2016 Propane Distribution Price Caps

House Bill 2532 relating to the regulation of propane distribution system retailers was passed during the 83rd regular legislative session (2013).  The bill applies to systems that supply propane through a contiguous piping system to at least 10 customers; it does not apply to the retail or wholesale sale of propane. The bill established standards for distribution system retailers who supply propane to residential or commercial end users, bringing those entities under the ratemaking jurisdiction of the Railroad Commission.  In addition, the bill prohibits the disconnection of service under certain circumstances.  The Commission has established a toll-free number, 1-877-228-5740, for customers to report such service interruptions.

2016 Allowable Spot Prices
Month (1) Allowable Spot Price (2)
Allowable Markup (3)
Maximum Price per Gallon Maximum Price per Cubic Foot
January 0.409 1.756 2.17  0.0595
February 0.362  1.756 2.12   0.0582
March 0.356 1.756 2.11  0.0580
April 0.414 1.756 2.17  0.0596
May 0.455 1.756 2.21  0.0607
June 0.487  1.756 2.24  0.0616
July 0.512 1.756 2.27  0.0623
August 0.493 1.756 2.25  0.0618
September  0.464 1.756 2.22  0.0610
October 0.472 1.756  2.23  0.0612
November 0.534 1.756 2.29  0.0629
December   1.756    
  1. For a customer's bill that contains days in more than one month, the month with the most days covered by the bill shall be considered the billing month (TEX. UTIL. CODE §141.003(a)).

  2. Allowable Spot Price is the average Mont Belvieu, Tx Spot Price for the two months preceding the billing month. The Mont Belvieu, Tx Spot Price is obtained from the U.S. Energy Information Administration (EIA) (TEX. UTIL. CODE §141.001(2)).

  3. Allowable Markup is the two-calendar-year rolling average of the differences between the monthly EIA retail prices per gallon reported during the two calendar years immediately preceding the calendar year in which a billing month occurs and the corresponding spot prices per gallon reported for the same month an EIA retail price was reported during those two calendar years (TEX. UTIL. CODE §141.001(1)).

Last Updated: 11/14/2016 2:19:47 PM