April Energy News

Apr 05, 2022


Propane Delivery

April 2022.

If you read last month’s newsletter, you’ll recall that I retired from the Army Reserve. This month will be my last newsletter as I have decided to retire from Premier Cooperative to follow my dream and open a new online business. I will be offering items for sale such as cat swimwear, turkey foot back scratchers and chicken goggles. April fools! You’re stuck with me for a few more years. 

We’ve seen a lot of volatility in the energy markets since the war in Ukraine started. As I’m writing this newsletter crude oil is off $8 per barrel on the day. I can’t even begin to speculate on what crude oil prices will be by the time you read this. Or what the price will be in one hour, for that matter. What I do know is that while the Ukraine vs. Russia war is going on and China continues its lockdowns due to Covid, the volatility will continue into the near future unabated. We continue to offer diesel contracts to our farm customers. If you see a dip in the market and you want to get something locked in, please call your local Premier Cooperative energy office. 

Now that the frost is leaving the ground, our propane team is preparing for this season’s tank installations. With the high price of steel and the constricted supply of propane related parts, there may be delays in getting new tanks or parts to our customers. If you know you have a propane project coming up, give us a call early so that we can get you a place in line for the tank or parts that you will need. 

Let’s talk a little bit about propane regulators. Regulators control the amount of propane that flows into your propane fueled appliances and equipment. On a normal home installation, there is a regulator on the tank and one on the house. The manufacturer recommended life of a propane regulator is 25 years. Like any mechanical object, parts inside of the regulator will wear out. Of main concern is the fabric diaphragm. They get brittle with age and if that ruptures, propane gas could potentially rush out of the vent and cause a fire or explosion if it ignites. If we tell you your regulators need to be replaced please, for the sake of yourself and your family, let us replace them. It’s an inexpensive way to keep your family safe. 

I don’t need to tell you that we are seeing some of the highest gasoline prices ever. There is an alternative to gasoline, which is propane autogas. Unlike gasoline, you are able to lock in your price for a year just like you can the propane in your home. There are incentives available to cover quite a bit of the conversion costs and with the Alternative Fuels Tax Rebate, you can get back a little over the cost of your road tax on propane. Customers who locked in their propane autogas are paying $1.599 per gallon (after the tax rebate). On my personal truck, I have saved about $12,000 on fuel costs.  

My engine starts on gasoline and after it gets warmed up it switches automatically to propane. If you are going on a long trip and you run out of propane, it automatically switches back to gasoline. If refueling on propane is difficult when going on long trips, you can run on gasoline until you get back or find a reputable propane autogas dealer along your route. We have public refuelers in Mt. Horeb, Dodgeville, Viroqua and Bloomington. If you have a long commute to work and you live near one of these refueling sites, give me a call and we’ll see if it makes sense for you. 

Since we’re on the propane autogas topic, did you know there are hundreds of buses running on propane autogas in Wisconsin? We are teaming up with Roush Cleantech and Wisconsin Bus Sales for a Propane Ride and Drive Event. We will be sending out invitations for this event but if you are an owner of a private transportation company, a school district superintendent or budget officer, or a school board member, please call us and we’ll make sure you’re on the list. You’ll be able to learn how other districts have saved money on transportation costs to allocate the money to other areas. Propane autogas is better for the environment and saves money. A real no brainer. 

Thanks for sharing your time with me again and thank you for your business. 

Tim Lease

Division Manager

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