Better data to forecast propane pricing changes and weather could have mitigated this winter’s unprecedented propane shortage and price spikes, though storage and transportation infrastructure could have played a role as well, senators said Thursday.
The winter was one of the coldest on record. Areas that rely on propane for heat, such as the Northeast and the Midwest, had some of the worst shortages and highest prices in decades, senators said at an Energy and Natural Resources Committee hearing on the propane shortage.
“Extreme weather and long winter demonstrate how weak and disjointed inadequate energy infrastructure can have real harmful consequences for millions of American families and our economy,” said Sen. Mary LandrieuMary LandrieuFive unanswered questions after Trump's upset victory Pavlich: O’Keefe a true journalist Trump’s implosion could cost GOP in Louisiana Senate race MORE (D-La.), the panel’s chairwoman. “These shortages last winter remind us that it would take significant investments in infrastructure to harness the full potential of this energy revolution.”
“We’ve got the pipeline capacity, but so much of this is an issue of timing,” said Sen. Lisa MurkowskiLisa MurkowskiTrump’s unconventional new guru for messaging GOP governors confront Medicaid divide GOP senator won't vote to defund Planned Parenthood MORE (R-Alaska), the committee’s ranking member. It’d be easier to prevent future shortages if the market and regulators could predict harsh winters, she said.
Sens. Al FrankenAl FrankenEducation's DeVos, unions need to find way to bridge divide and work together DeVos: 'My job isn’t to win a popularity contest with the media' Kentucky Dem lawmaker questions Trump's mental health MORE (D-Minn.) and Tammy BaldwinTammy BaldwinBuyer beware: Not all 'milk' is created equal A guide to the committees: Senate GOP loses top Senate contenders MORE (D-Wis.) asked for the hearing, as their states were hit particularly hard by the propane shortage.
Franken homed in on data shortcomings as the main reason for the problems.
“The Energy Information Administration had made some sort of projection as to the cost increase over the winter of propane, and it was like a very, very small projection,” he said. “So I think we have an issue of bad data or estimates that were given by DOE — through EIA — that discouraged the accumulation of supply.”
Melanie Kenderdine, director of the Department of Energy’s office of energy policy, made a similar conclusion.
“I’d say that EIA’s forecasts on price increases were off,” she said. “Weather forecasts were wrong as well.”