Bye Bye, AmeriGas!

Why we're leaving AmeriGas:

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• AmeriGas was the Coloma-Lotus Co-op contracted supplier for 13 years, until June, 2023. Co-op members received excellent pricing and good service for much of that time.

• Beginning in 2020 AmeriGas' service deteriorated nationwide. Billing issues surged and management became increasingly difficult to work with.

• Audits of Co-op billings resulted in ~$100,000 in AmeriGas "billing errors" over a 34-month period.  (Details of this process were sent to Co-op members in a recent bulletin.)

• AmeriGas made a half-hearted renewal offer last spring, increasing our margin by ~275%. Had we extended our contract with AmeriGas, the current Co-op price would be ~$3.00 - $3.25 per gallon + fees!

• AmeriGas has received widespread complaints throughout the US about its recent service and business practices. The company also appears to be in financial trouble.

• It was time to find a new supplier.

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AmeriGas' current pricing:​

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• Some Co-op Members are paying rates below AmeriGas' delivered cost, (~$1.50 per gallon,) while other Members are paying in excess of $3 per gallon. This latter price ($3+) is consistent with what AmeriGas offered our Co-op in recent contract discussions.

• The cheaper pricing is even lower than our old Co-op rate. I have to assume it is a mistake in AmeriGas' coding, given what they offered Co-op members and what the general public is paying ($4+/gallon.) 

• AmeriGas is losing money on these lower-priced deliveries.

• Hopefully AmeriGas management doesn't reset its pricing before we fully transition. My guess is that once I contact them on behalf of Members to attempt to get 'tank removal fees' waived (see below), management will realize its error and reset pricing. But it's anyone's guess when that will happen.

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​Why switch now?

If you're one of the lucky ones getting super-cheap pricing, you may wonder if you should sign up for The Collective and make the switch to InterState. In a word, Yes.  Here's why:

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• AmeriGas' below-cost pricing cannot continue indefinitely. There is no telling when AmeriGas management will realize their oversight and increase prices across the board to some unknown number.

• Members who sign up for The Propane Collective after 2/15/24 will be waitlisted and will not be able to transition to InterState until the next enrollment period opens. 

• The cut-off date and waitlist process exist because InterState and I need firm numbers to adequately plan for the transition. It's a big job!

• To avoid being waitlisted, you simply need to sign up for The Propane Collective by 2/15/24 and pay your membership fee when invoiced. You do NOT need to change out your tank by then (and likely will not be able to.)

• If you do not wish to join The Propane Collective, I encourage you to seek another provider so you are not 'stuck' when AmeriGas inevitably increases its rates.

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​To fill, or not to fill...

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• Once InterState and I receive the first round of sign-up forms, we'll be able to better project the transition timeline and offer guidance.

• Hopefully all Members read prior Co-op bulletins and followed suggestions to fill while pricing was still relatively low.

• As mentioned in prior Bulletins, the overall transition will likely extend into Spring or possibly early Summer, and is weather-dependent.

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Terminating AmeriGas' service:

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• After InterState has set its tank and/or conducted a leak test of your tank, contact AmeriGas to cancel your service: 1-800-263-7442

• Review your AmeriGas contract (which can be found online) for details concerning fees, processes and other requirements related to termination of service.

• It is up to you to determine what actions to take when terminating service. That said, I bring your attention to the following:

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1. ​Termination Fees:

• AmeriGas is customarily charging customers ~$300 in combined "tank pickup fees" ($199) and "dispatch charges" ($99.99) when terminating service. 

• Members who initiated service with AmeriGas within the last 3 years may also be subject to an Early Termination Fee of $149.99; check your contract for details.

• ​I will attempt to get AmeriGas to waive or at least reduce these fees on behalf of Co-op Members. I believe I can at least get the $99.99 dispatch fee dropped as it doesn't appear to be valid, but there are no guarantees.

• If you are charged fees you don't agree with, AmeriGas' most recent contract states that you must formally dispute the fee within 30 days, per this clause:  "If you dispute an invoice, you must notify us at 1-800-263-7442 within thirty (30) days of receipt." Given that, I suggest you call AmeriGas, dispute the termination charges, document who you spoke with and when, and confirm it by emailing AmeriGas Customer Care. 

• I am waiting to request that AmeriGas management waive/reduce these fees for Co-op Members as 1) I don't want to call attention to AmeriGas' pricing error and 2) I don't want to inadvertently trigger an update of AmeriGas' contract which could legitimize the dispatch fee.

• While these termination fees are excessive, please keep them in perspective. Co-op Members have saved hundreds of thousands of dollars collectively over the past 13 years!  Along those lines, most Members who have been with the Co-op for even just one year have likely saved far beyond $300.
   

2. Tank Change-out Process:​

• When changing propane companies, it seems to be common industry practice for suppliers to pump over propane from the old tank to the new tank and set the old tank aside. However, AmeriGas has a clause in its agreement (which can be found online) that prohibits customers from this practice:​