October 1, 2018
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. Only Amerigas offered an agreement for a low group rate. The agreement was finalized late in February 1994. The agreement with Amerigas was renewed every five years. The latest renewal for Amerigas San Jose was signed in May 2014, and will be in place until 2017.
In May 2008 SSA entered into an agreement with Kamps Propane and with Suburban Propane to offer a SPUG price to SSA members. FerrellGas entered into an agreement with SSA in October 2013 to offer a SPUG price to SSA members.
Propane companies buy gas wholesale from refineries at the market rate which fluctuates with supply and demand (up in winter, lower in summer). Our group rate with Amerigas, and Kamps Propane is based on the wholesale price, the Targa Bay Area posting, plus a mark-up. Prices may vary almost daily, but SSA only posts the SPUG price at the beginning of the month.
The agreements are for regular route deliveries on a keep-full basis. There is no sales tax on propane for qualified users (residential use) who file a Certificate of Exemption. Contact your propane supplier for details. Unless a SSA member has a special payment agreement with the propane company, invoices must be paid when due. Overdue accounts will not have the benefit of the SPUG price.
Amerigas/San Jose and Half Moon Bay offers new customers free tank installation which includes regulator, pig tail and the first year tank rental. Automated delivery should insure that you do not run out of propane. A 24 hour Emergency Call Center is staffed with fully trained Amerigas employees. Amerigas will give seniors (55 and older) an additional discount of $0.02/gallon. Please notify them if you qualify. Phone 1-800-660-1252
Kamps Propane offers a monitoring system to insure that you will never run out of propane. One device will be attached to your tank, and the other device will be attached to your phone. The connection between the two devices is wireless. During the night, say 3-4 am, your phone will send a message to Kamps Propane reporting on the level of propane in your tank. The monitoring system is questionable when attached to a cell phone. Kamps Propane will also do a switch out at no charge, first year’s tank rental is free, and we will also pump over the remaining propane from their current supplier’s tank at no charge. We do not make them wait until they are at 10% before we can change out the tank. Contact Kamps Propane at 1-800-795-4GAS to set up the switch-over. (1-800-795-4427)
Suburban Propane offers SSA members an attractive propane price. The rental charge for tanks less than 1000 gallons is $60/year. First year tank rental is free, and subsiquent years rental is $60. For the Scotts Valley office for Suburban Propane phone 831-438-2004.. For the San Jose office of Suburban Propane phone 408-227-8464. Suburban Propane has an after hours call center staffed 365 Days a year by Suburban Propane personnel. In addition you can always call 1-800-PROPANE to reach them.
Ferrellgas now has signed an agreement with SSA to offer a SPUG price to SSA members. FerrellGas is an employee owned company. Phone 831-227-6567. They offer 24 hour emergency services, tank setup, existing fuel transfer, safety inspection and pilot lighting at no extra charge. Special rates for tank rentals: 250-325 gallon tank leased for $45/year, 499-500 gallon tank leased for $50/year, 1000 gallon tank leased for $75/year.
Contact the propane company you wish to have serve you to make sure they serve the area where you live.
To join the Skyline Propane Users Group, send an email to __. SSA will then confirm to the propane company that you chose that you are a SSA member. The propane company will then invoice your account at the SPUG rate.
To arrange to switch service to a new propane company, let us know so we will help arrange for the switch over of tanks. The propane level of your present tank should not be over 10% full at the time of change-over. During the winter rainy months customers must allow a longer lead-time for service. Propane from your present tank will be transferred to the new tank.