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Propane Pricing

Low rates.   No delivery fees.   Transparent pricing. 

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.)

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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! 

HOW DOES IT WORK?

$1.40

WHOLESALE RATE

(updated weekly) 

1. Determine your margin.

$1.45

WHOLESALE RATE

(as of 1/31/24) 

​Residential Routed Service:​​

Commercial Routed Service:

Residential Will-Call Service:

+  $  .89 ​

+  $  .80
+  $1.19

2. Calculate your price.

Add your margin to the current "Wholesale Rate."
(The wholesale rate is the price some suppliers pay for propane
as published by the CA Department of General Services.)

Example:

If today's wholesale rate is $1 and you are a residential routed customer, your rate would be $1.89. 

3. That's it! 

See below for additional services and terms...

INCLUDED SERVICES:

  • BBQ Tank Fills​

    • ​Get up to 2 BBQ cylinder tanks filled at time of delivery at your discounted rate*.

    • No more swapping BBQ cylinders and paying a premium for BBQ propane.
      * BBQ tanks must be serviceable and located next to the main tank. Cylinder service available at driver's discretion.
       

  • 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. 
       

  • 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%.
      ​

  • 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 OTHER 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. Additional fees apply if will-call customers run out of gas and/or need expedited delivery. 
         

  • 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.

    • For locations with tight setbacks, two 120-gallon tanks may be leased for $70/year. Minimum usage of 300 gallons total will apply. See below for details about Minimum Usage.
       

  • 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.

    • 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: If a customer on a .85 margin is leasing a 250-gallon tank and uses 225 gallons per year, they would be charged a min. usage fee of $63.75. (7      5 gal. shortfall x margin rate of .85 = $63.75.)

      For comparison, the suppliers who consistently have the least expensive propane prices - Signature Propane and 49'er Propane - both have stricter minimum usage fees. For a 250-gallon tank, Signature has a 400-gallon minimum while 49'er has a 350-gallon minimum. 


Note: if you lease your tank and use less than 200 gallons per year, joining the Collective may not pay off. In that case, you may be better off leasing a 125-gallon tank from one of the companies noted above or buying a tank.

​

  • 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.



      Propane costs fluctuate throughout the year based upon supply and demand. The Collective's contract price is based upon a fixed margin over the published wholesale cost of propane. Some group's contracts are negotiated using what is called "laid-in cost," which is the wholesale rate plus a variable 'add-on' amount the propane company tacks on to account for its cost to deliver the propane to its distribution center. That 'add-on' cost is determined by the propane company and can vary dramatically, e.g. an additional .07 to .20 added to the wholesale rate. Our "true wholesale + margin" contract allows us - and you - to ensure the amount you're charged for propane is consistent with what we negotiated on your behalf.
       

  • Open Enrollment Coming Soon!

    • ​Membership is currently only open to Coloma-Lotus Co-op Members, but...

    • Beginning Spring/Summer 2024, membership will be open throughout much of El Dorado and Placer counties!
       

  • Commercial Rate

    • The commercial rate is available to all commercial locations InterState Propane services.  It is also available to residential home-based businesses that meet the following 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.

      • You utilize a minimum of 750 gallons per year.
        ​

  • InterState Requirements

    • 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.

    • InterState does not currently have an online billing option, although that is in the works. For those who want automated payments, EFT billing is available. 

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  • InterState Propane has made an initial 5-year commitment to The Propane Collective.

  • Our joint intention is for a long-term, collaborative partnership.

  • 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.

  • 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.​​​​

ELIGIBILITY:
LENGTH OF TERM:
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