Oklahoma Propane Gas Association
Water Heater Rebate Update:
Water Heater Rebate Reduced by Oklahoma’s LP Gas Commission
Effective September 1, 2017, the Oklahoma LP Gas Research, Marketing and Safety Commission (LP Gas Commission) will reduce the rebate it offers for the purchase and safe installation of propane water heaters from $250.00 to $100.00. The reduction was unanimously approved by the LP Gas Commission’s Board of Directors at its last meeting on May 12, 2017.
Oklahoma’s LP Gas Commission was created on November 1, 1994, and the Water Heater Rebate Program went in to effect in 1996. Since then, Water Heater Rebates have been adjusted several times due to market conditions, finances, competition, etc. Water Heater Rebates were initially set at $150.00. Rebates peaked at $350.00 following the unusually long and cold winter of 2013-2014. In the 20 plus years the program has been in effect, the LP Gas Commission has paid approximately 20,000 Water Heater Rebates valued at approximately $4.5 million. However, with expenses increasing annually and with income virtually unchanged for more than two decades, the LP Gas Commission’s Board of Directors voted to reduce the Water Heater Rebate in order to help balance the budget and to avoid reductions elsewhere. Under Oklahoma law, the LP Gas Commission is funded by a one-half cent per gallon assessment on the first sale of odorized propane in Oklahoma including propane imported from out of state. Oklahoma’s assessment on propane has remained at one-half cent per gallon since the LP Gas Commission was created almost 23 years ago.
The adjustment in the Water Heater Rebate was the only substantive change approved during the May, 2017, board meeting. Oklahoma’s LP Gas Commission will continue paying a $50.00 rebate to replace out of date and/or faulty regulators. Oklahoma’s LP Gas Commission implemented the nation’s first Regulator Rebate Program in 1996. Initially, rebates were set at $30.00 although they too have been adjusted several times over the years. To date, Oklahoma’s LP Gas Commission has paid more than 40,000 rebates valued at approximately $1.5 million to replace faulty and/or out of date regulators in Oklahoma.
It is the purpose of the Oklahoma Propane Gas Association to promote this industry and to coordinate its activities to the end that OPGA may serve to the fullest extent possible the best interests of both the propane gas industry and the consuming public.
OPGA is and shall remain committed to increasing the effectiveness of gas service for light, heat, and power; to advancing the methods of manufacture, distribution, utilization, sales, and accounting relative to this industry; to advancing the public’s knowledge of, and appreciation for, the unique qualities of propane as well as its various and diverse uses; and shall encourage, now and in the future, economic advancement, safety, conservation and standardization within this industry.
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