Wisconsin’s Propane Shortage
Written by: Theo Dubiel
During this winter, many houses in Wisconsin were left in the cold, as heating bills escalated and temperatures outside plummeted. Propane, the gas responsible for heating approximately 250,000 homes in the Wisconsin region, is in such a short supply that Scott Walker has declared a state of emergency. Regardless though on how scarce this commodity gets, demand for the home heating gas is still in demand,
causing prices to sky rocket. Since January 13, Prices for propane have almost tripled in some areas, from $1.87 per gallon up to $4.86. This step up in price is causing further problems for families and small businesses that now either need to lower their thermostats or pay the heavily raised price for heat.
The severe drop in the supply of propane has been attributed to several sources. Besides heating houses, propane is also used in industrial grain dryers and livestock facilities for heat. Beyond that, some of the loss in propane can be attributed to the fact that a pipeline was downed from the end of November and not repaired until the middle of December. In addition, due to propane’s previous abundance in the area, exportation of the product to other countries and areas has further put a strain on the local supply. All these factors combined have now resulted in the shortage which the mid-west must handle during these cold winter months. The small supply that still lingers in the area is still being moved from house to house, but is now being rationed out by dealers. Some dealers are even limiting their deliveries to 100 gallons per customer in an attempt to service more people. Unfortunately, a family can easily burn through 100 gallons of propane within a couple weeks in some circumstances, depending mainly on how warm they keep their house and how good their insulation is. Furthermore, many people who pre-purchased gas are not receiving their guaranteed amounts of propane from their chosen supplier.
These individuals now have to pay for premium gas elsewhere, while still having money tied up at their original dealer. Contracts are also being put on the back burner for some clients. For example one small business’s contract for propane is no longer being honored. Originally the deal was set at $1.19 a gallon, but now the supplier wants $5.29, which the business owner will refuse to pay at such a high price.
Government intervention is already taking place in several different forms. State Officials are currently looking into propane companies to ensure contracts are being honored, while funds such as the Keep Wisconsin Warm/Cool Fund are expanding their reach to ensure no one is left in the cold. Recently governors of several states have also signed letters to the White house, urging the president to increase current supplies, and to create more stable supply lines for the future. Even with the current relief efforts though, the revival of the propane supply will be a somewhat slow process, and with winter showing no signs of stopping, one begins to question if it will be enough to keep homes across the Midwest warm.
Work Cited
http://www.jsonline.com/business/propane-dealer-in-northeastern-wisconsin-stopsmaking-
deliveries-on-prepaid-contracts-b99195976z1-242968381.html
http://news.nationalgeographic.com/news/energy/2014/01/140129-us-propaneshortages-
leave-homeowners-in-the-cold/
http://whbl.com/news/articles/2014/feb/04/gov-scott-walker-signs-letter-to-presidentobama-
looking-for-propane-shortage-help/
http://www.youtube.com/watch?v=z6YECnMwnKc
Images:
http://media.jrn.com/images/185*484/PROPANE01G.jpg
http://images.nationalgeographic.com/wpf/media-live/photos/000/759/cache/wisconsinheating-
propane-winter_75976_990x742.jpg
During this winter, many houses in Wisconsin were left in the cold, as heating bills escalated and temperatures outside plummeted. Propane, the gas responsible for heating approximately 250,000 homes in the Wisconsin region, is in such a short supply that Scott Walker has declared a state of emergency. Regardless though on how scarce this commodity gets, demand for the home heating gas is still in demand,
causing prices to sky rocket. Since January 13, Prices for propane have almost tripled in some areas, from $1.87 per gallon up to $4.86. This step up in price is causing further problems for families and small businesses that now either need to lower their thermostats or pay the heavily raised price for heat.
The severe drop in the supply of propane has been attributed to several sources. Besides heating houses, propane is also used in industrial grain dryers and livestock facilities for heat. Beyond that, some of the loss in propane can be attributed to the fact that a pipeline was downed from the end of November and not repaired until the middle of December. In addition, due to propane’s previous abundance in the area, exportation of the product to other countries and areas has further put a strain on the local supply. All these factors combined have now resulted in the shortage which the mid-west must handle during these cold winter months. The small supply that still lingers in the area is still being moved from house to house, but is now being rationed out by dealers. Some dealers are even limiting their deliveries to 100 gallons per customer in an attempt to service more people. Unfortunately, a family can easily burn through 100 gallons of propane within a couple weeks in some circumstances, depending mainly on how warm they keep their house and how good their insulation is. Furthermore, many people who pre-purchased gas are not receiving their guaranteed amounts of propane from their chosen supplier.
These individuals now have to pay for premium gas elsewhere, while still having money tied up at their original dealer. Contracts are also being put on the back burner for some clients. For example one small business’s contract for propane is no longer being honored. Originally the deal was set at $1.19 a gallon, but now the supplier wants $5.29, which the business owner will refuse to pay at such a high price.
Government intervention is already taking place in several different forms. State Officials are currently looking into propane companies to ensure contracts are being honored, while funds such as the Keep Wisconsin Warm/Cool Fund are expanding their reach to ensure no one is left in the cold. Recently governors of several states have also signed letters to the White house, urging the president to increase current supplies, and to create more stable supply lines for the future. Even with the current relief efforts though, the revival of the propane supply will be a somewhat slow process, and with winter showing no signs of stopping, one begins to question if it will be enough to keep homes across the Midwest warm.
Work Cited
http://www.jsonline.com/business/propane-dealer-in-northeastern-wisconsin-stopsmaking-
deliveries-on-prepaid-contracts-b99195976z1-242968381.html
http://news.nationalgeographic.com/news/energy/2014/01/140129-us-propaneshortages-
leave-homeowners-in-the-cold/
http://whbl.com/news/articles/2014/feb/04/gov-scott-walker-signs-letter-to-presidentobama-
looking-for-propane-shortage-help/
http://www.youtube.com/watch?v=z6YECnMwnKc
Images:
http://media.jrn.com/images/185*484/PROPANE01G.jpg
http://images.nationalgeographic.com/wpf/media-live/photos/000/759/cache/wisconsinheating-
propane-winter_75976_990x742.jpg
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