Published: March 27, 2008 09:55 am         

Deal reached in propane pricing dispute

GAYLORD -- State Attorney General Mike Cox's office reached a deal with Inergy Propane and its affiliated companies that included rebates and credits to customers to resolve a pricing dispute.

Both state and company officials confirmed the agreement Wednesday.

The Kansas City, Mo.-based company was accused last month in a class action lawsuit filed in Crawford County of price gouging residential propane customers who did not have long-term fixed price contracts. Its holdings in Michigan include Blue Flame Gas, DeCock Bottled Gas, Gaylord Gas, Lagasco Propane, McBride Oil & Propane, Northwest Energy, Pearl Gas, Petoskey Propane, Progas Propane and Quality Propane.

State officials investigated the company's pricing policies and agreed to resolve the dispute by allowing Inergy to offer residential customers not already on fixed-price contracts the opportunity to get rebates or credits. Customers can also continue buying propane at a capped price of less than $3 per gallon from June through May 2009.

Those offers will be mailed to customers in the near future, company officials said.