History

This details how we got started.  While it may or may not be interesting for the casual viewer, it's purpose is primarily to clarify our current program to members.

The Beginning

Ray moved into a new home in late 2002.  Having a 500-gallon tank, he bought around the supply and demand peaks of the winters of 2002-2003 and 2003-2004, but knew there had to be a better way of purchasing propane.  He was wasting too much time shopping for prices and trying to anticipate when to buy around the peaks.

For the winter of 2004-2005, he had a plan.  He called 4 of his friends, and asked them to allow him to negotiate their propane price for the winter and to agree to whatever he did;  all 4 agreed.  He contacted several propane companies about locking in a winter price for the 5 of them as a group, and the Propane Club was born.

We entered our 5th year with about 100 members, including two large camps and Willie's Place, consuming about 270,000 gallons of propane annually.

How it Worked

Most of the details of the plan are available here.  What seems to be confusing is the timeframe.  During the 2004-2005 and 2005-2006 years, the discount was available from September - March.  The reason was because we were trying to lock-in the winter months when propane was higher, but didn't want to be locked in if the price dropped considerably the next summer.

Because propane was staying high later in the season, we extended the lock-in period through May for the 2006-2007 year:

2007-2008 seems to be the confusing year.  Because a lot of people missed the 8/31 deadline, HILCO Propane allowed us to run a $2 "late" special (2nd line).  This was at Ray's request, to try to get more members.  Of course, the cheap propane purchased for the club was no longer available, hence the $2.00 price instead of $1.50.

When HILCO Propane said they didn't want to lock-in yet, because of the volatility of the propane market, a "Cost Plus" program was implemented for 2008-2009.  That program will become a "locked discount" program as soon as the market allows, and will guarantee a minimum of 50 cents savings per gallon compared to their retail price.

Because some of the customers (mainly commercial) need propane in the "open market" months, Ray requested the program be extended through the middle of August, and that it be implemented immediately, instead of waiting for the next year.  HILCO agreed.

Currently

This is what 2008-2009, and subsequent years, should look like: