WASHINGTON - Sen. Chuck Grassley of Iowa today asked the Federal Trade Commission (FTC) to review the conditions that have led to propane cost spikes in Iowa.
"The recent propane supply shortage and price increases are causing hardship for the many rural Iowa families that use propane to heat their homes," Grassley said. "I'm asking the agency that oversees business practices to look at the propane situation and see whether the price increases are legitimate or manipulated in any way to consumers' detriment."
In the meantime, Grassley encouraged anyone who may be eligible for federal heating assistance to contact the Iowa Bureau of Energy Assistance for more information.
Grassley's letter to the FTC is available here. The text is copied below.
January 23, 2014
The Honorable Edith Ramirez
Chairwoman, Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
Dear Chairwoman Ramirez:
I am writing to inquire about the Federal Trade Commission's oversight of the propane market in the Midwest.
In recent days, the Midwest spot price of propane at Conway, Kansas, has spiked far above the Gulf Coast spot price at Mont Belvieu, Texas. I recognize that in the fall, the demand for propane to dry the large, wet corn harvest was significant. In addition, the Midwest has experienced increased demand for propane due to the current cold weather. However, the price for propane at Conway has surpassed the spot price in Mont Belvieu by as much as several dollars. Many of my constituents have questioned this considerable price differential. Moreover, in just the past few days, the spot price for propane in the Midwest has doubled.
I request that the Federal Trade Commission remain vigilant in overseeing the propane market to prevent possible anti-competitive behavior or illegal manipulation, and to ensure that any supply shortages are not created artificially. I look forward to hearing the results of your review of the propane market in the Midwest.
Sincerely,
Charles E. Grassley
United States Senator
Cc: The Honorable Eric Holder
Attorney General of the United States
The Honorable Ernest Moniz
Secretary of Energy
The Honorable Mark Wetjen
Acting Chairman, Commodity Futures Trading Commission
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