Report shows Midwest consumers spent $561 million more
than in previous winters
Klobuchar passed legislation recently signed into law
to help better address future propane shortages, calls for continued work as winter
nears
WASHINGTON, D.C. – U.S. Senator Amy Klobuchar (D-MN), Vice Chair of the U.S. Congress Joint Economic Committee, today released a report examining the impact propane price spikes have on the economy.
Last winter the price of propane doubled to more than $4 per gallon in the Midwest, and remained high for an extended period of time.
The report found that last winter’s price spikes had a major financial impact on families in the Midwest, and Minnesota in particular. Compared with the average amount of money spent on propane during the previous five winters, Midwest families spent $561 million more in the winter of 2013-14.
“My report confirms what so many Minnesota families and businesses felt firsthand last winter: the propane shortage had significant financial consequences,” said Klobuchar. “Minnesotans rely heavily on propane to keep warm during the brutally cold winter months. That’s why I worked with Sen. John Thune to pass bipartisan legislation to help address future shortages, and I will continue to work to make sure this vital energy source is readily available for consumers.”
The report found:
- Minnesotans spent $71 million more on propane in the
winter of 2013-14 compared to the average of the previous five winters. Only
Michigan residents had a bigger increase in the Midwest. - 91.7 percent of houses heated with propane in the
Midwest are in rural areas, which are unlikely to have access to natural gas
distribution systems. Nearly half of households using propane for heating earn
less than $50,000. - While only 4.8 percent of U.S. households use propane
to heat their homes, 10.2 percent of homes in Minnesota, Iowa, Missouri,
Nebraska, North Dakota, South Dakota, and Kansas use it for heating.
The full report can be found here.
Since the propane shortage hit last winter, Klobuchar has taken several steps to bring relief to Minnesotans. She passed bipartisan legislation with Senator John Thune that was recently signed into law to allow governors greater autonomy to declare emergencies and require the Energy Information Administration to provide early warnings to governors if the inventory of residential heating fuel falls below recent averages. She also crafted legislation to make it easier to transport propane to communities impacted by the shortage, which was signed into law earlier this year. During the height of the propane crisis, Klobuchar also successfully pushed the Federal Energy Regulatory Commission to prioritize propane shipments
Klobuchar became Senate Chair of the Joint Economic Committee (JEC) at the beginning of the 113th Congress. The JEC is a bicameral Congressional Committee composed of ten members from each the Senate and the House of Representatives. There are ten Democrats and ten Republicans on the Committee. The main purpose of the JEC, which was established by the Employment Act of 1946, is continually study matters relating to the US economy. The Committee holds hearings, performs research and advises Members of Congress.
###
