HUDSON – A Saratoga County-based fuel and propane cooperative that serves home heating customers in the Capital Region announced it is now offering Columbia County residents propane at a discount price.
Galway Cooperative founder Michael Casadei announced Tuesday the company signed with Ferrallgas at 31 Falls Industrial Park in Hudson, to offer propane to members of its cooperative at wholesale prices. Ferrallgas is the second largest propane supplier in North America behind Pennsylvania-based Amerigas Propane.
Members pay a $35 annual fee to the co-op. The fee is waived for people age 65 and older and active duty U.S. military service members.
The co-op charges a few cents over the spot price per gallon. The spot price is the amount the distributor charges for propane per gallon each day, Casadei said.
On Tuesday, the spot price was 96 cents per gallon and, if the customer was filling a tank of 1,500 gallons, he or she would pay 35 cents above the spot price per gallon as part of membership in the co-op, Casadei said.
The typical customer uses between 700 and 1,500 gallons per year, and typically rent, instead of owning, their propane tank, Casadei said.
“The cost [for our customers] would be on average $1.82 per gallon, and what are they saving is probably about $1.25 a gallon, if not more,” Casadei said.
The spot price is updated daily at galwayco-op.com.
“We publish the spot price 24-7, and our members can look at the spot price and how much they can purchase the propane for,” Casadei said. “A person’s annual usage is what would determine what their cost is going to be over the spot price.”
When Casadei founded the co-op in 2006 in Galway in Saratoga County there were 15 members. Since then, the co-op has grown to more than 15,000 members, in counties as far north as Essex County, east as Herkimer and south as Dutchess, Casadei said.
“There are a number of different propane distributors nationally and locally that offer propane and they can charge whatever they want,” Casadei said. “Distributors can change price of their product without notice or explanation. I didn’t think that was fair, so I decided to come up with a system with some time of conformity.”
More than 2,800 homes that use propane as a primary heating source in Columbia County, according to American Community Survey’s 2013-2017 five-year estimates. The estimate does not include the number of homes that might use propane in Columbia County as a secondary or back-up source of heating or other end-usage.
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