You've Got Propane Pricing Options
At Lakes Gas, we offer a variety of propane buying programs to our customers in Minnesota, Wisconsin, Michigan, and South Dakota. Two of our most popular programs are the Pre-Buy program and the Budget program.
Lakes Gas Co. Offers Contract Choices - You Pick the Plan That's Right for You
- Contracts will be mailed automatically to everyone who contracted last year.
- If you did not contract last year, give your local office a call to discuss.
- Budgets will now run from June 1st through May 31st.
- You can roll over your current credits to a new agreement at this time.
Budget Propane Pricing Plan - Payment Schedule and Balances
- The budget propane price is the current discounted retail market price at the time of delivery. It is subject to move up or down with the market. We put a cap-not-to-exceed price in effect for upside protection on the market. Your budget is calculated at $0.15 per gallon over the current retail market propane price. The budget is divided into 12 payment periods, due the 10th of each month beginning in June, and designed to have a zero balance at the end of the agreement.
- During the budget year, if the company reviews a budget account and determines the monthly payment is not enough or too much for the gas usage, Lakes Gas Co. will, at its discretion increase/decrease the budget amount. If a budget customer fails to make monthly payments, Lakes Gas Co. can terminate the budget plan.
- Any credits at the end of the year can be rolled over into next year's agreement or refunded to the customer.
Prebuy Installment Propane Pricing Plan - Payment Schedule
- A 50% payment of the total amount is due at the beginning of the agreement. A second payment of 25% of the total amount is due in 30 days from the start of the agreement and the remaining 25% is due 60 days after the start of the agreement. If any payment is not received, the plan will be terminated and any credits on the account can be used for the purchase of gas sold at current retail market propane prices.
Locked Guarantee Propane Pricing Plan - Past Due Balances
- Failing to make the Locked Price payment within 30 days of delivery can terminate the Locked Plan. In this event, the company can convert any current credits toward the past due balance, and any future deliveries will be priced at current retail market prices.
Prebuy and Locked Guarantee Propane Pricing Plans
Termination of your agreement or discontinuing service with unused contracted gallons/credits
- If you terminate your Prebuy Agreement or discontinue service, Lakes Gas Co. will buy back the remaining gallons at the current wholesale rate.
- If you have more than 20% of unused contracted gallons, a penalty fee equal to 20% of your current credit balance will be deducted from the calculated buy-back amount.
- If you terminate your Locked Guarantee Agreement or discontinue service, you will forfeit any down payment.
- If you discontinue service with Lakes Gas Co., any credits or gallons not addressed by September 1st will be voided.
End of the Agreement
- If an AUTOMATIC DELIVERY CUSTOMER runs out of contracted gallons, it is the CUSTOMER'S responsibility to contact the office if they do not want any more deliveries.
- If there are not enough contracted gallons left to make a minimum delivery during the agreement period, a split ticket delivery will be made, and the additional gallons will be invoiced at the current retail market price.
- Any gallons remaining at the end of the agreement period May 31st, can be converted to dollars and rolled into next year's agreement.
All Propane Pricing Plans - Agreement Initiation
- This agreement is in effect as soon as a signed copy with the pricing plan identified is received by Lakes Gas Co. prior to the due date and the terms of the payment are met.
- If the signed agreement or payment terms are not received by the due date, the agreement price may be adjusted by Lakes Gas Co. due to market changes, or not accepted at all.
- The agreement will remain in effect until all gallons are delivered or until May 31st, whichever comes first.
- Any alterations to any pricing agreement will not be accepted.
- The prices quoted for the Locked Guarantee and Budget agreements do not include truck fees. Truck fees for the gallons delivered under these agreements will be charged separately.
Circumstances Beyond Our Control
Any failure to perform or any delay in performance of its obligations by Lakes Gas Co. under contract shall not be a breach of this contract if such failure or delay is due in whole or in part to any of the following (each, a "Force Majeure Event"): strike, lockout, civil disturbance, riot, war-like operation, invasion, sabotage, government regulations or controls, industry disturbance, equipment breakdown or failure (including power failure), act of God (such as inclement weather or natural disaster), fire or other casualty, or any other cause beyond Lakes Gas Co.'s reasonable control (including supply shortages or interruptions and/or transportation delays or interruptions).
Upon occurrence of any Force Majeure Event that interferes with Lakes Gas Co.'s ability to perform under this contract, Lakes Gas Co. will have the right to suspend its performance as long as reasonably necessary, and/or terminate this contract and declare the same null and void. Additionally, upon the occurrence of any event, such as a supply shortage or interruption and/or transportation interruption delay, that results in Lakes Gas Co. incurring non-standard expenses to continue to deliver product to its customers, Lakes Gas Co. reserves the right to assess its customers a pre-delivery surcharge, in an amount determined by Lakes Gas Co., to offset these additional expenses.
Contact our Sales Department today to learn more about our buying programs.
Buying Program FAQ
On the Budget Program you make monthly payments and the cost per gallon of your propane can fluctuate, up or down with the market but is guaranteed not to exceed the capped price. With the Pre-Buy Program you pay for your needed gallons up front and all deliveries are made at the pre-buy price until your contract has been fulfilled or expires.
Historically, customers save more money annually on the Pre-Buy Program. The pre-buy gallons are purchased at a fixed rate per gallon while budget customers price per gallon can go up and down with the market but does have a capped price.
If you have selected Automatic Delivery for your delivery type, you will continue to receive deliveries as our system shows you need them. You will be billed the market price per gallon at the time of the delivery. Customers must contact their Lakes Gas office to make any changes to their delivery type.
Our pre-buy program is open from May 1st until the end of October for our customers to purchase their propane for the upcoming year. Our largest pre-buy sales typically occur in July through August time frame.
We will help you calculate the number of gallons from the time of your purchase until the end of the heating season, March 31, based on your account's previous annual usages.