Saturday, October 31, 2009
(Last modified: 2009-10-31 15:15:03)
 
Author: David Popiel
Source: The Newport Plain Talk

Natural gas rates for residents in Cocke and Jefferson counties may have hit bottom, as nationally, the price of natural gas has moved higher along with world crude oil prices.

The September natural gas rate of 96.7 cents per therm was approved by commissioners during the regular monthly meeting of Jefferson-Cocke County Utility District commissioners.

Industrial rates were more than 46% lower than a year ago at 57.6 cents per therm, said JCCUD General Manager Tommy Bible, who expects usage to be higher with an improving economy. About 80 % of sales are interruptible service to local industries.

The service and construction departments saw an up tick in October business, with the most service lines being run in October than in many months. Part of the interest in the fuel has been lower prices, said Bible.

Business was brisk during colder days, as the walk-in station located behind the Newport office sold a record 4,473 gallons of propane in Sept. The former high volume was 3,502.

Winter forecasts "are all over the board," said Bible, noting most national forecasts call for a colder winter but the forecast is mixed as to whether it will be wetter or drier.

Commissioners approved moving forward with a plan to renovate and improve the efficiency of customer service. Bible explained that the current front office would be moved closer to the drive-in window area. Engineering offices would be moved to the front.

Architect Dollar and Ewers will be paid $15,800 to oversee the project. One of the important changes will be to keep customers safer. Those parking in the front of the building must back out into the Highway 25E right-of-way, said Bible. "And this is dangerous."

Project costs are estimated at $170,000 but bids are going to be accepted. No timetable has been set for project completion. The move of offices will allow "pooling of staff" to manage costs and serve customers better, said Bible.

 The utility has completed its move of the main gas line along Highway 411. However, the utility will defer sending gas along the line and having to spend more than $8,000 for a valve until the roadwork is completed. The state has not begun construction.

In other business, commissioners accepted the low bid of Ted Russell Ford on a 2010 Ford Explorer pending it meets all specifications. Bidders and bids were: Lance Cunningham Ford, $29,297; Rusty Wallace Ford, $26,682; Ken Wilson Ford, $26,399.

Bible reported the utility is still waiting on federal approval of a PCB settlement case that benefits utilities. JCCUD should receive $168,000 over the next three years.

In another pending court case, the US Supreme Court is expected to hear a case involving taxes on stored gas in Oklahoma. The ruling would affect JCCUD because it has stored gas in Louisiana for which it pays about $4,400 per year in taxes.

Reporting on construction for natural gas business, Danny Barding said the utility ran 9 service lines in Sept. and has 19 ready to run in October and more pending, as activity increases.

Likewise, Propane Division manager Billy Gunter reported that 25 tanks were set in Sept. and 31 locations spotted for future tanks. There are 25 tanks to set now, but 23 services to discountinue.

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