Beshear: Deadline for Kentuckians Involved in $150,000 United Propane Settlement

Andy Beshear

 Attorney General Andy Beshear announced today that Kentuckians benefiting from a recent $150,000 settlement with Paducah-based United Propane Gas Inc. will receive a letter and release form this week from his office outlining the process to receive a refund by check or credit on their propane gas bill.

The refunds range from 41 cents to $937.48. In order to claim the refund or credit, each of the 523 Kentuckians must return a release form to the AG’s office by March 25.

Examples of the letters and release forms sent to Kentuckians may be viewed here.

The settlement resolves alleged violations of the Kentucky Consumer Protection Act by Paducah-based United Propane Gas Inc. and its affiliates. As part of the agreement, United Propane Gas, headquartered at 4201 Cairo Road in Paducah, with offices throughout the state, agreed to strengthen customer protections.

Beshear said the agreement was reached following a lawsuit filed in 2014 and an investigation into the company’s business practices after complaints were made to the Office of the Attorney General and the Better Business Bureau of Kentucky.

“While these allegations are serious, a resolution was reached for the benefit of the customers,” Beshear said. “My office encourages each individual who received a release form in the mail to sign it and return it by March 25.”

According to the settlement, United Propane Gas had difficulty receiving and delivering propane during the 2013-2014 winter.

Initially, the Office of the Attorney General filed suit and obtained an injunction to force United Propane Gas to allow its customers who rent their propane tanks to receive fills from other propane companies. United Propane Gas, however, refused to honor its pre-pay contracts for a period of time, causing those consumers to pay soaring market prices.

Beshear’s agreement with United Propane Gas sets forth a requirement that the company remove a clause from its standard contract that, upon the occurrence of certain events, allowed it to raise customers’ prices without new notice and agreement by the customer.

United Propane Gas agreed to change its allocation of existing propane during a supply disruption and not to assess or collect fees that have not been disclosed to consumers.

Beshear said his office is committed to protecting Kentucky families and encourages Kentuckians who have a complaint regarding any business to file a consumer complaint with the Office of the Attorney General online.

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