March 1, 2014

 

Dear Customer,

    U.S. Sen. Tammy Baldwin (D-Wis.) has called upon President Obama to moderate exports of propane and other fuels; authority she maintains is granted him under the Energy Policy and Conservation Act of 1975.” In light of the propane shortage crisis in the Midwest and Northeast, I urge you to take action immediately to moderate exports to ensure American consumers have the fuel they need to keep warm through this winter, “first term senator wrote in a Jan. 25 letter to the president. “Due to the propane supply shortage Wisconsinites are facing the devastating prospects of being unable to heat their homes in the coldest part of an already harsh winter,” she wrote. Acknowledging that many factors were contributing to the propane supply situation, Baldwin underscored that the rate of propane exports had more than doubled from a year ago, while “at the same time, domestic propane stocks were low going into this heating season and have been depleted substantially.”

 

   U.S. Rep Cheri Bustos (D-ILL) has joined a bi-partisan coalition of other members of Congress from the mid-west in calling for congressional hearing on this winters propane logistics and supply crisis. The first –term representative noted the propane prices have risen dramatically in the last month, causing significant hardship for families that use propane to heat their homes. “As you may know, households and businesses across the Midwest have seen significant spikes in the price of propane fuels during the severe winter cold.” The members of Congress pointed out that several factors are potentially contributing to price increases and supply shortages, include unseasonably cold and wet weather, supply disruptions, and an increase in exports. “This is the problem that is not going to go away. A formal hearing to fully investigate the role and resources available to moderate supply and relieve skyrocketing prices during the coldest time of the year is vitally important to thoughtfully considering viable long-term solutions to meet our energy needs”, they wrote. Many of these above listed factors has some minor bearing on McMinnville Gas price increases and supply struggles however do to our large rail storage over 200,000 gallons of fuel storage we were able to push through the extreme cold weather and increase in demand.

 

   Temperatures east of the Rocky Mountains have been significantly colder this winter compared with this same period both last winter  and the previous 10-year average putting upward pressure on consumption and prices of fuel used for space heaters says the EI Administration (EIA) in its February “short-term Energy Outlook.” The cold weather has had the greatest effect on propane prices, particularly for consumers in the Midwest, adds EIA. Cold temperatures have tighten supplies in the East and Midwest regions that were already low heading into the winter heating season. These above factors had the same effect with supply and prices for the Pacific Northwest and our delivery area in the North Willamette Valley.

 

   McMinnville Gas will be contacting customers who had storage difficulties this past winter and will attempt to make improvements concerning this issue. Prices were higher because of the above listed factors and are receding as temperatures are higher and supply has returned to normal. Any improvements in your heating systems should be made prior to next winter while it is in your memory. Call our salesman Ryan Buller and he will give you a bid on a better heater or hot water heater to create comfort in your home. Thank for your business this past month.

 

Cordially,

John J Buller and Sons, Owners