Understanding Propane Minimum Use Fees
Some homeowners throughout Virginia and North Carolina love the comfort of LP gas, but don’t consume enough fuel each year to meet Hall’s minimum annual usage requirement. Customers must use at least 150% of their tank’s usable fuel capacity annually to avoid a minimum-use fee. This is one reason many homeowners choose to add LP gas appliances like tankless water heaters, which increase propane usage while improving comfort. Our minimum-use fee is not the same as a tank lease. Tank leases are paid every year regardless of fuel usage. Hall customers pay no fee if they use the minimum fuel amount per year.
This fee isn’t a penalty. It’s simply how Hall covers the expense, maintenance, property tax and insurance on propane tanks used at customers’ property. Tanks and other propane-related equipment are much more expensive than most customers realize, costing $1,000 – $5,000 per site depending on tank size.
Minimum use fees can be avoided by:
- Purchasing your own tank
- Downsizing your tank
- Expanding your propane usage with an additional propane appliance