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FFY2015 EAP Annual Training August 12 & 13, 2014 St. Cloud

FFY2015 EAP Annual Training August 12 & 13, 2014 St. Cloud. Propane Legislation & EAP. 1. Propane Legislation. Context Background Sharing for the purpose of a few; most energy vendors will not need changes in their business EAP is not an enforcement entity

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FFY2015 EAP Annual Training August 12 & 13, 2014 St. Cloud

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  1. FFY2015 EAP Annual Training August 12 & 13, 2014 St. Cloud Propane Legislation & EAP 1

  2. Propane Legislation • Context • Background • Sharing for the purpose of a few; most energy vendors will not need changes in their business • EAP is not an enforcement entity • Value partnerships and collaboration to best serve HHDs • Midwestern Governors Association Propane Workgroup • Vendor Chapter and Agreement both reference law

  3. Propane Legislation • Minn. Stat. §216B.0992 Price and Fee Disclosure • Propane Distributors must have a price and fee list: • 1.) made available to the general public upon request; and • 2.) provided to new customers before residential heating service is initiated. • Used to be requested along with the EAP agreement • EAP agreement now mimics this language, and states that it is to be provided upon request

  4. Propane Legislation • Minn. Stat. §216B.0993 Budget Payment Plan • Propane distributers offering budget payment plans to HHDs: • must make same plan available to all customers, including EAPHHDs. • (b) must divide estimated annual propane bill into equal monthly payments. Plans started after traditional start date, are pro-rated. HHDs may request end of year credits in cash or leave it on account for future deliveries. • (c) must notify HHDs of price or fee changes that may affect monthly payments by 20%. • (d) may alter or terminate the plan if HHD fails to pay two monthly payments during period of the plan. However, parties can enter into a mutually agreeable plan.

  5. Propane Legislation • Minn. Stat. §216B.0994 Propane Purchase Contracts • A propane distributor is prohibited from adding fees to bills for HHDs with pre-buy contracts or set pricing of propane for the period of the contract as long as: • (1) the HHD has met all contract obligations; and • (2) the propane distributor can obtain product and a force majeure (event out of their control) has not been declared by the propane distributor's supplier.

  6. Propane Legislation Minn. Stat. §216B.0995 Terms of Sale Cash sales. A propane distributor with an available supply of propane must not refuse to sell propane to a customer who: (1) pays upon delivery; or (2) receives energy assistance from EAP, a governmental or private agency that has funds available to pay for a delivery. LIHEAP participation; delivery. A propane distributor participating in EAP must provide, upon HHD request, EAP information, including income eligibility and SP contact info. Third-party credit disclosure. A propane distributor must not share names of delinquent customers to other propane distributors, except in routine credit checks.

  7. Propane Legislation • Minn. Stat. §325E.027 Discrimination policy • Dealers and distributors of propane gas or number 1 and 2 fuel oil who had has signed an EAP vendor agreement may not refuse to deliver to any an EAP HHD located within their normal delivery area if: • (1) the person has requested delivery;(2) the dealer or distributor has product available; • (3) the person requesting delivery is capable of making full payment at the time of delivery; and • (4) the person is not in arrears regarding any previous fuel purchase from that dealer or distributor.

  8. Propane Legislation • Continued - Minn. Stat. §325E.027 Discrimination policy • A dealer or distributor making delivery to a person receiving EAP grants may not charge that person any additional costs or fees that would not be charged to any other customer. • And, must make available to that person any discount program on the same basis made available to any other customer. • The commissioner of commerce may enforce this section.

  9. Propane Legislation • SPs notify DOC with complaints/concerns of propane distributors: • Not providing the public price lists. • Not providing budget plans to EAP HHs (if offers to others). • Failing to notify budget plan customers of price or fee changes >20%. • Refusing EAP HHD delivery when funds are available for delivery. • Failing to make EAP information, including income eligibility and contact information available to customers. • Adding service fees to pre-buy contract customers when not allowed. • Discriminating against EAP HHs as explained in law. • DOC EAP will send reports to DOC enforcement. More information is better.

  10. Debriefing Propane Response • What worked? • What didn’t? • General Comments

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