Print
Comment
Rate
Resident says propane fees are predatory
Thelma Grimes/San Pedro Valley News-Sun
As winter comes rolling in, Arizonans may have temperatures in the 80s during the day, but the night and early mornings require heating in the home.
Rural residents of the San Pedro Valley rely heavily on propane this time of year, but as a couple of residents in Pomerene have learned recently, who is providing that service makes a big difference.
Dennis Barnhardt, a longtime resident, said he suddenly received a $299 bill from the Ferrell Gas Company. The bill was labeled overdue, and came as a surprise to the couple because they didn't even understand what the charges were for.
Barnhardt said he had never had problems with Ferrell Gas, which purchased the propane company from Blue Flame in 2002.
However, this year, Barnhardt said there were plenty of issues and after having no luck trying to work with the company, he was forced to file a complaint with the Arizona Corporation Commission, the Arizona Attorney General and seek assistance from State Rep. Manny Alvarez, who represents District 25.
Alvarez said his office took the complaint seriously and after some research found that Barnhardt was being unfairly charged for gas he hadn't even purchased. Alvarez said his office filed a complaint with the Corporation Commission, which then made the company work with the Pomerene couple.
Alvarez noted that this wasn't the first complaint he had received about Ferrell Gas' unfair billing practices.
Barnhardt said after the elected officials got involved, Ferrell Gas decided to cooperate, taking away the $299 charge, which was said to be a minimum usage penalty, negotiating a deal so he could purchase his propane tank outright, and giving him a price of $2.44 per gallon to fill it.
Prior to Alvarez's getting involved, Barnhardt was told the cost to fill the tank would be $3.19.
The Pomerene couple was pleased with the outcome, but soon found out they were the only ones receiving the good treatment.
Pomerene neighbors were charged the $3.19 rate to fill their propane tank, and when they asked why their neighbors were only being charged $2.44, representatives of the company said new customers receive a lower rate.
Barnhardt has been a customer since 2002.
When asked about the discrepancies in billing, James Ferrell, chief executive officer of the company, said he felt Ferrell Gas rates were fair, and that new customers did receive the better rates.
When asked how two longtime residents living side by side are being charged such different prices, Ferrell referred all questions to his legal department, stating he stands by the rates.
Alvarez said as a state official he can't dictate the rates a company charges, no matter how unfair they may seem.
Barnhardt said he has a lot of concerns about the rates Ferrell Gas is charging and their business methods, including charging a minimum usage penalty.
"It is wrong and should be made illegal," he said. "We all know and are told every day that energy conservation is the way to go, not only to save on home heating costs, but to reduce greenhouse gases and minimize foreign oil dependencies as well. A minimum or a no usage penalty forces consumers to use more energy than they really need. I encourage citizens to contact their state and national representatives and senators, as well as the state attorney general's office and urge them to legislate against minimum and no usage penalties."
In learning about the billing processes of propane companies, Barnhardt also took issue with propane tank rental policies. In this case, Barnhardt and his neighbor had been renting a tank from Ferrell Gas and were required to pay their prices to get it refilled.
Other local, cheaper companies could not refill the tanks because Ferrell Gas owned them. Because the company insisted on keeping the $3.19 charge for one resident and the $2.44 charge for Barnhardt, one couple decided to spend $500 and purchase a new tank that would have no strings attached.
This will allow the couple to get refills from any local company, including those charging cheaper prices.
"Policies that do not allow a consumer to shop around for the best propane prices are predatory," Barnhardt said. "Tank rental policies today require a consumer to buy propane only from the supplier of that tank, allowing the supplier to charge non-competitive prices for propane. In fact, current law allows for a large fine against anyone filling a tank rented out by another company. This protects the propane company renting the tank, but does not protect consumers against predatory per-gallon pricing."
Barnhardt said he was also personally offended when the propane company he had been dealing with for years said they had a policy that granted new customers better rates.
"Shouldn't existing customers be the most valued?" he said. "Variable pricing as is in effect today allows a propane supplier to take advantage of consumers when they can."
Barnhardt urged fellow residents to contact their state representatives about what he called unfair business practices by his propane company.
As winter comes rolling in, Arizonans may have temperatures in the 80s during the day, but the night and early mornings require heating in the home.
Rural residents of the San Pedro Valley rely heavily on propane this time of year, but as a couple of residents in Pomerene have learned recently, who is providing that service makes a big difference.
Dennis Barnhardt, a longtime resident, said he suddenly received a $299 bill from the Ferrell Gas Company. The bill was labeled overdue, and came as a surprise to the couple because they didn't even understand what the charges were for.
Barnhardt said he had never had problems with Ferrell Gas, which purchased the propane company from Blue Flame in 2002.
However, this year, Barnhardt said there were plenty of issues and after having no luck trying to work with the company, he was forced to file a complaint with the Arizona Corporation Commission, the Arizona Attorney General and seek assistance from State Rep. Manny Alvarez, who represents District 25.
Alvarez said his office took the complaint seriously and after some research found that Barnhardt was being unfairly charged for gas he hadn't even purchased. Alvarez said his office filed a complaint with the Corporation Commission, which then made the company work with the Pomerene couple.
Alvarez noted that this wasn't the first complaint he had received about Ferrell Gas' unfair billing practices.
Barnhardt said after the elected officials got involved, Ferrell Gas decided to cooperate, taking away the $299 charge, which was said to be a minimum usage penalty, negotiating a deal so he could purchase his propane tank outright, and giving him a price of $2.44 per gallon to fill it.
Prior to Alvarez's getting involved, Barnhardt was told the cost to fill the tank would be $3.19.
The Pomerene couple was pleased with the outcome, but soon found out they were the only ones receiving the good treatment.
Pomerene neighbors were charged the $3.19 rate to fill their propane tank, and when they asked why their neighbors were only being charged $2.44, representatives of the company said new customers receive a lower rate.
Barnhardt has been a customer since 2002.
When asked about the discrepancies in billing, James Ferrell, chief executive officer of the company, said he felt Ferrell Gas rates were fair, and that new customers did receive the better rates.
When asked how two longtime residents living side by side are being charged such different prices, Ferrell referred all questions to his legal department, stating he stands by the rates.
Alvarez said as a state official he can't dictate the rates a company charges, no matter how unfair they may seem.
Barnhardt said he has a lot of concerns about the rates Ferrell Gas is charging and their business methods, including charging a minimum usage penalty.
"It is wrong and should be made illegal," he said. "We all know and are told every day that energy conservation is the way to go, not only to save on home heating costs, but to reduce greenhouse gases and minimize foreign oil dependencies as well. A minimum or a no usage penalty forces consumers to use more energy than they really need. I encourage citizens to contact their state and national representatives and senators, as well as the state attorney general's office and urge them to legislate against minimum and no usage penalties."
In learning about the billing processes of propane companies, Barnhardt also took issue with propane tank rental policies. In this case, Barnhardt and his neighbor had been renting a tank from Ferrell Gas and were required to pay their prices to get it refilled.
Other local, cheaper companies could not refill the tanks because Ferrell Gas owned them. Because the company insisted on keeping the $3.19 charge for one resident and the $2.44 charge for Barnhardt, one couple decided to spend $500 and purchase a new tank that would have no strings attached.
This will allow the couple to get refills from any local company, including those charging cheaper prices.
"Policies that do not allow a consumer to shop around for the best propane prices are predatory," Barnhardt said. "Tank rental policies today require a consumer to buy propane only from the supplier of that tank, allowing the supplier to charge non-competitive prices for propane. In fact, current law allows for a large fine against anyone filling a tank rented out by another company. This protects the propane company renting the tank, but does not protect consumers against predatory per-gallon pricing."
Barnhardt said he was also personally offended when the propane company he had been dealing with for years said they had a policy that granted new customers better rates.
"Shouldn't existing customers be the most valued?" he said. "Variable pricing as is in effect today allows a propane supplier to take advantage of consumers when they can."
Barnhardt urged fellow residents to contact their state representatives about what he called unfair business practices by his propane company.
 |
 |
|
| Attorney General's probe of city continues | School heads look to formulate plan |
Article Rating
Reader Comments
The following are comments from the readers. In no way do they represent the view of bensonnews-sun.com.
Billie B wrote on Dec 3, 2008 9:08 AM:
" Everyone being gouged should file a complaint. Many people signed a contract with Blue Flame. When Ferrell took over they did not want to honor the previous contracts. The minimum use requirement is a rip off the hurts those that can least afford it. It make people use a set amount of gas of pay the extra fee. It should be outlawed. "
Teresa wrote on Dec 2, 2008 10:21 PM: