March 26, 2008

            LANSING − Attorney General Mike Cox today announced that he has reached an agreement with Inergy Propane, LLC (Inergy) that resolves claims of excessive pricing of propane. Earlier this month Cox filed a Notice of Intended Action (NIA) against Inergy for allegations of price gouging after receiving complaints from consumers. Consumers complained of being charged as much as $4.39 a gallon for propane.

            "I am pleased Inergy Propane worked with my office in order to resolve this matter quickly," said Cox. "Today's resolution will allow consumers an opportunity for refunds and an opportunity to work with Inergy Propane to secure propane at a locked-in lower price."

            Inergy has agreed to provide partial refunds or credits to eligible residential customers who had not entered into a "fixed-price" contract for propane with Inergy between November 1, 2007, and February 29, 2008. Inergy will also waive some of its customary fees for these customers.

            In addition, Inergy will offer capped or fixed-price contract options to all of its residential "non contract" customers for the time period of June 2008 through May 2009. Inergy indicates these contracts will be offered for less than $3 per gallon. The sign-up charge for these fixed contracts will also be waived.

            Inergy has pledged to take additional action to educate consumers about available payment plans that can help them avoid or minimize the effects of high propane prices. To learn more about payment plans and how to save on propane costs, see the Attorney General's Consumer Alert at http://www.michigan.gov/consumeralerts titled "Propane Gas − Understand Pricing Options and How to Lower Your Heating Costs."

            Complete terms of the settlement agreement ("Assurance of Discontinuance") are available on the Attorney General's website at www.michigan.gov/ag. Inergy has a number of retail facilities in Michigan which operate under "regional brand names," including Blue Flame Gas, DeCock Bottled Gas, Gaylord Gas, Lagasco Propane, McBride Oil & Propane, Northwest Energy, Pearl Gas, Petoskey Propane, Progas Propane, and Quality Propane.

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