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Frequently Asked Questions

for Coloma-Lotus Co-op Members

Top right of the Pricing page

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  • Why did it take so long to get a new contract? Isn't taking over the Co-op business a 'no-brainer' for propane companies?
    Not even close! There are many risks suppliers face when offering discounted pricing to a group such as ours. Profitability can be impacted by changes in transportation costs, tank shortages, rising steel (tank) costs, labor shortages, strikes, business/policy changes, weather, natural disasters, etc. Suppliers are more risk-averse now than ever, as every single one of these factors has impacted the propane industry in recent years.

    In my attempt to secure a competitive offer for our group, I reached out to 7 suppliers, had lengthy discussions with several, and protracted negotiations with a few.  My discussions with InterState's team and their related proposal offered the best combination of price, service and transparency while also employing a partner-based approach, which was particularly important to me.

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  • Why is there a membership fee?
    I created the Coloma-Lotus Co-op back in 2005 and have managed it as a volunteer community service ever since.  It's just been me; there have been no others involved. While I've received miscellaneous referral fees at times, the vast majority of my time has been donated. 

    In recent years, managing the Co-op has become incredibly time-intensive; I simply could not continue to run
     it without charging members for this service. I modeled the fee structure after a similar propane buying group back east. Members' savings should far exceed the modest membership fee.
     

  • Where do our membership fees go? 
    In addition to my time, I now have hard costs to cover, e.g. website hosting, payment processing, business fees, insurance and legal costs, etc. In time, I hope to grow the Collective to a size that generates enough revenue to completely cover my costs and time....and further increase our buying power in the process!
     

  • Are we still a Co-op? What is the legal structure of The Propane Collective?
    We were never an established entity or technically a "Co-op," which is actually a jointly-owned enterprise that is democratically controlled. "Coloma-Lotus Co-op" was just a name for our buying group. The Propane Collective is a company I've formed and am operating as an LLC. I initially planned to create a non-profit, but after reviewing the various filing, reporting and other requirements, I decided an LLC was easier, and thus a better fit.
     

  • I don't plan to join The Collective. Will you still help me resolve my AmeriGas issues?
    The time I've put in addressing and resolving various AmeriGas issues has been and will remain a voluntary effort. Any work I do going forward to address past or future AmeriGas-related issues will benefit all; you do not need to join The Collective to receive my help.  
     

  • Why is our new price higher than the AmeriGas deal?
    We were incredibly fortunate to get the deal we had with AmeriGas; unfortunately, it turned out to be a losing proposition for AmeriGas and one which was not sustainable Our price was lower than most HOA pricing, yet our members were spread out all over the place.

    Our new rate is a great deal when compared to the price every other propane company charges. As shown on the Savings page, the Collective's rate is over $1 less per gallon than average, and considerably less than the lowest prices out there.

     

  • How long will it take for InterState to switch out my tank? 
    The timeframe is variable and depends upon many factors, including the number of people who initially sign up, where you are in the sign-up queue, the weather, and each person's individual situation. 
     

  • I currently lease my tank from AmeriGas. What happens with that tank and how does the switch to InterState work?
    Please read the info on the AmeriGas Details page for important information about this process.
     

  • AmeriGas charged me a super-low price for my last delivery. Should I wait-and-see or join now?
    There are many reasons it makes sense to join the Collective now and get in line to switch to InterState. These are fully explained on the AmeriGas Details page.
     

  • I own my tank - will I save money? 
    In most cases, YES, especially if you choose routed service. While many companies offer specials during summer and/or at times when demand is low, The Propane Collective's rates are consistently low year-round. While you may find a lower quote from time-to-time, it's doubtful you'll be able to find lower year-round pricing. 
     

  • I own my tank and call around; what if another company is willing to price match?
    They may at times, but suppliers likely won't do that year-round and/or once they've grown to the point where demand exceeds their capability. Regardless, I respectfully request folks refrain from attempting to leverage our pricing against another company's, as it doesn't show consideration for the time I've put in over 18 years to create this program and negotiate a low price for all.
     

  • Why is will-call service more expensive than routed service?
    Will-call deliveries are less efficient and more expensive for suppliers, as management can't adequately forecast deliveries for will-call customers.
     

  • I've always had will-call service and have managed my own deliveries, but I want to take advantage of the lower, routed rates. How often will InterState deliver?
    One of the advantages of tank monitoring, is that InterState can monitor your usage and only deliver when necessary. In general, they aim to maximize efficiency by only delivering as often as necessary, which is typically when your tank approaches 30% (Weather events may impact frequency.) 
     

  • How does tank monitoring work? What signal does it utilize for communication?
    Tank monitors do just that: monitor the level of your tank, feeding that information to InterState Propane utilizing Verizon's cellular network. Monitoring allows InterState to efficiently manage your usage and associated deliveries, ensuring you always have an adequate supply of propane.  This service is provided at no charge to Collective Members. If your site does not have a reliable Verizon connection, InterState will monitor your tank the 'old-fashioned' way, forecasting deliveries based upon usage and other input.
     

  • Why is there a minimum usage fee? Is that only for leased tanks?
    Minimum usage requirements only apply to leased tanks. Propane tanks are expensive pieces of capital equipment, costing several thousand dollars each. A certain amount of revenue per tank must be generated each year to offset suppliers' investments in this equipment. â€‹Minimum usage fees help to ensure InterState doesn't lose money on the discounted pricing it is offering our Members. This requirement protects us all as the Collective will only be successful long-term if our partner meets its profitability goals. 

    Note: Because of this requirement, Membership may not make sense for ve
    ry low usage customers with leased tanks, i.e. less than about 200 gallons per year. (Minimum usage fees do not apply to customer-owned tanks.)

     

  • Why is the tank rent for generator tanks more expensive?
    Generator tanks pose a bit of a challenge for propane suppliers as usage is typically both sporadic and concentrated. In addition, a certain amount of revenue is required to justify the purchase and placement of each tank. The higher tank rent is reflective of these challenges. 

    Note: Because of their sporadic usage, leased generator tanks may be particularly vulnerable to minimum usage fees. For this reason, InterState suggests Members consider connecting their generator directly to their main tank, upsizing the main tank as needed. See the
    Pricing page for details.

     

  • Why is the spacing weird in some places on this website?
    If you can answer that question, you're hired! :-)

     

  • Why is the SF Targa price on this website different than California's DGS site?​
    There are two reasons the prices may slightly differ:​
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    1. ​The DGS price sheets are updated weekly and may not reflect Targa's real time mid-week price changes.

    2. Our contract with InterState is based upon real-time SF Targa pricing from September to February, and DGS' published SF Targa rates from March to August. The reason for this is complicated to explain, but was a necessary concession for InterState to agree to use SF Targa as our margin benchmark. 

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