Lock in propane contracts now to ensure best deal, adequate supplies for home heating season

News media contact: Matt Helms 517-284-8300  

Customer Assistance: 800-292-9555  

For many Michiganders, thoughts of propane during the summer months are limited to firing up the grill or cooking over a camp stove. But June is also when Michiganders who use propane for home heating should start locking in contracts for the fuel for cold-weather season.

The Michigan Public Service Commission urges propane customers to shop around now for the best deals and to research options, ask questions about contracts and get terms in writing. Those who wait until later in the year risk surprise higher costs.

Here’s what Michigan propane customers should know before shopping for propane:

• Propane suppliers offer budget plans and pre-buy and fixed-price plans that can save consumers money compared to market prices later in the season. Make sure you know the size of your propane tank and your average propane use – this information can help customers avoid not buying enough or buying too much. In addition, customers should know that prices may increase after the prepaid allotment is used up.
• Get answers to important questions you may have before you sign a contract. Some of those questions might include what service, budget and payment options are available, how prices are determined, what fees may be charged, how often tanks will be refilled, and how much advance time is needed for delivery outside a normal schedule.
• Make sure you understand potential fees, including fees for installation, service, pickup or disconnection, lease or equipment rental, and minimum usage requirements. Ask for details before you sign a contract because these additional fees may increase out-of-pocket costs.
• Calculate whether it’s more economical to rent or lease a tank from a propane provider rather than owning a tank. Renting or leasing a tank means safety and maintenance is the responsibility of the provider. Owning a tank can save money but leaves the responsibility for upkeep on the customer.

While propane prices aren’t regulated in Michigan, the MPSC monitors the propane market to identify irregularities that could lead to price or supply disruptions for approximately 320,000 Michigan households that use propane to heat their homes. The MPSC each year publishes statewide average residential prices weekly during the heating season, which starts Oct. 1.

Michiganders use more propane in the residential sector than any other state, and propane use is highest in rural areas. Propane is the primary heating fuel for 18% of the Upper Peninsula and nearly 24% of some northern Lower Peninsula counties. Propane is used for home heating in 8% of homes statewide.

Using energy efficiently can help reduce winter energy costs. Propane customers can find valuable energy saver tips through the U.S. Department of Energy.

Financial assistance and other resources are available for households struggling to pay energy costs. One place to start is the MPSC’s webpage for customer utility assistance at www.michigan.gov/mpsc/gethelp. You also may contact Michigan 211 by calling 211 or going to www.mi211.org. Michigan 211 is a free, confidential service that connects Michiganders with a range of assistance programs and services including help with food, housing, transportation and home energy bills. More information on energy assistance is available through the MPSC’s tip sheet on applying for energy assistance.

For additional tips and consumer information, check out the MPSC’s propane consumer tip sheet.

For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter or LinkedIn.

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