With last year’s propane crises fresh in their memory, people at every link of the supply chain are working to make sure it doesn’t happen again.
“We’ve got all the right steps in place,” said Stephanie Marquis, Wisconsin Department of Administration spokeswoman. “Now a lot of it is going to be weather-dependent.”
Some of the factors that caused propane prices to spike at more than $5 per gallon in late January and early February may be back in play again this fall.
“We worry about another big crop dry like last year,” said Joe Stariha, co-president and chief financial officer for Como Oil and Propane. A late, wet corn crop led to an increase in demand for propane to dry it last fall. Then extreme cold settled into the Midwest, causing an unprecedented need for fuel and sending prices soaring.
“What happened last time had never happened before,” said Wisconsin Propane Gas Association Managing Director Brandon Schloz. “There was no playbook.”
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This year, many are taking those lessons to heart.
Folks who need energy assistance to pay for propane have been given the go-ahead to file for help early this year, thanks to a state initiative. While most energy assistance clients must wait until Oct. 1, those who use propane can sign up now. The amounts will be locked in now and awarded later, Marquis said.
Gov. Scott Walker has met with rail lines, industry leaders, suppliers and producers to ensure a more constant supply of propane, Scholz said, and many Wisconsin propane suppliers are increasing storage capacity and allotment.
