Propane Gas Distribution Systems

What is a propane gas distribution system?

In accordance with Texas Utilities Code (TUC) §141.001(8), a propane gas 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.

What is a propane distribution system retailer?

In accordance with TUC §141.001(5), a 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 Railroad Commission of Texas (Commission). This does not include a person who furnishes propane gas only to the person, person’s employees, or person’s tenants, if the service is not resold to customers.

What rate may a propane distribution system retailer charge each month?

In accordance with TUC §141.003, a retailer shall charge a just and reasonable monthly rate. A rate is just and reasonable if it 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. Certain taxes and other governmental fees may also be passed through to customers without any additional mark up.

Monthly maximum base rates are available on the Commission’s website.

 

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

In accordance with TUC §141.004, 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; or
  • 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.