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Developments regarding propane supply shortage

Friday, February 7, 2014

Dear Neighbor,

 

A widespread propane supply shortage is causing problems for many Minnesotans, driving up heating prices for many and causing concern some may run out of the fuel.

 

Initial responses from the state include declaring a state of emergency, increasing energy assistance funding and expanding assistance eligibility. A Department of Commerce hotline is now available to provide information regarding assistance. Also, Commerce Commissioner Mike Rothman issued a statement indicating he will “take all necessary steps to ensure that Minnesota consumers are not subject to unlawful propane hikes or market manipulation.” The department will review all complaints from Minnesotans and act accordingly.

 

Here is some information regarding assistance that is available:

 

  • How to Apply for Heating Assistance

Qualifying households must apply for assistance at the local service provider in their area. Minnesota has 32 local service providers statewide. A list of local service providers and guidance for how to apply for assistance is available on the Minnesota Department of Commerce website or by calling (800) 657-3710.  Eligibility guidelines can be found here.

  • Propane Shortage Hotline

Last week, the State of Minnesota established a toll-free hotline that Minnesotans affected by the propane shortage can use to ask questions or seek assistance in this time of emergency. As of this morning, that hotline has received over 1,750 calls from Minnesota citizens in need of assistance to find and afford the propane needed to heat their homes, businesses, and farms. Minnesotans with questions about the current propane situation or who are in danger of running out of heating fuel should call (800) 657-3504 in Greater Minnesota. The hotline operates daily between 9:00 a.m. and 4:30 p.m.

 

These resources can help people in the short-term – as would warmer temps – but legislative proposals are under consideration to help achieve long-term stability. Bills could be written during the upcoming session to expand assistance eligibility, ease railroad congestion, help reverse a trend of ever-increasing exportation of propane and more.

 

This propane supply shortage we face appears to be caused by a combination of factors. Canadian pipeline work has limited flow to Minnesota, an issue expected to linger with the reversal of the Cochin Line that runs propane to western Minnesota. Also, a large corn harvest and wet crops meant a large amount of propane was used to run dryers last fall. Extended cold in the Midwest this winter is the clincher.

 

Reports indicate around 90 percent of the propane consumed in Minnesota is imported through pipeline systems and around three-fourths of that comes from Canada. This external reliance is something else we need to examine.

 

For now, let’s hope for a warmer finish to winter so we can spare citizens who rely on propane to warm their homes, provide heat for livestock and more.

 

Please share this information with any people you think could benefit.

 

Sincerely,

Mark

 

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