Propane contracting - is it right for you?

Kelly Stenka

Jul 08, 2022

Propane truck

Even though it may be warm outside now, it is not too early to start thinking about the winter month’s ahead, and what is currently happening in the Energy Markets right now should make you a little nervous of what it may cost to heat your home this winter. The Markets have been all over the place and prices being higher for diesel and gas are affecting the prices of propane as well, with the uncertainty it might be a good idea to investigate contracting your propane for the upcoming winter. Central Valley Ag offers several different contracting options to help keep your home warm for the winter.

Budget Bill Contract

CVA offers a budget bill propane contract. This contract allows you to determine the gallon amount you think you will use, then we split it up into monthly payments from the 1st of June to the end of April. This insures you will pay the same amount each month, helping you to budget for the winter month’s ahead and knowing how much you will be spending on propane each month! And the price will stay the same for the entire winter even if the markets continue to rise.

Prepay Contract

Another contract option is to Prepay ahead for the upcoming season. The customer determines how many gallons of propane you would like to purchase for the winter, and you do just that. Let’s say you use 1500 gallons a year, you prepay for the 1500 gallons up front, and it will be delivered as needed until you run out of gallons or winter, all contracts that we offer through CVA for home heating end the last day of April. If you have dollars remaining at the end of this contract, you will be credited for the remaining dollars, or it can be rolled over into next years propane contracting. Prepay pricing is the cheapest priced contract, it is the stress-free contract knowing your propane is already paid for, for the season.

Fixed Price Contract

The last contracting option is the Fixed Price Contract. With this contract you must put 15 cents down to the gallons you contract at a fixed price, this locks in that price for the winter. If you have unused gallons at the end of the contract period you will forfeit any of the 15 cents down you have remaining. This is a good contract to ensure the same price all winter for your heating needs, the 15 cents down will go towards the locked in price, so it doesn’t cost you 15 cents more, it is applied to the locked in price. Purchasing propane in advance at a fixed price should put your mind at ease and keep you from getting stuck paying higher prices later in the season because you need propane. Contracting doesn’t always guarantee the best price, but it guarantees you will be warm through the winter months. And in the last few years it has been the smart way to go because prices typically were higher during the heating months.

Contact your local CVA Energy representatives to see what may be right for you!

CVA Energy Team

CVA Energy Team

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