Governor Signs Van Drew Bill Into Law Improving Protections For Propane Gas Users

GOVERNOR SIGNS VAN DREW BILL INTO LAW
IMPROVING PROTECTIONS FOR PROPANE GAS USERS

(TRENTON) - Legislation Assemblyman Jeff Van Drew sponsored to ensure New Jersey's propane gas consumers are fully informed about the pricing policies and the terms of their service plans or contracts was recently signed into law by Governor Jon S. Corzine.

The new law directs the Department of Community Affairs (DCA) to adopt rules and regulations requiring that propane gas suppliers and marketers distribute to consumers a written description of the terms of their agreements for propane gas service.

"Residential propane consumers are particularly vulnerable to sudden fuel price spikes, and may not be aware of the various circumstances that can cause those spikes," said Van Drew (D-Atlantic/Cape May/Cumberland).  "It is critical we empower consumers with information so they can protect themselves from potentially unscrupulous and unfair practices by propane suppliers and marketers."

Van Drew said the overall volatility of the petroleum market, including the impact of factors such as weather and storage capacity, coupled with major disruptions such as Hurricane Katrina in 2005, has caused severe increases in the price of gasoline and home-heating costs.  Propane wholesalers and retailers are forced to pay higher prices due to dwindling supply, and these increased costs are passed on to consumers - many times without their knowledge

The Assemblyman began researching the issue in 2003, noting he quickly learned that no one in state government had a handle on who was controlling and regulating the propane gas industry.

"In a loosely regulated industry, providers can potentially cash in during the winter months or other times when increases in usage make residents vulnerable," said Van Drew.  "Thousands of New Jersey residents rely heavily on propane.  This law will protect consumers by arming them with the knowledge to recognize abuses."

Among its provisions, the law will give consumers insights into the criteria that is used to determine the pricing structure of propane gas service.           

The law also mandates that any supplier or marketer who neglects to comply with the requirements be subject to a penalty of not less than $1,000 per violation.

"The strain of propane gas prices on consumers can easily get to the point where these residents must choose between heating their homes or putting food on the table," said Van Drew.  "Propane can be an affordable alternative to electricity if regulated and priced fairly."

The legislation was signed into law on August 21.

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