United Propane Gas to Resume Filling Pre-Buy Agreements February 15

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Press Release - United Propane Gas

February 6, 2014 (Paducah, KY) – United Propane Gas (UPG) has been

notified by its suppliers that they can begin filling pre-buy orders by

February 15. In addition, UPG has voluntarily granted a blanket contract

release to its customers through February 28, 2014. This release allows

customers to have their tanks filled by companies other than UPG. However,

those propane providers are faced with the same issues as UPG and are

charging the same if not more per gallon.


In the midst of a national propane shortage, United Propane Gas remains

committed to meeting the needs of its customers. The company is working

daily to obtain the propane required to fulfill its customers’ needs and prebuy

contracts.


In order to meet customer needs, UPG has paid $4.94/gallon to obtain

propane and have charged no more than $3.99/gallon to its customers.

Other local providers have charged upwards of $6.00/gallon to their

customers. UPG has prioritized its residential clients, by ceasing deliveries to

poultry farms, and limiting commercial deliveries.


A national propane shortage has crippled the United States and caused

emergency situations in Minnesota, Wisconsin, Michigan, Illinois and Indiana

among other Midwest states. The shortage is caused by several factors

including increased exports of propane in 2013; a record grain harvest

requiring quadruple propane demand for crop drying; and an early winter

led by a series of winter storms and crippling cold.


Typically, UPG would be transporting 80 loads of propane a day. Those

numbers were down to 40 loads by November and 30 loads by Christmas

because suppliers had not shipped to them. UPG has sent its supply of

tractor-trailers to terminals throughout the Midwest, Southeast, East Coast

and Southwest. Unfortunately, these trucks have been met with long lines at terminals creating longer than normal loading and delivery times. These

delays have been well documented in the media and are not a unique

problem to UPG. In fact, UPG can currently only acquire half of the propane

they were able to acquire at the same time last year.


UPG has also added more phone lines and customer service agents to assist

callers. UPG has set up a toll-free number (800.941.2209) for customers to

speak with a representative who will work with them to provide safe,

efficient customer service. The company is working to fill all customers orders

within the current wait times of 5 to 7 days for propane delivery. If a

customer’s tank is close to empty, UPG will make every effort to shorten this

wait time.


“It is the priority of United Propane Gas to meet our customers’ needs as

quickly as possible,” said Eric Small, UPG President. “The national propane

shortage has made it increasingly difficult to get the propane necessary to

service our customers. However, our suppliers are now able to provide us with

the propane needed to honor all of our pre-buy customers by February 15.”


Representatives from UPG are available for interviews upon request. Please

contact Bob Gunnell at 502.554.0940 or bob@boxcarpr.com or Danielle

Davis at 502.533.4472 or danielle@boxcarpr.com to arrange for a time.

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