EZ Pay – Helping to Balance Your Propane Budget

If there is anything a harsher-than-normal winter teaches us, it’s that you don’t want to be caught running low on propane. An extended period of cold weather, combined with supply issues, made the winter of 2013-14 uncomfortable for some propane users, particularly when faced with premium pricing toward the end of the season, and the promise of spring’s warmer days nowhere in sight.

While it might be tempting to just breathe a sigh of relief that warmer weather is finally here, and push concerns about propane supplies (and costs) aside until fall, Lin-Gas would like for you to consider an alternative to riding out another long, cold winter season: our EZ Pay program.

EZ Pay options are just what the name suggests: you set up a contract with Lin-Gas to have propane delivered to your home at set intervals, and you pay each month. We keep track of your usage, and our auto-fill program assures you will have enough propane, even if cold weather lasts longer than anticipated. Your monthly cost can be the same each month, depending on which price protection program you select, eliminating the need to shift funds from another area of your household budget to cover any overage.

Who is eligible?

Current customers of Lin-Gas who have been with our company for one year or longer are eligible to participate in this program. We extend the EZ Pay program to customers with approved credit, and you must have a 500-gallon or larger tank. You must agree to and sign the current Lin-Gas Bulk Propane System Lease and commit to being an auto-fill customer during the term of your payment program.

Three Levels of EZ Pay

  1. EZ Pay Silver

This is our basic level program. Lin-Gas examines your propane usage from June 1 of the previous year to May 31 of the current year, dividing the total gallons used by 11. This figure is then multiplied by a fixed rate to derive your monthly payment amount. You pay this amount each month for 11 months, and in the twelfth month of your contract, we settle up the difference. Depending on your usage for the contract year and fluctuations in price during the year, this could mean an additional cost during the twelfth month or a credit applied to your account. The program then renews for another 12-month period, with pricing based on your current usage and the established rate for the coming year. You must pay your budget amount in full by the fifteenth of each month to remain in good standing with the program.

  1. EZ Pay Gold

The maximum price for Gold level participants will be $2.29 per gallon (cap price) for gallons delivered. This rate will expire May 30, 2015 and the maximum price will change annually. If the price of propane posted by Lin-Gas for our Net B price falls below the cap price, at the time of delivery to you, then your cost for that delivery will reflect the lower price. We will calculate your monthly payment amount based on the previous 12 months of usage and then divide that by 11 to determine your cost. The final month of the contract will be used to settle the difference, if any. To use EZ Pay Gold, you must agree to receive invoices and statements electronically by email, make all payments electronically by credit card or ACH (automatic monthly withdrawal), and pay an annual fee of $10.

  1. EZ Pay Platinum

Participants in our EZ Pay Platinum level program benefit from a fixed rate of $1.99 per gallon, delivered, without change. Again, we calculate your monthly payment based on 12 months usage, divided by 11. The Platinum rate is not subject to pricing fluctuations. You pay the fixed amount each month, and this monthly payment will not change provided that you do not use in excess of 100% of your base period gallons. All usage above 110% will be priced at our Net B rate. Like our Gold program, participants in our Platinum program must agree to receive invoices and statements electronically by email, make all payments electronically by credit card or ACH (automatic monthly withdrawal), and pay an annual fee of $10.

Act Now to Lock in Your Rate

The time to sign up for EZ Pay is now! Calculations based on gallons used for a 12 month period should be made by June 30. We cannot guarantee the pricing set forth above after that date, and our program begins and renews on July 1 each year. More information on our EZ Pay program, including forms to download and complete, will be available online soon.

Don’t let another winter go by without establishing a budgeted amount for your propane usage. EZ Pay assures you’ll have a fixed cost each month and allows you to stay warm and comfortable, no matter how long winter may last.

If you’d like to talk further with a Lin-Gas representative about the program, we’re here to help.

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Should I Buy or Rent a Propane Tank?

For some homeowners, the decision to buy or rent a propane tank can be a difficult one. Depending on your situation, either option could make sense for your needs. It pays to examine the particulars and benefits of both options.

If You Rent:

Many propane companies have basic usage requirements for homes that rent propane tanks. In addition to a minimum annual propane usage, a supplier may require that a certain number of appliances be propane-powered or that the total BTU load is at or above a certain usage level. Because the tank is leased, all propane must be purchased from the company that owns the tank, and buying gas from another company will likely result in lease termination. Also, most tank leases require scheduled delivery, which eliminates the need for the homeowner to monitor the tank level and call for a delivery before the tank is low. Some propane suppliers offer a discount for customers with automatic filling, which can take some of the sting out of comparing propane prices among competitors.

One advantage to tank rental is that the tank is owned by the propane company, meaning they assume responsibility for all maintenance and/or repairs.  However, this applies to the tank itself only; all piping, fittings, parts, and connections are generally the responsibility of the customer to purchase, and may incur a service fee for any repairs needed.

If You Buy:

Purchasing a propane tank eliminates usage requirements and allows the homeowner to purchase his gas from any supplier he chooses. This freedom of choice allows the homeowner to buy propane based on price and at a schedule that suits their needs. That said, most companies will not sell and install a tank without initially filling it with propane; refilling the tank when the time comes will be at the discretion of the owner.

Companies that sell tanks will not sell a tank to an individual or unlicensed entity for installation; only the company selling the tank or a certified, licensed individual can install and connect a tank. The purchase of a tank generally includes all the piping, regulators, parts, and connections affiliated with it, and any warranty, parts, or labor can be negotiated and calculated into the purchase price.  Financing is often available with approved credit and generally structured with a one-year term.

One bonus that comes with buying your tank over renting it: if you decide to sell your home, the next owner isn’t burdened with acquiring a tank because the tank is part of the sale. This can be attractive to potential buyers.

Making the Decision

Ultimately, buying or leasing a tank will depend upon your anticipated usage of the equipment and your budget. It makes sense to sit down and compare the costs of these two options and align them with your household needs. Your propane supplier can answer any questions you may have about usage and will work with you to develop a plan that best fits your requirements.

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Now You’re Cooking With Gas – Propane in the Kitchen

Now that warmer weather has arrived, chances are you’ve caught the smell of burgers on the grill wafting through your neighborhood. One of the positives of the weather in the Midwest is that for the better part of three seasons, we can grill out. Nothing tastes quite as delicious as burgers, hot dogs, and steaks on the grill.

While you may be familiar with the use of propane for grilling, it’s also possible to use propane for cooking year-round. Many households use propane as a primary source for heating and cooking – over 12 million of them in the United States alone. Propane is used to provide the energy needed to operate furnaces, heat water, and fuel appliances such as stoves.

Why Propane?

  • Even heating

The advantages of cooking with propane in the home are many. Gas provides a more even heat across the bottom of pans and within the oven, and gas burners can more easily accommodate pans with dented or warped bottoms. What’s more, gas burners respond instantly with heat, while electric elements require time to heat to the required temperature.

  • Lower cost

Operating costs for cooking with propane are more economical over electricity, as well. On average, cooking with propane is half the cost of cooking with electricity, and pilotless ignitions on propane stoves save up to 40% overall in energy usage by eliminating the need for a constant pilot light.

  • Variety of tools

Propane appliances are available in many different forms, including convection ovens, griddles, grill tops, and deep fryers. Perhaps best of all, propane appliances with non-electronic ignition sources (aka constant pilot lights) are unaffected by power outages, meaning during an extreme weather event, it’s still possible to have a hot meal.

Don’t forget the grill

Still, the most popular use of propane for cooking is the home barbecue grill, which is usually powered by the little white 20-pound propane tanks so readily available at many retail locations. Because of propane’s ease of portability, a propane-powered gas grill can be used at home, while camping, and even for tailgating – anywhere you can take your grill. Cylinder exchange programs can be found virtually everywhere, allowing consumers to swap empty tanks for filled ones as needed.

Perhaps the least-known but most appreciated use of propane for cooking is at the many street festivals in the area. Lin-Gas provides propane for the venerable West Side Nut Club Fall Festival in Evansville, IN every year. If you’ve had an elephant ear or brain sandwich, you’ve enjoyed one of the biggest benefits that propane-powered cooking can offer. We’ll tell you a bit more about our role as a supplier to the Fall Festival in a future blog as the date gets closer. Until then, you’ll have be content with dreaming about that tasty brain sandwich until festival time arrives again.

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Earth Day: A Propane Primer

How much do you know about Earth Day?

The first Earth Day was observed April 22, 1970, as a response to growing concern about the health of the environment and the damages being wrought upon it by industry. US Senator Gaylord Nelson (D-WI) founded Earth Day and as a result launched a growing wave of environmental activism that has become a global movement in the 44 years since that first observance.

The ever-present question raised by today’s Earth Day observances is: how do we continue to progress as a global society while still being mindful of our impact on the environment? The resulting discussion continues to refine global efforts toward environmental improvements.

It may surprise you to learn that propane, a fossil fuel, is on the list of environmentally-friendly fuels.

The term “fossil fuel” has come to harbor some negative associations over the years – sometimes fairly so. However, not all fossil fuels are created equal. Coal, for example, has earned its reputation as a significant environmental pollutant due to the release of sulfur dioxide and carbon dioxide into the air as it burns. Sulfur dioxide is the contributing factor in acid rain, which creates a host of environmental damages, although the coal industry has made great progress in reducing emissions from the use of coal as a fuel in the generation of electricity

The use of propane instead of coal-generated electricity for power results in lower emissions. In fact, the process by which propane is produced, as well as the combustion of propane gas, does not produce significant contaminants to the atmosphere, including those that cause acid rain. Because propane is one of the lightest, simplest hydrocarbons in existence, it burns more cleanly than any other fossil fuel. What’s more, propane gas is nontoxic and does not have a negative impact on soil or water. In fact, because propane does not endanger the environment, the EPA does not regulate the placement of propane tanks, either above or below ground. Of all the fuels available for use worldwide, propane has been approved by the EPA as a clean fuel and is listed in the 1990 Clean Air Act as well as the National Energy Policy Act of 1992.

Earth Day reminds us of the delicate balance we must strike between energy use and the side effects of such consumption. Propane meets or exceeds many of the governmental standards set forth for the protection of the environment. If your home or business relies on propane for cooking, heating, or powering vehicles and equipment, you’re helping to do your part – not just on Earth Day, but every day.

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What is Propane?

The History of Propane

First discovered in 1910 by chemist Walter Snelling, propane is a naturally occurring fossil fuel that is also produced as a by-product of natural gas processing and crude oil refining. Propane is a hydrocarbon consisting of three Carbon atoms and eight Hydrogen atoms (C3H8), and is odorless, colorless, and non-toxic.

As a chemist and explosives expert with the US Bureau of Mines, Snelling is credited with the development of an underwater detonator in 1907, greatly aiding the US in the construction of the Panama Canal. In 1910, after being contacted to investigate vapors coming from the gas tank of a Model T vehicle, Snelling was able to separate the components of the gasoline into liquid and vapor forms. One of these vapor forms was propane, which Snelling was able to compress into a liquid.

The Properties of Propane

As a liquid, propane is 270 times more compact than it is as a gas. In liquid form, propane is more easily transported and stored, and the propane industry has developed numerous methods to ensure its safe transport and use. In the United States, approximately 15 billion gallons of propane are used each year on average.

Propane is also referred to as liquefied petroleum gas, LP-gas, or LPG. Propane leakage does not result in a puddle, but rather as vapor; because the vapor dissipates, propane cannot be ingested like gasoline or alcohol fuels. Due to its naturally odorless, colorless state, a commercial odorant is added to propane to indicate leakage.

How Propane Burns

Very precise conditions must exist for the ignition of propane. In order to ignite, the propane-air mixture must contain between 2.2 and 9.6 percent propane vapor. The ignition source also needs to reach at least 940 degrees Fahrenheit. In contrast, gasoline, with its higher range of flammability, will ignite when the ignition source reaches at 430-500 degrees Fahrenheit.

Used by more than 12.6 million households in the US, propane heats homes, cooks meals, and powers many appliances. Commercially, propane is used in the agricultural, industrial, and transportation sectors to power equipment and provide energy for lighting and heat. Since its discovery over 100 years ago, propane has developed into a reliable energy source that has many applications.

You can find more information on propane in our resources section.

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Could Your Commercial Mowing and Landscaping Business Use an Extra $1000 per Mower?

You’ve seen propane-powered commercial landscape and mowing equipment at the trade shows and wondered if it made sense for your company. Propane fuel has a number of advantages over traditional gasoline-powered equipment, helping your business to run more efficiently.

Commercial landscape and mowing companies using propane-powered equipment report no loss of power over traditionally-fueled engines as well as longer engine life and less maintenance required for their equipment. Employees operating the equipment benefit from a healthier work environment due to the lower emissions produced by a cleaner-burning fuel. What’s more, these lower emissions help your business to comply with government standards as well as provisions set forth in many university contracts. Propane allows you to cut the downtime created by refueling, with an easy switch-out of cylinders at the job site, rather than your crew making trips for gasoline. And because propane is an equipment-specific fuel, pilferage of fuel is greatly reduced.

A number of commercial lawn equipment manufacturers offer propane-powered equipment. These companies include:   Bad Boy, Bob-Cat, Cub Cadet, Dixie Chopper, Exmark, Ferris, Gravely, Husqvarna, Lehr, Scag, Snapper Pro, and Zipper.  In addition, the Propane Research & Education Council is has established the Propane Mower Incentive Program, which provides up to $1000 in incentive dollars for each new qualifying propane-fueled mower purchase, or $500 back for each qualifying mower conversion. There’s no doubt, there has never been a better time to convert to propane for commercial mowing and landscape.

The Lin-Gas alternative fuels specialists will make it easy for you to get started with propane. They will help you set up a fuel program that works for your business so you’re ready to roll off to a job rather than roll into a gas station. We make it easy. Call Lin-Gas today at 800-850-4380 or email us at info@lingas.com.

Lin-gas has the propane and equipment to get you cutting, so get started before the season arrives.

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Propane Powers the 2014 Olympic Torch

Every four years, the world’s attention turns toward the spectacle of the Olympic Games, and the eternal symbol of the Olympic flame burning for the duration of the Games.

Symbolizing Prometheus’ theft of fire from Zeus, the Olympic torch is one of the world’s best-known cultural icons. However, the use of the torch is a relatively new development, having made its debut in the 1928 Summer Games in Amsterdam.

Great spectacle and ceremony mark the journey of the torch from its ceremonial lighting at the ruins of the Temple of Hera in Olympia, Greece to its destination at the Olympic cauldron to open the Games. To light the torch, an actress portraying a high priestess holds an unlit torch above the center of a large, bowl-shaped mirror. The concentration of the sun’s rays at a central point in the mirror generates enough heat to light a flame on the torch. The flame is then passed to the first of the torchbearers in a relay toward the destination of the games, symbolizing peace and brotherhood for the duration of the competition.

Keeping the Olympic flame alit from torch to torch along the relay, however, relies in part on propane.

 

As the design of the torch has evolved over the years, a combination of technology and fuel sources have come together to produce a torch that preserves the Olympic flame along every step of its journey. The current design of the torch utilizes a double burner flame, with the larger, more visible flame outside surrounding a smaller internal flame that acts as a pilot light should the larger flame be blown out. This years’ torch is constructed primarily of aluminum and is weighted and counterbalanced to make it comfortable to carry. The fuel container within the torch handle for the 2014 Sochi Olympic Games contains environmentally-friendly propane, produced in Russia. This fuel container holds enough propane to fuel the torch for approximately 15 minutes.

When Russian hockey great Vladislav Tretyak and pairs skater Idrina Rodnina touched the final torch in the relay to the Olympic cauldron at Sochi, the flame had traveled at the hands of nearly 14,000 torchbearers, spanning 100 days and over 40,000 miles. And thanks to propane, the flame never went out along its journey.

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How the Supply and Distribution of Propane in the U.S. Affects You

The polar vortex we’ve experienced recently brings with it a host of very real dangers, from frozen water pipes to exposure to dangerously frigid temperatures for people and animals alike. For the millions of Americans who heat and cook with propane, the current propane shortage makes the situation even more critical. Let’s take a look at the issue:

How is propane distributed?

Propane is a byproduct of both natural gas processing and crude oil refining. Each of these processes creates a supply of propane that is shipped from the point of production to bulk distribution terminals. From these terminals, propane is transported via pipeline, rail, and tanker truck to retail facilities, where it is distributed in both bulk and cylinder form.

Approximately 90% of the propane supply in the United States is produced domestically, while the remainder of the supply is imported largely from Canada and Mexico. Propane is transported via nearly 56,000 miles of pipeline and distributed at more than 6,000 retail locations.

Because propane is a compressed, flammable gas, there are governmental regulations regarding its transport. Among those regulations are limits on Gross Vehicle Weight (GVW) and amount of time drivers are allowed to be on the road within a 24-hour period. These regulations create safety on the nation’s highways, but they place limits on how swiftly propane can be delivered.

How did the shortage happen?

The shortage is the result of a series of events that, taken individually, would not have as great an impact on the supply. These events include the shutdown of a Midwest pipeline for maintenance, a wet corn harvest season that called for the use of propane to dry the harvested corn, increased competition for pipelines and rail cars from the oil and natural gas industries, and, of course, the extreme cold that has stretched far into the Deep South. All of these factors together have taxed the production and distribution of propane, leading to the current shortage.

Who is affected?

Over 12 million homes in the U.S. rely on propane for heating and cooking. In addition, agricultural operations use propane to maintain proper moisture levels in stored crops, power facilities and equipment, and provide warmth for livestock. Many commercial and industrial businesses as well as municipalities use propane to power fleets and equipment.

What next?

It’s hard to say how long the shortage will last, but some steps are in place to ease the pain a bit. Already the U.S. Department of Transportation has issued emergency orders in 10 Midwestern and 12 Northeastern states, permitting truck drivers to spend more time on the road within a 24-hour period in the quest to get propane supplies delivered further in a shorter amount of time. Many states are asking residents and businesses to conserve by lowering thermostats and limiting usage to only the most essential processes. Propane companies are limiting the size of deliveries and asking customers to only call once their supply reaches a certain limit. The one thing over which no one has control – the weather – will continue to influence usage and available supply for the foreseeable future.

 

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Update on Nationwide Propane Shortage from Lin-Gas

The propane industry is working at all levels to seek relief from the current distribution and infrastructure problems facing propane customers and their fuel providers.

To allow for expedited delivery of propane, an exemption from the federal Hours of Service restrictions which limit the transportation of fuel cargoes has been implemented.   A total of 30 states so far this winter have issued Hours of Service relief.

The propane industry is working to ensure expedited shipments of propane by all modes: pipeline, rail and transport.  Efforts are underway with the U.S. Department of Energy to acknowledge that an emergency exists not only in our area, but throughout the nation, as consumers and businesses in dozens of states are faced with higher energy costs due to persistent cold weather.

Other energy suppliers have experienced high usage as well.  The U.S. Department of Energy reported that cold weather led to record-high natural gas storage withdrawals last week, the largest in the 20-year history of the survey and the second time this year the record has been broken.  In addition, the electricity grid is under strain as well.

To ensure that we are able to provide service in a timely manner, propane customers are asked to arrange for deliveries when their tanks read 30%. Allowing a tank to fall below that level increases the chances of running out.  By law, we must perform a gas line leak check any time the gas flow is interrupted.  This includes all out of gas situations, which can be an extra cost. Give us plenty of time to make a delivery and you can avoid that cost and delay.

BACKGROUND

The challenges in delivering propane for consumers during this prolonged period of cold weather started with a confluence of events beginning in October.

Abundant grain crops were being harvested throughout the Upper Midwest almost simultaneously this fall. Ordinarily, the harvest progresses in stages through the region but in late 2013, the harvests happened at the same time over a wide area. This was a large, wet crop which required massive amounts of propane in order to be dried prior to storage. That demand reduced propane inventories throughout the area. At the same time, infrastructure realignments inhibited the transportation of propane. The Cochin pipeline, which provided 40% of the product used by Minnesota suppliers, was shut down for repairs. This pushed those suppliers further out to load their supply. Canadian imports to the Northeast were also impaired by rail re-routing and other infrastructure impediments. In the Midwest, a new pipeline began moving propane from the central part of the country to new export terminals on the Gulf Coast where propane cargoes started shipping at nearly seven times the previous pace.

As the harvest season demand ended, a massive winter storm rolled across much of the country. Since then, demand for residential, commercial and agricultural heat has soared. The forecast continues for cold weather for much of our area.

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Propane on the Job Site

Pass by any construction site and you’ll see many of the things you’d expect to see – heavy equipment, office trailers, and workers in hard hats. What you may not expect to see is propane in use.

Though most home consumers are familiar with propane as an energy source in the residential setting, it often comes as a surprise to learn that propane is an integral part of most construction and industrial sites. Propane is used to operate equipment, provide warmth for workers, and regulate air temperature and humidity for specific applications.

As a jobsite fuel, propane is one of the most economical choices available for industry. Propane tanks are easily portable, allowing for fuel sources to be moved as needed around a jobsite.  Because it is easier to store and transport than natural gas, and can be used both in liquid and gaseous form, propane is especially valuable on the job site.

The applications for propane are numerous. Construction professionals use propane not only to provide warmth for their employees, but to also create optimum temperatures for the application of drywall and plaster, to dry concrete, and to aid in the application of various adhesives.

Propane also powers a wide variety of equipment, from torches to tar kettles to compressors. Because it is a low-pollution fuel, propane can be used to safely power forklifts and skid steers within an enclosed area.

As a clean-burning, economical and safe energy source, propane is plentiful and reliable for all sorts of construction and industrial applications. A commercial propane supplier can help a business assess their needs for this alternative fuel and provide them with the necessary tanks as well as certain equipment. If you haven’t been using propane to power your job site, maybe it’s time to look into the possibilities that propane can provide.

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