Setting-Up Propane Service Agreement

When a homeowner is interviewing multiple local propane service providers to secure service, local propane suppliers may offer a wide range of options/plans to set-up service. One of the areas that homeowners should carefully consider is the length of the initial service agreement and any automatic extensions that follow the initial propane service period. Other variations of propane service agreements may include an initial period of six-months or twelve-months that automatically converts to renewable service periods of one-month or service periods of three-months or six-months, etc.

Some propane suppliers may offer incentives to a homeowner including free installation or perhaps some free propane (50 gallons, for example) in exchange for a longer initial service period. This may seem attractive to a homeowner at first glance. HOWEVER, it is important to carefully consider the propane price per gallon that will apply during the initial propane service period - and any extensions. The "free propane tank" installation may suddenly become a very costly installation if the propane price per gallon climbs rapidly during the initial propane service period. Be sure to question your a prospective supplier extensively to ensure that you protect yourself from overpaying to propane during the initial service period.

When starting service, as a general rule, it makes sense to talk to your supplier about fixing the propane price per gallon or requesting a maximum propane price per gallon that the propane price will not exceed when your propane service extends beyond month-to-month service. While setting up propane service, it is important to make sure that you do not become a victim of propane price gouging.

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