LP Gas, April 2017

because they move in cycles Alexander says The cold weather will still come However Alexander explains marketers are going to have to be more aggressive than they have in the past to offset the installation of more efficient furnaces and appliances along with better insulated newer homes This year marked the U S sixth warmest winter in the 123 years that records have been kept according to the National Oceanic and Atmospheric Administration An especially warm February followed by a huge and harsh March weather system combined to threaten the famous cherry blossom blooms in Washington D C The widespread storm impacted about 120 million Americans inducing many of them to stay home hunker down and crank up the heat amid the late season freeze Nashville Tennessee and Atlanta experienced temperatures in the teens and more than 6000 flights were canceled across the country But for many propane marketers the heating season mainly amounted to too little cold that was too late in coming Theres no way to make up for this winter says Alexander ref lecting on the major March noreaster that swept through New England and points west and south even covering the Carolinas in an unseasonable blanket of snow Multiple power outages occurred in the Northeast driven by 60 mph winds and near hurricane force gusts 41 in of snow buried Bridgewater New York while the 31 in that fell on Binghamton New York amounted to the highest amount ever experienced by the town Its always nice to start out with a healthy first quarter Alexander says of the Northeasts March madness Thats going to make a cruddy beginning of the year a bit better but it wont erase the warm winter weve had Assessing alternatives New England experienced a cold December US weekly propane prices for residential customers Dollars per gallon Winter 2015 16 Winter 2016 17 propane price Oct Nov Dec Jan Feb Mar Source U S Energy Information Administration State Heating Oil and Propane Program U S residential propane prices trended higher this winter up 37 cents a gallon compared with the same time last year to 239 a gallon Jan 30 2017 but temperatures turned mild 300 250 200 150 100 050 000 in January and February says Leslie Anderson the new president and CEO of the Propane Gas Association of New England Its going to be tough for some of the marketers because the volumes arent as much as wed like them to be she says Its another mild season on top of a mild winter last year which does make it tough for some of the members Alternatives going forward are gaining heightened attention according to Anderson Theres a big interest in autogas among the members Its getting more traction than in the past she says We need more stations for those to have it really take off beyond the fleet market which is where it is right now New Englands shorter growing season puts some limits on propanes role as a lawn mower fuel although Anderson says additional LP gas grass cutting demonstration projects can assist in attracting the professional mowing industry to propanes attributes We do have more landscapers branching out into fire pits and thats something to put on the list of categories to pursue she says Interest among New Englanders in outdoor kitchens is also heating up WINTER RECAP You really cant rely on the heating season anymore in Florida says Greg Blazina director of propane operations at Florida Public Utilities Co a subsidiary of Chesapeake Utilities Corp You really cant factor it into your gallons If you get cold its a bonus While the March noreaster did indeed dip down south whatever freezing there was stayed in the northern portion of the state where there are few commercial citrus growers thus extinguishing load prospects from orchard heating units Floridas overall winter was a hot one with little cooling rain to fill propane sales ledgers Pricing was upped 10 cents to 15 cents per gallon just to cover margins Its been nothing but dry Even the lakes are majorly dry Ive never seen a winter this dry Blazina says Were not running fireplaces were having to run the air conditioning nonstop Blazina adds If its in the 50s youre running your fireplace and pool heaters Temperatures were barely reaching down to the 50 degree level which is not the norm Continued on page 20 www LPGasmagazine com April 2017 LPGas 19