Current propane prices are more than three dollars a gallon less than last year.
The high prices of last year, the polar vortex, the propane shortages are all just a memory now.
While I am happy that this winter was not a repeat of last year, don’t think that some form of the past won’t repeat itself.
We need to review the past to plan for the future.
The Cochin Pipeline does not deliver propane to Minnesota anymore. This supply has been replaced by several rail terminals in the state. They are all operational, but did not get a true test this season.
The corn harvest this year was not as wet as last year. Although more bushels were dried in our trade area because of prevent plant the previous spring, there was less propane consumed as an industry to dry corn.
The winter season we are currently in started out cold, but the months of December and January were warmer than normal. No Polar Vortex in the news this year.
In response to the past, Central Valley Cooperative did plan for the future.
We purchased propane gallons off rail to replace the gallons we historically purchased off the Cochin Pipeline. This has worked out well for us. It is a plan we will continue to use as the current pipeline into Minnesota cannot supply enough propane for the state in a “normal” winter.
We installed additional storage to have better reserves for when supply is not as plentiful. We installed a 30,000 gallon storage tank in Northfield, along with converting two existing 18,000 gallon tanks for propane use in Northfield. We installed a 30,000 gallon storage tank in Owatonna. We also added a pump to an existing 30,000 gallons storage tank at Interstate Mills in Randolph. That adds up to an additional 126,000 gallons of storage added.
We also contracted more propane to stabilize prices for our customers and to avoid the price spikes that were seen last year.
Last season we delivered every contract gallon when it was needed for the contracted price. Not every propane dealer can say they did that. There were contracts that were not honored and gallons that were not delivered by others. We are very proud of this accomplishment.
With this information in mind, we want to assure you that we are here for you in the future.
With the investments and practices we have made, we plan to be the most reliable propane marketer in the area. We are positioned to be able to take care of our customers’ needs in the most adverse circumstances.
Thank you for your patronage and helping us to be your reliable propane marketer.
