1. 1 FFY2015 EAP Annual Training August 12 & 13, 2014 St. Cloud Propane Legislation & EAP

2. FFY2015 EAP Annual Training August 13 & 14, 2014 2 Context  Background  Sharing for the purpose of a few; most energy vendors will not need changes in their business  EAP is not an enforcement entity  Value partnerships and collaboration to best serve HHDs  Midwestern Governors Association Propane Workgroup  Vendor Chapter and Agreement both reference law Propane Legislation

3. FFY2015 EAP Annual Training August 13 & 14, 2014 3 Minn. Stat. §216B.0992 Price and Fee Disclosure Propane Distributors must have a price and fee list: 1.) made available to the general public upon request; and 2.) provided to new customers before residential heating service is initiated.  Used to be requested along with the EAP agreement  EAP agreement now mimics this language, and states that it is to be provided upon request Propane Legislation

4. FFY2015 EAP Annual Training August 13 & 14, 2014 4 Minn. Stat. §216B.0993 Budget Payment Plan Propane distributers offering budget payment plans to HHDs: (a)must make same plan available to all customers, including EAP HHDs. (b) must divide estimated annual propane bill into equal monthly payments. Plans started after traditional start date, are pro-rated. HHDs may request end of year credits in cash or leave it on account for future deliveries. (c) must notify HHDs of price or fee changes that may affect monthly payments by 20%. (d) may alter or terminate the plan if HHD fails to pay two monthly payments during period of the plan. However, parties can enter into a mutually agreeable plan. Propane Legislation

5. FFY2015 EAP Annual Training August 13 & 14, 2014 5 Minn. Stat. §216B.0994 Propane Purchase Contracts A propane distributor is prohibited from adding fees to bills for HHDs with pre-buy contracts or set pricing of propane for the period of the contract as long as: (1) the HHD has met all contract obligations; and (2) the propane distributor can obtain product and a force majeure (event out of their control) has not been declared by the propane distributor's supplier. Propane Legislation

6. FFY2015 EAP Annual Training August 13 & 14, 2014 6 Minn. Stat. §216B.0995 Terms of Sale Cash sales. A propane distributor with an available supply of propane must not refuse to sell propane to a customer who: (1) pays upon delivery; or (2) receives energy assistance from EAP, a governmental or private agency that has funds available to pay for a delivery. LIHEAP participation; delivery. A propane distributor participating in EAP must provide, upon HHD request, EAP information, including income eligibility and SP contact info. Third-party credit disclosure. A propane distributor must not share names of delinquent customers to other propane distributors, except in routine credit checks. Propane Legislation

7. FFY2015 EAP Annual Training August 13 & 14, 2014 7 Minn. Stat. §325E.027 Discrimination policy Dealers and distributors of propane gas or number 1 and 2 fuel oil who had has signed an EAP vendor agreement may not refuse to deliver to any an EAP HHD located within their normal delivery area if: (1) the person has requested delivery; (2) the dealer or distributor has product available; (3) the person requesting delivery is capable of making full payment at the time of delivery; and (4) the person is not in arrears regarding any previous fuel purchase from that dealer or distributor. Propane Legislation

8. FFY2015 EAP Annual Training August 13 & 14, 2014 8 Continued - Minn. Stat. §325E.027 Discrimination policy A dealer or distributor making delivery to a person receiving EAP grants may not charge that person any additional costs or fees that would not be charged to any other customer. And, must make available to that person any discount program on the same basis made available to any other customer. The commissioner of commerce may enforce this section. Propane Legislation

9. FFY2015 EAP Annual Training August 13 & 14, 2014 9 SPs notify DOC with complaints/concerns of propane distributors:  Not providing the public price lists.  Not providing budget plans to EAP HHs (if offers to others).  Failing to notify budget plan customers of price or fee changes >20%.  Refusing EAP HHD delivery when funds are available for delivery.  Failing to make EAP information, including income eligibility and contact information available to customers.  Adding service fees to pre-buy contract customers when not allowed.  Discriminating against EAP HHs as explained in law. DOC EAP will send reports to DOC enforcement. More information is better. Propane Legislation

10. FFY2015 EAP Annual Training August 13 & 14, 2014 10  What worked?  What didn’t?  General Comments Debriefing Propane Response