WHIPPANY, N.J., June 16 /PRNewswire-FirstCall/ -- Suburban Propane Partners, L.P. (NYSE: SPH), a nationwide distributor of propane, fuel oil and related products and services, as well as a marketer of natural gas and electricity, today announced that as part of a settlement with the New York State Attorney General, its operating subsidiary, Suburban Propane, L.P., has agreed to issue a one-time credit to approximately 22,000 residential propane customers in New York State who may not have received sufficient advance written notice of tank rental fees on Suburban-owned propane storage tanks during the period May 1, 2008 through March 31, 2009. The credit will be in an amount equal to one-third of the annual tank rent charge paid by the customer.
Affected customers need not take any action to obtain the credit. Suburban Propane will be notifying eligible customers by mail that they will be receiving a credit to their account by September 7, 2009. The credit will automatically be applied by Suburban Propane to any outstanding or future balances of eligible customers until fully utilized.
In conformance with applicable law, Suburban Propane's policy is to give customers reasonable written notice of a pending increase in tank rental fees, including commencement of a tank rental charge for customers not already paying such a charge. In the course of voluntarily cooperating with the office of the New York State Attorney General in its investigation, Suburban Propane discovered that there was an issue as to the adequacy of that notice in some cases. This settlement resolves that issue. In entering into the settlement agreement with the Attorney General, Suburban Propane did not admit to any liability or wrongdoing. Suburban Propane entered into the agreement to both resolve the case without lengthy litigation and as a measure of good faith to our New York customers.
In announcing the settlement, Michael J. Dunn, Jr., President of Suburban Propane, noted that, "Our tank rental fees help us cover a portion of the ever increasing costs we face in connection with the provision of Suburban-owned storage tanks to our propane customers, including costs to acquire, inspect, maintain and insure the tanks. If one of our tanks ever needs to be repaired or replaced, we do so at no extra cost to the customer. By charging tank rental fees, we are better able to continue providing our customers with the high level of service they have come to associate with the Suburban Propane name." Mr. Dunn continued, "At Suburban Propane, we take our motto, 'Our Business is Customer Satisfaction,' very seriously. We want to thank our loyal customers for their continued patronage."
Suburban Propane Partners, L.P. is a publicly traded Master Limited Partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey Suburban has been in the customer service business since 1928. The Partnership serves the energy needs of approximately 900,000 residential, commercial, industrial and agricultural customers through more than 300 locations on 30 states.
SOURCE Suburban Propane Partners, L.P.