A nationwide shortage of propane has sent prices spiraling upward for Flathead Valley residents, but by and large the propane supply in Northwest Montana — though tight at times — seems to be holding out.

Gov. Steve Bullock last week outlined measures the state of Montana is taking to help families struggling with their power bills because propane has jumped to more than $5 a gallon in some areas.

One major local supplier of propane who asked not to be identified said his company hasn’t had to short anyone, but the supply was tight during the recent extreme cold snap. Western Montana is somewhat less affected by dire circumstances in other parts of the country because a portion of the local propane supply comes from Canada.

CHS spokeswoman Lani Jordan said logistics issues related to Canadian supply occurred in December and early January but have been alleviated in recent weeks.

“Our CHS locations in the Kalispell region have continued to provide dependable propane supplies to their customers,” Jordan said. “We have worked closely with our suppliers, logistics partners and customers to meet supply needs and reposition transportation resources whenever possible.”

East Valley resident Alex Bokor said he paid $3.92 a gallon for a propane supply delivered to his home on Wednesday by Northern Energy. He was told the price had been as high as $5.96 per gallon a week or two ago.

Bokur said he was stunned to see the price at close to $4 a gallon. He later checked with other suppliers and found somewhat lower prices, ranging from $3.09 to $3.40 per gallon. He said he generally has paid about $2.20 a gallon over the last couple of years and remembers prices as low as $1.90 a gallon.

Propane suppliers say prices have been a moving target in recent weeks. 

AmeriGas, which does business locally not only as AmeriGas but also as Bigfork Propane, Heritage Propane and Northern Energy, delivers propane to more than 2 million customers in all 50 states. AmeriGas spokesman Simon Bowman said the company currently is rationing deliveries to customers in a few service territories.

“Unfortunately we cannot comment on supply/pricing in local areas as the situation changes by the day,” Bowman said. “Nevertheless, we are working hard to alleviate these supply issues and ensure that all of our customers are taken care of.”

Bowman said three major factors have combined to create the current high prices.

First, wholesale prices of propane are up more than 50 percent compared to this same period last year.

Second, transportation costs are up dramatically due to a strained system of pipelines, rail, barge and transports that is struggling to get propane where it is needed as quickly as possible.

“There is only so much capacity to move product... and when demand is high, that capacity is constrained and costs increase,” Bowman said. “We have to drive farther to get the product, and often wait in line with other trucks to do so.”

Third, high demand for propane over the past month due to colder weather in many parts of the country has prompted a classic supply-versus-demand scenario.

NorthWestern Energy, the Flathead Valley’s supplier of natural gas, does not provide any propane service or have any retail propane sales in this area, spokesman Butch Larcombe said.

In the latest Agweek publication, CHS addressed the spike in propane fuel costs as it relates to the region’s farmers who heat with propane and will be faced with some residual grain drying costs this spring.

Drew Combs, vice president for CHS’s propane business unit, said propane inventory levels today are 40 percent lower than a year ago, according to the Agweek article by Mikkel Pates. As reasons for the tight propane supply, Combs pointed to a late corn harvest and drying season in several states and the infamous Polar Vortex that pushed bitter cold temperatures deep into the southern and eastern portions of the U.S.

About 13 percent of Montana households are heated by propane. It’s often a key fuel source in rural areas where natural gas is not available.

Gov. Bullock authorized a one-time 25 percent increase in benefits for households that heat with propane and qualify for the Low-Income Energy Assistance Program. The increase is an average additional benefit of $221 to those households.

Bullock also ordered the creation of an energy monitoring plan headed by the state Department of Environmental Quality Energy Assurance Team. The team will monitor the price and supply of propane throughout the state.

The governor issued an executive order temporarily suspending “hours of service” regulations for drivers of commercial trucks that transport propane in order to avoid delays in propane distribution.

National Propane Gas Association spokeswoman Mollie O’Dell told the Wall Street Journal last week she expects supplies to remain tight through the rest of the winter because the infrastructure to deliver propane to high-demand areas is insufficient.

The association website noted a Federal Energy Regulatory Commission order issued last week that extended the period during which Enterprise TE Products Pipeline Co. must prioritize propane shipments from seven to 14 days for shipments going from Texas to the Midwest and Northeast.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.