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Missourinet

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Attorney General’s office finds propane price spikes caused by market factors

June 10, 2014 By Mike Lear

The Attorney General’s Office says several factors drove up the cost of propane for Missouri customers last winter and says they could continue in future winters, but price gouging was not one of them.

In a report released today Attorney General Chris Koster says low propane supplies from November through the winter were mixed with high demand due to a record corn crop that was wetter and came in later than normal, and an unusually cold and early winter. Propane exports also set records and cut into domestic supplies, and changes in recent years to the path propane must take to the Midwest make it hard to quickly redirect supplies when demand spikes.

Koster says his office talked to propane industry representatives, government entities and consumers and reviewed pricing and profit data from retailers looking for evidence of gouging. It also investigated about 250 complaints from Missouri consumers regarding propane prices and interviewed 80 consumers. It has recovered more than $3,000 for Missouri propane consumers and continues mediation on other complaints.

“While our investigation concludes that market forces drove higher propane prices, we are still actively responding to complaints from Missouri propane consumers on a case-by-case basis,” says Koster. “My office will continue to examine each circumstance to determine if propane suppliers violated Missouri consumer protection laws during this period of price instability.”

The report cautions that the production, infrastructure and export patterns to which it attributes the price spikes of the winter of 2013/14 could continue into future winters. It offers several suggestions to consumers to protect against future price instability.

Those are:

  • Consider a pre-purchase fixed price or maximum price plan offered by propane dealers during warmer months.
  • Consider the supplier’s track record and reputation, and shop around. Some suppliers have a greater ability to access inventory during times of peak demand.
  • Research whether it makes sense to own or lease a tank. Consumers who own their own propane tank often have greater flexibility in choosing a supplier, while those who lease must often only purchase propane from the tank owner.

Koster’s office conducted the investigation at the request of Senator Mike Parson (R-Bolivar) and Representative Jay Houghton (R-Martinsburg).  Consumers reported spikes in propane prices from less than $2.00 per gallon to more than $5.00 per gallon from December 2013 to January 2014.

Read the full report here

Filed Under: Agriculture, News Tagged With: Chris Koster, corn, Mike Parson, propane

Missouri Attorney General investigating propane price hikes

January 27, 2014 By Mike Lear

The Attorney General’s Office has announced it will investigate the cause of the rise in the price of propane gas.

Attorney General Chris Koster acknowledges that he received a request from Senator Mike Parson (R-Bolivar) to conduct an investigation, and says forty consumers have filed complaints with the Attorney General’s Consumer Protection Division about increases.

Consumers say the price of propane gas has gone from about $1.91 in December to about $5.00 recently.

In a statement Koster says, “Missourians are justifiably concerned about the dramatic increase in propane prices, affecting their ability to heat their homes and care for Missouri-based livestock,” Koster said. “I want to thank Senator Mike Parson and many others who have highlighted this important issue and brought these complaints to our office. We are currently investigating all complaints, and working with businesses and agencies in 9 other states across the Midwest to determine the cause of these price increases.”

On Friday, consumer investigators with the Attorney General’s Office took part in a multi-state conference call with representatives of the propane gas industry. Distributors and analysts say a sharp increase in the export of propane and higher winter consumption have created a shortfall in supplies of domestic propane.

Filed Under: News, Politics / Govt Tagged With: Chris Koster, Mike Parson, Missouri Attorney General, propane

State Fairgrounds to get $2.2M for storm water system upgrades

October 1, 2013 By Mike Lear

The State Fairgrounds in Sedalia will get $2.2-million dollars in infrastructure upgrades to its storm water management system.

Governor Jay Nixon (at podium) announces $2.2-million for infrastructure improvements at the State Fairgrounds, joined by Agriculture Director Jon Hagler (left), Senator Mike Parson (right) and members of the Missouri National Guard.

Governor Jay Nixon (at podium) announces $2.2-million for infrastructure improvements at the State Fairgrounds, joined by Agriculture Director Jon Hagler (left), Senator Mike Parson (right) and members of the Missouri National Guard.

The money will go to fix leaks in the system and improve drainage. State Fair Director Mark Wolfe says rainwater was getting into the Fair’s sanitary system and that was adding to a greater problem for the City of Sedalia, of water levels exceeding what its treatment system could handle.

“We were certainly a major contributor (to that problem) because of the numbers of campsites and the fact that we have some of our major lines out here that are getting old and decayed and were showing signs of cracking and things like that, that was allowing that (additional water) in there.”

Governor Jay Nixon says the work has to be done before other improvements to the Grounds can be made.

“These infrastructure improvements are vital to ensuring that Missouri families can continue celebrating their traditions and making great members of the State Fair well into the future. If we can get this stuff done underground, they lay the structure for us for enhancing the camping experience here, enhancing other facilities around this area, but you’ve got to start from the ground up.”

State Senator Mike Parson (R-Bolivar) says the Fairgrounds must be made to last.

“I truly believe that this is the heart and soul of Missouri right here, right here in Sedalia, Missouri … agriculture, this is where we came from … and for the people that built all of this 100 years ago, a lot of these buildings, it’s our job to make sure we keep that infrastructure in place so for the future generations, for our kids and our grandkids, to be able to enjoy what we’ve had the opportunity to.”

The money comes from the state Office of Administration. Wolfe expects the upgrade to be completed in time for the 2014 State Fair run, August 7-17, and work will continue while other events take place on the Grounds.

Find out more about the Missouri State Fair at its website.

Filed Under: Agriculture, News Tagged With: Jay Nixon, Mike Parson, Missouri State Fair, Sedalia



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