ConAgra's plan to move some production from another state to Newport got support from the Jefferson-Cocke County Utility District, when commissioners agreed to waive a tariff on Thursday.

Utility general manager Tommy Bible explained that when industries plan future gas purchases they must buy and accept the contracted natural gas or pay stiff "imbalance tariff" charges.

Commissioners unanimously agreed to waive the imbalance tariff for three months until ConAgra has the new production line running and is back to its normal energy consumption.

According to the Fort Worth Business Press, ConAgra Foods Inc. is closing its Ft. Worth plant where it produces Ranch Style Beans in a 200,000 square foot facility. The closing is expected to take place in late February.

Bible said the Newport line is expected to start up in January or Feb. The line, which is only one of several to shut down, reportedly will handle bleached beans.

The Business Press reported in late Nov. that ConAgra decided to close the plant because it would take more than $10 million for modernization. Management cited excess capacity at other plants that could be used such as Newport, Tenn. and Archbold, Ohio.

 

Warmer November

 

The gas utility sold less gas than usual because the month was about four percent warmer than normal, reported Bible. There were 467-degree days. The warmest Nov. since 1980 occurred in 1985 and coldest was in 1997.

The district ended Nov. with 7,284 natural gas (NG) and 5,058 propane customers for a total of 12,342. NG sales fell to 193,100 mcf, but industrial sales were higher.

Propane sales are now expected to fall short of the projected two million gallons by April 1, 2010. Walk-in sales continued strong with 10,339 gal. sold in Nov. Appliance sales were also higher at 271 units since Apr. 1.

Commissioners approved a Nov. gas rate of $1.136 per therm, residential, and .707 cents for industrial-30% lower than last year.

 

Wage Adjustment

 

Employees will get a 2.2% wage increase plus some higher individual adjustments after commissioners approved the recommendation by Bible. "We ask a lot of our employees," he said. The adjustment is effective Jan. 1, 2010.

In other business, commissioners accepted a price of $15,750 from Willard Carr auditors for the FY2010 audit.

Some customers unable to pay their bills may get more help this year because of a donation made by an energy provider to JCCUD. Revelation Energy donated $1,100 to the Project Keeping Warm fund.

 

Construction Update

 

Supervisor Danny Barding reported on NG line construction and propane tank placement for Nov., a busier month with cold weather arriving.

Workers placed 11 service lines and completed 4,500 feet of main line extensions in White Pine and Dandridge. Also, 35 propane tanks were set and more are pending placement.

Barding said the utility has been requested to lower a 100-foot section of gas main along the new Highway 321. There was a conflict because of a drain tile that will require lowering the gas line.