In 2009, the governor of New Mexico signed a bill that directed the Public Regulation Commission to develop rules and regulations for the propane industry. This bill was widely supported by the Legislature because up until then, there had been no consumer oversight and protection from unscrupulous propane dealers.
The result has been that pricing for purchase of propane has varied by as much as a dollar a gallon; nothing has been in place for emergency deliveries; dealers can raise their prices during storms; and the propane industry does not have to honor the winter moratorium that protects disabled and senior citizens from having their fuel discontinued during the winter months. All utilities have oversight that prevents price gouging and other abuses of consumers, but the propane industry is not considered a a utility.
Propane customers may be charged higher prices if they only purchase 100 gallons of propane at a time. This can be up to $100 on a 100-gallon fill. They may also be charged more if they only fill their tanks a couple of times a year. If they are renting their tanks from their dealers, that price is also variable. Some dealers charge more than others.
To switch companies, consumers will need a safety inspection that can result in necessary upgrades to their systems. They will have to pay for those upgrades if they rent their tanks. The good news is that the price may be negotiable.
Propane customers need to call their dealers and ask how much they are paying per gallon and why. They also should check to see if there is a better price to be had with their current dealer and what other dealers in the area are charging. Some dealers have flat rates; some don't.
The Public Regulation Commission has established a database of complaints that it will use to make rules and regulations. Customers who feel they are not being treated fairly by a dealer for any reason should contact Mona Varela, director of the Consumer Relations Division, Public Regulation Commission at 827-4661. Anyone who would like to comment on this issue is also encouraged to call.
Starting this month, interested consumers, consumer protection groups, the PRC and members of the propane industry will resume work on this issue. More legislation will probably be needed to correct this problem. Legislators need to know how we feel.
Betty Haagenstad is a rural New Mexico propane customer who is working for more oversight of the propane industry. She lives in Ojo Caliente.
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