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Propane Pricing

Low rates.   Transparent pricing.    Unmatched Service.

If you've had propane service before, you're probably aware it's next-to-impossible to know what you're truly getting charged until you get your bill. (For more on that, check out our Savings page.)

As a Member of The Propane Collective you have access to year-round, low rates typically only available to high-volume purchasers. What's more, delivery fees are waived and tank rental rates are the lowest around! 

Real-Time Routed Member Pricing
   AS OF MAY 11:   $1.92 residential / $1.83 commercial

add .30 for will-call

BEST YEAR-ROUND PRICING

  • Lowest year-round rates & fees of any supplier.
  • Prices based upon the wholesale rate of propane.
  • Prices are published and verifiable through a state agency.
  • Price commitment to you is through 2029+.
  • You are free to cancel anytime.
VERIFIABLE PRICE STRUCTURE

Step 1. Check the current wholesale rate:

The wholesale rate we use is  "Targa-San Francisco."
It is a published government source which you can use to verify your price.** 

$1.03

WHOLESALE RATE

Targa, San Francisco
last updated 5/11/24

Step 2. Determine your margin:

Residential Routed Service:

Commercial Routed Service:

Residential Will-Call Service:

+  $  .89 

+  $  .80
+  $1.19

Coloma-Lotus Co-op Members receive a .04 discount on these margins.

Step 3. Add the two numbers together to verify your current propane rate:

Example:

If today's wholesale rate is $1 and you are a residential routed customer with a margin of $.89, your rate would be $1.89 per gallon.

* While all attempts are made to accurately post current pricing, errors may occur. Verify real-time pricing directly with InterState Propane or by emailing us.
** There may be up to a week's delay for the Collective's price to correlate with the published SF Targa rate or vise-versa. The differences are typically within a few cents, up or down, in a given week.

SUPPLIER: INTERSTATE PROPANE

Included Services:


 

  • Free Tank Monitoring

    • Tank monitor fees are waived and are available for both leased and customer-owned tanks.

    • ​Remote tank monitors transmit fuel levels to InterState's central monitoring system, allowing for more efficient delivery service. 
       

  • Free Installation: Leased Tanks

    • At no cost to Members, InterState will install its tank and equipment, pump over fuel from your existing tank if requested, and set the current tank aside.*

    • Equipment includes updated regulators (up to 2), copper connections and concrete blocks.

    • ​​​​​Fuel transfer service is at InterState's discretion. 

    • Before initiating service, your current tank should be at or below 30%.

  • Free Leak Test: Customer-Owned Tanks

    • A​t no cost to Members, a leak test will be conducted prior to start of service.

    • Leak tests are required for all Customer-Owned Tanks (COTs.)

    • Member must be present when this test is completed. 

    • Any required repairs to COT tank connections, regulators, etc. are the responsibility of the owner, unless equipment was installed by InterState and is under warranty.

FEES AND TERMS:
  • Delivery Fees

    • Routed service

      • $0 delivery fees 
         

    • Will-call service:

      • ​$10.95 delivery fee (subject to change in line with standard InterState delivery fees.)

      • 100-gallon minimum delivery

    • 10+ business days notice required. 

 

NOTE: Members may not change back & forth between will-call and routed. Once a Member requests will-call service, they must stay on that rate. Any exceptions need management approval.

  • Tank Lease Fee

    • Tanks under 494 Gallons = $35 per year (compare at $60 - $140 per year!)

    • Tanks 495 to 600 Gallons = $50 per year (compare at $90 - $150 per year!)

    • Generator tanks = $150 per year; see below for details.
       

  • Minimum Usage - Leased Tanks Only  
    Like many suppliers, InterState requires customers with leased tanks use a certain amount of propane per year. Minimum usage requirements help to ensure InterState doesn't lose money on the highly discounted terms it has extended our Members. 
     

    • Tanks under 494 gallons need to use a minimum of 300 gallons per calendar year.

    • Tanks 494 gallons and over need to use a minimum of 500 gallons per calendar year.

    • Minimum usage requirements begin with your first full calendar year of usage, i.e. if you become a member in 2024, the requirement will begin 1/1/2025.

    • If minimum use levels are not met, customers will be charged their margin rate multiplied by the shortage of gallons needed to meet the minimum usage requirement.​​ Maximum fee of $150.

EXAMPLE: RESIDENTIAL ROUTED CUSTOMER

250-gallon lesed tank; 200 gallons / year usage

Usage requirement:  

Subtract actual usage:

Equals Shortfall:

Multiply by Margin:

Total minimum usage fee:

 300 gallons 
-  200 gallons​

= 100 gallons

 x  .89

= $89 fee for calendar year. 

  • Leased Generator Tanks
    Tanks used specifically for generators typically experience sporadic usage. Consequently, leased generator tanks could incur the minimum usage fees described above.​ To decrease this possibility, InterState suggests Customers connect their generator directly to their main tank. Interstate may assist with this project as follows:
     

    • ​​Interstate will, at its discretion, cover the cost of the labor required to connect the generator to the customer’s main (leased) tank, up to 100’ in pipe length.

    • ​​Customers will be charged for required parts. Depending on the length of piping the cost could run approximately $250 to $350.

    • The trench must be provided by the Customer: minimum of 18” deep, maximum of 32” deep. (This is not recommended for runs over 100’.)

    • Customers may want to upsize their main tank from a 250-gallon tank to a 500-gallon tank.

  • Underground Tanks
    InterState Propane does not lease or install underground tanks, but will service them upon request. 
     

    • Cathodic protection test: $125 (required annually by State of CA.)​

    • Anode bags if needed; prices vary. (Currently ~$450 plus installation at $125/hour.

ELIGIBILITY:
  • Commercial Rate - 750 gallons / year minimum usage

    • The commercial rate is available to businesses InterState Propane services which use a minimum 750 gallons per year.  This rate is also available to residential home-based businesses that meet the following additional criteria:

      • There is a separate structure on your property utilized solely for business purposes.

      • You are in possession of a valid business license and/or are registered non-profit or agricultural operation.

    • Businesses which don't meet the 750-gallon criteria are eligible for the residential rate, subject to a lower annual minimum usage, as defined above.​

  • InterState Credit & Payment

    • Members must submit a credit application to InterState Propane and complete required paperwork. ​​If credit is approved, accounts are given net 30-day terms from the date of delivery. Payment may be made by check, credit or debit card.

    • If credit is not approved, Members have two options to receive Routed service/rates:

      • Sign up for EFT (electronic funds transfer.) Funds will be removed from your designated bank account 1 to 5 days after delivery.

      • Place a deposit payment on your account 1.5x the size of your tank. 

        • ​250-gallon tank: $375 deposit

        • 500-gallon tank: $750 deposit

        • Any remaining balance must be paid before next delivery is made.

PROPANE COLLECTIVE / INTERSTATE CONTRACT
  • InterState Propane has made a minimum 5-year commitment to The Propane Collective.

  • Members are NOT committed to the 5-year period. If you are unhappy with the pricing or service you are free to end your service at any time.

  • There are no early-termination penalties, however membership fees are non-refundable unless service is declined by InterState.

  • The propane price margins are fixed through 12/31/25.

  • Beginning 1/1/26 our margin may be slightly adjusted each year to reflect changing conditions:

    • Our margin may be decreased if we grow the Collective beyond initial projections.

    • Our margin may be increased if business conditions change. 

    • The margin will not adjust more than 5 cents per year within our 5-year contract period.​

    • Both TPC and InterState must provide rational for, and jointly agree to, any price increases/decreases within our 5-year contract period ending 2029.

  • Our contract is tied to the "TARGA - San Francisco" propane wholesale rate, which can be found at the California Department of General Services (DGS)

  • Targa's rates may change daily, but only weekly updates are available to the general public. Due to this lag in real-time updating, the amount you're charged may differ slightly from the amount posted on the DGS website, up or down. In addition,

    • September to February: Our pricing is based upon Targa's real-time pricing, which as explained above may not be reflected in the DGS publication until the following week.

    • March thru August: Our pricing is tied to real-time SF Targa rates + 7 days. This 7-day delay was a necessary concession for InterState to agree to use SF Targa as our margin benchmark. 

  • Call InterState propane or email janet@propanecollective.com at any time to verify pricing.

PRICE VERIFICATION:
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