Propane Gas Distribution Systems

What is a propane gas distribution system?

A propane gas distribution system means one or more propane storage containers, equipment, and facilities connected to a contiguous piping system through which propane gas is supplied by a distribution system retailer to at least 10 customers. – Tex. Util. Code Sec. 141.001(8)

What is a propane distribution system retailer?

A propane distribution system retailer is a retail propane dealer that owns or operates for compensation a propane gas system and has a Category E or K license issued by the Commission. This does not include a person that furnishes propane gas only to the person, person’s employees, or person’s tenants, if the service is not resold to customers. – Tex. Util. Code Sec. 141.001(5)

What is the maximum rate the propane distribution system retailer can charge each month?

A just and reasonable monthly rate is less than or equal to the allowable spot price plus the allowable markup. A retailer may also charge customers special fees for services such as a monthly account fee to maintain an active account, a late payment fee, a connection fee, etc. – Tex. Util. Code Sec. 141.003

 

For monthly maximum rates, click here.

 

When can’t a distribution system retailer disconnect propane gas service?

A distribution system retailer may not disconnect propane gas service to a residential customer:
  • on a weekend day or holiday officially observed by the State of Texas unless personnel of the distribution system retailer are available on that day to receive payments and reconnect services.
  • during an extreme weather emergency, meaning a period during which the previous day’s highest temperature did not exceed 32 degrees Fahrenheit and the temperature is predicted to remain at or below that level for the next 24 hours according to the nearest National Weather Service reports. – Tex. Util. Code Sec. 141.004