House passes bill endorsed by Rep. Tim LeGeyt to protect propane consumers

The Connecticut House of Representatives passed a bill today that will help protect consumers who enter into agreements with companies that supply propane gas or fuel oil for residential heating. The bill requires parties entering into such an agreement to execute a written contract for the rental of a gas or oil storage tank for a term of no more than 36 months. By law, retailers must include the unit price, units sold, and delivery surcharge on the delivery tag. Retailers may not collect more than the ticket value.

State Rep. Tim LeGeyt (R-Canton) hailed passage of the bill. “Propane gas companies have held customers hostage with a controlling position based on long-term tank rental contracts,” said Rep. LeGeyt.  “This bill levels the playing field in that the customer now has some flexibility to shop the price and change supply companies without being stuck in a situation that requires years of tank rental payments to a former supplier.”

The contract must also allow the customer to purchase the propane tank for fair market value at the end of the contract. The bill does not require a written contract if the terms and conditions are fully disclosed on the delivery ticket.

The bill requires that “guaranteed price contracts,” instead of contracts offering a “guaranteed price plan,” for the retail sale of home heating oil or propane gas be in writing. These include a fixed or capped price contract or any other agreement where there is a set per gallon price unless certain circumstances occur.