The Skyline Propane User's Group (SPUG) was set up for the
benefit of members of the South Skyline Association. SSA covers the
area of Skyline Boulevard and feeder roads from Skylonda to Black Road.
In 1993 SSA began investigating a way to reduce propane costs by
conducting a survey of our members. We asked who the propane companies
were that served our area, and what their propane rates were. This
formed the basis of our effort. We contacted all the propane companies
serving the SSA area: Amerigas, Proflame, Northern Energy, Suburban
Propane, Dassel's, and American. Amerigas offered the best combination
of a low group rate and low tank purchase price for those wishing to
purchase a tank. Because our survey revealed that there were complaints
about service with all of the propane companies, the decision to choose
Amerigas was based on price alone. The agreement was finalized late in
February 1994. The contract with Amerigas was renewed in April 1999
effective for the next five years.
Propane companies buy gas at wholesale from the big suppliers at the
market rate which fluctuates with supply and demand (up in winter, lower
in summer). The wholesale rate, called the Warren posting, is published.
Our group rate is based on the wholesale cost to Amerigas plus a markup
of $0.559/gallon, for regular route deliveries on a keep-full basis.
Amerigas also offers a senior discount (for customers 55 and older) of
$0.05/gallon.
SPUG members south of Skyline Blvd. on highway 9 are served by the Scotts Valley Amerigas
office, and are charged 6 cents more than the above price to compensate for additional
transportation charges.
With this agreement, Amerigas offers the first year's tank rental free.
They will change your service from the tank rented from your former
supplier to an Amerigas tank. There is a charge for the pigtail and new
regulator. The annual rental rate (after the first
free year) is listed in the following table.
SPUG Tank Rental
Prices
| Tank Size |
Annual Rental |
| 172 gallons |
$40 |
| 288 gallons |
$60 |
| 499 gallons |
$80 |
The following table lists the group rates for purchasing a tank.
SPUG Tank
Purchase Prices
| Tank Size |
Installed Price* |
| 250 gallons |
$699 |
| 500 gallons |
$999 |
| 1000 gallons |
$1599 |
* There is an additional charge for a regulator and pigtail.
You can join SPUG by becoming a member of SSA. Fill out the membership application and sending the
completed form and annual dues of $15.00 to the SSA Membership
Chairperson.
SSA Membership Chairperson
22400 Skyline Boulevard
Box 35
La Honda, CA 94020
After you send in your membership, phone Amerigas (1-800-660-1252) and
ask to be included in the Skyline Propane Users' Group. Amerigas will
arrange the changeover of tanks. They ask that the propane level of
your present tank be about 10% full in spring, summer, and fall,
and about 20-30% full in the winter at the time of changeover.
Propane from your present tank will be transferred to the new tank.
We'd like to keep track of the number of SPUG members, so if you decide
to join SPUG, please send an email to
propane@southskyline.org
or notify the SSA Membership Chairperson:
SSA Membership Chairperson
22400 Skyline Boulevard
Box 35
La Honda, CA 94020
