Propane Logistics Remains Critical Issue, Says FUELIowa

Six years ago this month, the U.S. faced an actual propane shortage creating an emergency situation. Record high propane demand coupled with record low propane inventories and record low temperatures created the perfect storm. The Federal Energy Regulatory Commission (FERC) took unprecedented action to prioritize propane pipeline movement during the height of the propane shortage. In the aftermath, the U.S. Senate Committee on Energy and Natural Resources reviewed the activities that led to FERC’s necessary action. Federal agencies (DOE, EIA, DOT, FERC, etc) along with state officials, industry leaders and private companies all pledged to learn from the crisis in an effort to avoid a similar situation.

Iowa's propane marketers today face a similar crisis; however, today’s crisis is not due to a shortage in propane. It is a transportation issue. FUELIowa and state officials believe FERC could help marketers during this propane crisis. The case must be made for an emergency order by FERC to prioritize propane on the pipeline serving Iowa marketers. Not everyone agrees FERC should be petitioned to respond. The last time FERC directed a batch pipeline to prioritize propane, it took three months of information gathering before the order was issued. 

It is extremely important that FUELIowa members share with our office the current and ongoing supply challenges related to propane. Our mission includes consumer protection and fairness in the marketplace for fuel marketers. Your concerns must also be shared with our U.S. Senators and Representatives.

Call the FUELIowa Hotline 1-877-469-2645 or email info@FUELIowa.com to share your propane supply updates for us to elevate to officials.