An Act relative to the protection of propane gas ratepayers

194th Legislature (2025-2026) Introduced by Colleen Garry and 1 co-sponsor

Propane sellers must provide written contracts with all terms and itemized fees, prohibit automatic renewals without 30-day termination rights, and display daily residential price

Summary: An Act relative to the protection of propane gas ratepayers (HD 721)

Purpose

The bill aims to increase transparency and protections for residential propane gas customers in Massachusetts. It seeks to ensure clear contract terms and public access to daily propane pricing to enhance consumers’ ability to compare costs and understand charges.

Key Provisions

Contractual Transparency (writing requirement)

Any contract or agreement for the sale of propane for residential heating must be in writing and include all terms and conditions for delivery.
The contract must provide an itemized list of all fees, charges, surcharges, or penalties.

Automatic Renewal Restrictions

No automatic renewal clause is allowed unless the consumer has the right to terminate any future automatic renewal.
Termination rights must be exercisable by written notice given at least 30 days prior to the renewal date.

Price Transparency (daily delivery price)

Propane dealers must make the daily delivery price for residential heating customers available in a clear and conspicuous manner.
If the dealer operates a website serving Commonwealth customers, the daily price must be clearly and conspicuously displayed on the website.

Effective Date and Scope

Effective Date: The act provides for its own effective date as January 1, 2025.

Application/Scope: Applies to contracts or agreements for the sale of propane (and any renewals) entered into on or after January 1, 2025.

This aligns with a broader consumer-protection framework for propane pricing and contract terms.

Who is Affected

Propane gas dealers operating in Massachusetts, particularly those serving residential heating customers.

Residential propane customers who enter into propane supply contracts or receive daily pricing information.

Practical and Potential Impacts

Dealers will need to ensure written contracts include all terms and an itemized fee schedule.

Dealers must avoid automatic renewals without explicit termination rights and must provide a 30-day termination notice option.

Dealers with websites must display the daily propane price clearly for MA customers, potentially prompting website updates and pricing transparency.

Expect increased pricing transparency and consumer protections in residential propane transactions, with possible administrative or compliance considerations for dealers.

Context

The bill references similar prior legislation (Senate No. 2122 from the 2023-2024 session) and is filed as House Bill No. 3518 in the current session, introduced by Rep. LeBoeuf (and Colleen Garry). It is categorized under Telecommunications, Utilities and Energy.