Price Protection Programs
Our Market Prices are before any applicable Price Protection Programs are taken into account. For example, the table below shows the Price Plans and prices that were available to Customers through most of September. If you are a customer enrolled in one of these programs, these are the prices that will be applied to your deliveries.
If you are not a current customer please note:
Our enrollment period for Winter 2021-2022 Price Protection programs has concluded with one big exception:
Become a leased tank customer and you will be provided complementary price protection for $2.75 this winter. That means you will be charged our value-priced market price, but never more than $2.75.
Please note that this price is subject to change without notice. If you are interested in becoming a leased tank customer to take advantage of the Price Cap protection, we urge you to apply quickly while both pricing and supplies last.
Following are the prices that our current customers were able to secure for the upcoming Winter 2021-2022 season by either enrolling before September 6 or by being an active leased tank customer on September 28:
What is a Price Protection Program?
Wall Street calls them hedges and then gives them confusing names like futures, calls, puts, collars and swaps. On main street and at Caywood Propane we call them what they are: Price Protection Programs. These programs protect you from large fluctuations in propane prices. During the winter of 2014, for example, the average price of propane in Michigan spiked to $3.18/gallon; it had been $1.99 at the same time the year before. Customers who participated in our Price Protection Program that year paid $1.68. We are very concerned about winter 2021-2022 supply. We strongly urge all of our customers to participate in a Price Protection Plan this year.
What are the kinds of Price Protection Programs?
We have three kinds of Price Protection Programs:
Level-Pay Plan: This new program is a lot like our pre-paid Price-Cap Program, except you get to pay for your propane in monthly installments year-round. You make the payments, we deliver propane at the market price at the time of delivery or $1.79 (plus tax), whichever is lower. This price is eligible for auto-fill and auto-pay discounts.
Fixed Price: You pay us $1.69/gallon plus sales tax and we deliver propane to you at that price until March 31 or when you run out of Fixed Price gallons, whichever comes first. This price is not eligible for discounts because they already are built into the price.
Price-Cap Price: You are charged the lower of our Market Price or the Capped Price at the time of delivery. For example, if the your Market Price is $1.50 and the Capped Price is $1.89, you pay $1.50 plus sales tax. However, if our Market Price is $1.99 and the Capped Price is $1.89, you pay $1.89 plus sales tax. We will deliver propane to you under this program until March 31 or when you run out of Market Capped gallons, whichever comes first. This price is eligible for auto-fill and auto-pay discounts.
When do I pay for these programs?
Level-Pay Plan: Payments begin on the day of the month selected by you. The amount you pay is based on your historical consumption or a consumption amount we agree on with you. The intent of the program is to budget just the right amount of dollars to keep your tank filled throughout the year, especially during winter.Your payments are based on a capped price of $1.79 plus sales tax, and you are eligible for the Auto-Fill and Prompt-Pay Discounts, which currently total $0.08/gallon. Additional payments will occur only if your usage is greater than expected, you fail to make payments, or you need a delivery before the credit balance on your account is sufficient for a minimum delivery. The need for additional payments almost never occurs.
Fixed Price: Payment is due at the time you sign up for the Fixed Price Program. The minimum purchase is 500 gallons. The purchase period typically runs from about July 1 until Labor Day. The Fixed Price for winter 2021-2022 is $1.69/gallon plus sales tax. Prices are subject to change until you sign up for the program.
Market Capped Price: There are three ways to pay for this Program:
- Leased Tank: If you lease a tank from us participation in the Market Capped Program is complementary. Just pay for the gas plus tax under the credit terms that apply to you. The Market Capped Price for winter 2021-2022 is $1.89/gallon plus sales tax for current Customers as of September 6. New Customers are subject to the Price Cap in effect at the time of enrollment.
- Pre-Pay: Payment is due at the time you sign up for the Market Capped Program. The minimum purchase is 500 gallons. The purchase period typically runs from about July 1 until the and of August. The pre-pay Market Capped Price for winter 2020-2021 is $1.79/gallon. Prices are subject to change until you sign up for the program.
- Coverage Fee: You pay a non-refundable coverage fee of $0.10 per gallon at the time you sign up. The minimum purchase is 500 gallons. The purchase period typically runs from about July 1 until the end of August. The Market Capped Price for this program is $1.89/gallon. The Capped Price is subject to change until you sign up for the program.
When does the 2021-2022 winter enrollment period begin?
Level-Pay Plans: The enrollment period is ongoing. Payments begin on the day of the month selected by you.
All Other Plans: The enrollment period ended on September 6. Enrollment for the 2022-2023 program will begin as early as April 2022 and no later than July 1, 2022. It will end on Labor Day 2022.