Serving the Northwoods Communities of Rhinelander, Eagle River, Minocqua, Phelps, Florence and Forest County.

District Dialogue

January 27th, 2014

As your state representative, I wanted to make sure you had this important information regarding the propane shortage that I know is impacting many of your lives.  This morning, Governor Walker held a meeting with a number of state and industry leaders to discuss the propane shortage.  Below is a portion of the Governor's press release.  To read the full press release, please click here.

Governor Walker Orders Further Action in Response to Propane Shortage

Madison – After meeting today with representatives from the propane industry and state government officials, Governor Scott Walker instructed the Department of Administration’s Division of Energy Services to release an additional $7 million in energy assistance benefits, for a total of $8.5 million in additional funds, to help support low-income Wisconsin residents who use propane to heat their homes. The Governor also directed the Wisconsin Economic Development Corporation and Wisconsin Housing and Economic Development Authority to move forward with a combined $8 million in loan guarantee programs to help ensure propane dealers are able to obtain propane on the wholesale market and deliver it to consumers.

“Today, I met with state and industry leaders to determine if there are additional steps we can take to manage through the current crisis and help protect our citizens who rely on propane for heat,” Governor Walker said. “While we cannot produce more propane ourselves, I have directed additional funds be made available to help our most vulnerable citizens pay for the fuel they need and ensure propane dealers are able to obtain and deliver the supply we do have.”

Following today’s meeting, the Governor has:

-Directed the Department of Administration’s Division of Energy Services to release an additional $7 million in Crisis Benefits to counties and tribes that have households who use propane to heat their homes. The state will make funds available in anticipation of receiving additional federal Low Income Home Energy Assistance Program (LIHEAP) funds that were included in the recent federal omnibus budget bill. The $7 million released today is in addition to the $1.5 million that was released on January 24.

-Instructed the Wisconsin Economic Development Corporation (WEDC) to move forward with $5 million loan guarantee program. WEDC will provide loan guaranties to banks up to 80% of new or expanded lines of credit to propane dealers in Wisconsin. As wholesale prices rise in the Midwest, propane commercial retailers have exhausted their current lines of credit to meet their customer’s rising demand for propane. This program will require WEDC Board approval. An emergency teleconference meeting of the Board of Directors is scheduled for 1:30PM today.

-Directed the Wisconsin Housing and Economic Development Authority (WHEDA) to proceed with $3 million loan guarantee program. WHEDA will provide loan guaranties to banks of 50% of a total loan for dealers to purchase propane, but not to exceed $50,000 guarantee amount. This will require approval by WHEDA’s Members Loan Committee.

If you have any questions regarding this information, please give my office a call at 608-266-7141 or call toll-free at 888-534-0034.

Last fall, a combination of rain and a late corn harvest led to a larger amount of propane being used for drying.  Additionally, supplies from an Iowa / Minnesota pipeline were down for about a month.  Finally, as we all know, this winter has proven to be colder than most in recent memory.  All of these contributing factors have led to a propane shortage that is being felt around the Midwest. 

The propane shortage has significantly raised the price of propane.  Governor Walker and the Wisconsin Department of Transportation (DOT) have responded to help alleviate some strain.  Propane companies are now allowing more flexibility for their drivers to transport propane. Furthermore, the DOT permitted greater weight limits for trucks transporting propane. 

The Department of Energy Services suggests that consumers call their propane provider before their propane tanks are 30% or less full.  Keep in mind, it may take longer for the propane to be delivered, and this avoids the risk of completely running out. 

To visit the Department of Energy Services website for more information and tips, please click here.

For more information on Wisconsin Home Energy Assistance Program (WHEAP) please click here

Recently Governor Walker released a statement on the propane shortage, please click here to listen to his remarks.

Click here to read an article from the Lakeland Times that further outlines the extent of the propane shortage.

If you have any questions regarding this information, please give my office a call at 608-266-7141 or call toll-free at 888-534-0034.

What Citizens Can Do

1.Call the non-emergency number of your local sheriff’s department if you need the location of a local warming shelter or other local resources. As always, call 911 for an emergency.

2.Check on friends, neighbors and loved ones to ensure everyone has a warm place to stay.

3.Call toll-free1-866-HEATWIS (432-8947) for information about where you can purchase propane in your area, or to apply for assistance towards your propane heating bill.
To apply for heating assistance through the WHEAP program, go to www.homeenergyplus.wi.gov. Your local agency will determine eligibility for heating benefits based upon your household income, size, and the home’s heating costs. If you are eligible, the WHEAP program will make a payment directly to your fuel supplier towards the cost of your propane. These benefits are available through May 15, 2014. Your local agency will also determine if you are eligible for Crisis Benefits.

4.If you leave your home for an extended period, turn off the water and drain your pipes to ensure they pipes do not freeze in your absence.

5.If you need assistance with your pet, please call your local warming shelter/human services agency as some warming shelters also offer pet shelter.
6.Please donate to the Keep Wisconsin Warm Fund (KWWF) to help those impacted by the crisis. Credit card donations accepted:
a. Online at www.kwwf.org/donate
b. By phone at 608-333-0809
 

Please contact me at Rep.Swearingen@legis.wi.gov if you would like to UNSUBSCRIBE from my E-Updates

Office of Representative Rob Swearingen

Room 107 West

PO Box 8953, Madison WI 53708

Office: 608-266-7141

Toll Free: 888-534-0034