Governor's second propane summit aims to assess supply, mitigate shortages and price hikes

ST. PAUL, MN - For more than 200,000 households in Minnesota, propane is the primary source of heat. With winter steadily approaching, Governor Mark Dayton is reconvening stakeholders today in Saint Paul to discuss the current propane supply and any factors that could impact demand for heating fuel this winter.

After an unprecedented propane shortage last winter, Governor Dayton is convening today's propane summit in a proactive effort to help mitigate propane supply shortages in the winter months ahead. The Governor will be joined by representatives from the propane, agriculture and rail industries as well as his Commissioners of Agriculture, Commerce, Pollution Control, and Transportation for the discussion.

"During last winter's propane shortage, this group worked to ensure the safety of all Minnesotans," said Governor Dayton, who first convened propane stakeholders and state regulators last January. "Working together in the months ahead, they will do everything possible to prevent shortages, reduce drastic price increases, and provide all Minnesotans with fuel for the fall harvest and for their winter comfort and safety."

According to the U.S. Energy Information Administration, as of August 9, propane supplies in the Midwest were 1.9 million barrels higher than last year, but still 1.6 million barrels below the five-year average. Despite these increased supplies, Governor Dayton has expressed concerns to the federal Surface Transportation Board about the transport of those supplies and farm products to Minnesota residents and businesses given the backlog on the state's crowded railways.

Today, the Governor pledged to continue working in the months ahead with the propane industry, railroad companies, the federal government, Minnesota's congressional delegation, and neighboring states to ensure Minnesotans who need propane this winter, have access to it at a reasonable price.

Learning from Last Winter's Propane Shortage
Last winter, Minnesota experienced a serious propane shortage that impacted families, businesses, and farms across the state. The shortage resulted in propane rates that were almost four times the normal rate, making propane unaffordable for thousands of Minnesotans during the coldest winter on record in nearly 30 years.

In addition to the weather, a number of factors played a role in the creating a propane shortage, from transportation issues to an unusually wet harvest season, requiring farmers to use large amounts of propane to run heaters that would dry their crops.

Throughout the propane crisis, Governor Dayton and his administration undertook numerous efforts to relieve the shortage, increase the supply of heating fuels in our region and provide financial assistance for Minnesota families. Those efforts included:

• Expanding Eligibility for Heating Assistance - Governor Dayton and the Legislature expanded access to heating assistance during the 2014 Legislative Session. This provided 120,000 more Minnesota households access to the financial assistance they needed to heat their homes during the winter months.
• Propane Shortage Hotline - The State of Minnesota established a toll-free hotline that Minnesotans affected by the propane shortage could use to ask questions or seek assistance during the propane crisis. During the shortage, thousands of Minnesotans contacted the hotline to ask questions and access propane supplies in their communities.
• Cooperation with Other States - Governor Dayton worked with Texas Governor Rick Perry to waive trucking restrictions in the State of Texas - an action that has helped increase the flow of propane to Minnesota and other Midwestern states.
  
• Coordination with the Federal Government - Governor Dayton joined Minnesota's congressional delegation to urge the Obama Administration to help, resulting in President Obama easing regulations to improve the transport of heating fuels into Minnesota.
• State of Emergency - Governor Dayton declared a Peacetime State of Emergency in Minnesota. This activated the Minnesota Emergency Operations plan, coordinating response efforts across all agencies of state government and helping local governments respond and recover from the emergency. The Governor's Order also put the National Guard on alert to provide assistance to ensure the safety of all Minnesotans.
• Protection from Price Gouging - Governor Dayton directed the Minnesota Department of Commerce to use its consumer protection authority to help guard Minnesotans from potential price gouging activities.