2020 Propane Distribution Price Caps

House Bill 2532 relating to the regulation of propane distribution system retailers was passed during the 83rd regular legislative session (2013).  The bill applies to systems that supply propane through a contiguous piping system to at least 10 customers; it does not apply to the retail or wholesale sale of propane. The bill established standards for distribution system retailers who supply propane to residential or commercial end users, bringing those entities under the ratemaking jurisdiction of the Railroad Commission.  In addition, the bill prohibits the disconnection of service under certain circumstances.  The Commission has established a toll-free number, 1-877-228-5740, for customers to report such service interruptions.

2020 Allowable Spot Prices

Allowable Spot Price
Allowable Markup
Maximum Price
per Gallon
Maximum Price
per Cubic Foot
 January 0.515 1.632  2.15  0.0590
 February 0.463  1.632 2.10  0.0575
 March 0.413 1.632  2.05 0.0561 
 April 0.344 1.632 1.98 0.0542 
 May 0.310 1.632  1.94  0.0533 
 June 0.372 1.632  2.00  0.0551 
 July 0.457 1.632 2.09 0.0574
 August 0.494 1.632 2.13 0.0584
 September 0.499 1.632 2.13 0.0585 
 October 0.501 1.632 2.13 0.0586
 November 0.511 1.632 2.14 0.0589
 December 0.536  1.632  2.17 0.0595
  1. For a customer's bill that contains days in more than one month, the month with the most days covered by the bill shall be considered the billing month (TEX. UTIL. CODE §141.003(a)).

  2. Allowable Spot Price is the average Mont Belvieu, Tx Spot Price for the two months preceding the billing month. The Mont Belvieu, Tx Spot Price is obtained from the U.S. Energy Information Administration (EIA) (TEX. UTIL. CODE §141.001(2)).

  3. Allowable Markup is the two-calendar-year rolling average of the differences between the monthly EIA retail prices per gallon reported during the two calendar years immediately preceding the calendar year in which a billing month occurs and the corresponding spot prices per gallon reported for the same month an EIA retail price was reported during those two calendar years (TEX. UTIL. CODE §141.001(1)).

This page was last updated on: Thursday, January 12, 2023