Propane group gets a new choice as Paraco undercuts Suburban price.  Halcott Propane coop can now buy from either company.  Arrange the swap ahead of time and try to burn off most of your existing supply to keep restocking charges down but change over safely before winter and frozen pipe risks.

My negotiations with propane providers got very complicated this year when a competing company (Paraco) came in with a fixed price bid that is ten cents a gallon cheaper than what Suburban is presently charging.  Paraco’s proposal also does not add on the delivery and safety charges which Suburban imposes.  Because changing over to Paraco may be complicated for some of the Halcott group’s participants, we are going to agree to both Paraco and Suburban’s proposals, giving our present participants the choice of what company to buy their gas from, and also making it possible to buy gas at good prices before any tank change overs.

Suburban’s added charges for “Safety” and “Transport” totalled $22.28 for each delivery I received.  Those charges may vary.  I have tried to get Suburban to drop them as well as to state contractually what they will be but they have not done so.  They say those charges vary but are in every customer’s service agreement and can be verified by calling Suburban.  Good luck to you on that.

Suburban’s new price is $1.799 cents a gallon, equivalent to last year’s price and includes the delivery-related charges.

Paraco’s proposed price is $1.70 per gallon with no additional charges for delivery. Paraco will provide a new tank and swap out your Suburban tanks with no charge.

Suburban’s “restocking fee” is the sticky point in changing companies.  You should burn off as much gas as you can before setting up the change-over but do not risk winter freeze-ups in the process.  Wait till next year if need be. Suburban’s restocking fee will be quoted from the regional office based on your Customer Service Agreement. The charge can be $1 per gallon or more. Suburban’s phone number is 800-776-7263.

To get set up with Paraco, call or email Edward (goes by Ned) Howard, ehoward@paracogas.com, 845-745-2159.

Please cc me on all emails so I can oversee this admittedly complicated process, and also please inform me by email of the per-gallon rate you are billed by either company. For those of you who will understandably want to take advantage of Paraco’s low price, plan ahead. You will be able to change propane providers at any time, but should of course be very careful not to run out of gas, especially in the winter when your pipes can freeze. The two-company option may remain our way of doing business in coming years as well.  This is uncharted territory for us. I’m reluctant to divide the buying group in any way but hopefully two options are better than one. We have a lot of buying power with 92 Halcott households buying 38,500 gallons a year. Making that buying power stronger, Paraco offers a bonus of $50 for all full-heat customer referrals and $25 for non-full-heat customers. Suburban offers 35 free gallons for new customer referrals.  Or about $62 in credit towards gas purchases.

In addition to emailing me for review what rates you are charged, please also copy

Please find the updated supervisors report here for the meeting to be held on Monday, June 17.