower summer rate and they'll top it off when needed. Much cheaper way to do it.

Prices vary. Our winter rate was like $2.25. Because it's so expensive to heat with propane right now (and we had a cluncker furnace) we got a new furnace and heat pump. You can set it to use more electricity if it's cheaper to heat with electricity or you can set it to use propane quicker so that it uses more propane. Hubby is in love with it.

nebula5 · #14 04/09/10, 06:56 AM

Propane prices around the country vary widely. In NY, $2.25 a gallon would be a real bargain. I pay over $3.00 a gallon; because I just use propane for hot water I pay a higher rate. I have heard of others in NY who are being charges upwards of $4. a gallon.

ronbre · #15 04/09/10, 07:12 AM

yeah the reason we get such a good price is cause of the covenant, ours has a guage under the cover we are watching really good to try to get the % way down before we change over..as 20 % is still 100 gallonds of propane !

they only fill here to 80 %

the new company promised to do a changeover for free if we change to them..but that was a year ago when the new covenant was arranged..we heat with wood so we still aren't out of propane..but getting close now..going on over 2 years on same fill

fantasymaker · #16 04/09/10, 08:08 AM

Why is everyone recomending 20%? In summer when you are useing very little and its stuff like stove and water heater Id use it right down to empty.
There is a conideration when reconnecting that you restart the appliances when the gas is turned on.

o&itw · #17 04/09/10, 08:37 AM

Quote:

Originally Posted by fantasymaker

Why is everyone recomending 20%? In summer when you are useing very little and its stuff like stove and water heater Id use it right down to empty.
There is a conideration when reconnecting that you restart the appliances when the gas is turned on.

If you run it right down to empty, they will not fill it due to liability issues, unless you are there and the can inspect all the appliances.... one may get charged extra for this... that is why the "20%".

Of course if you are switching tanks, that will have to be done anyway, so its OK to use it down farther.

#18 04/09/10, 12:06 PM

I'd use it till it ran out or vent it into the air before I'd pay them to pump it out . If I was changing companies & getting a different tank I'd just use it until it ran out . If you pay them to pump it out they are getting paid for the same gas 3 times . Once when you bought it , again when they pump it out & again when they sell it to someone else .

suitcase_sally · #19 04/09/10, 01:34 PM

Quote:

Originally Posted by o&itw

If you run it right down to empty, they will not fill it due to liability issues, unless you are there and the can inspect all the appliances.... one may get charged extra for this... that is why the "20%".

Of course if you are switching tanks, that will have to be done anyway, so its OK to use it down farther.

ditto. Remember there will be a little water/sludge in the bottom of the tank, so letting it go to 0% may not be wise as far as your lines and appliances go.

trbizwiz · #20 04/09/10, 02:40 PM

Quote:

Originally Posted by GrammasCabin

charges $1.49 per gallon

$1.49 a gallon!!! You don't know how lucky you are! I have to pay $3.56 a gallon and a $90 yearly tank rental fee (100 gal tank). The propane company here won't deliver to a personal tank, if you have your own tank you have to take it to them to be filled - which makes it impossible except for 5 & 10 gallon tanks which forces us to rent their tanks. Jerks my chain to be a captive audience (only in Alaska!).

most propane companies have a 200 gallon minimum. If you buy a larger tank you wont have this issue. 500 is a very typical size tank. I personally dont want a tank in the yard so I bought a 1000 gallon underground tank. They cost 2 times as much, but then all you have is the lid sticking out. Mine was $2500 installed, and I can buy from whom ever has the best price at the time. Sometimes buying 800 gallons at a time gives you a little bargaining power. Cash over credit saves a little too if you ask. Remember a propane tank can only be filled to 75 to 80% capacity. That is why I can only buy 800 gal instead of 1000.