©2009 NPT PHOTO BY DAVID POPIEL

The local gas utility began delivering propane to route customers this week. The propane price has fallen to
$1.45 per gallon so customers will see lower bills compared to last fall.

Bidding for the new gas pipeline along US Highway 411 has saved the utility and government big dollars, after bids were opened on June 25 in Newport.

The project low bidder was East Tennessee Pipeline LLC with a bid of $156,850 for the phase I work, placing eight-inch steel pipeline from Highway 25/70 to Grapeview Hollow.

E.T. Pipeline also won the phase II project with its bid of $186,742 for a total of $343,594. There were five bidders with bids ranging from one half to more than one million dollars, said Jefferson-Cocke County Utility District General Manager Tommy Bible.

The second phase would carry the larger pipeline to Bush Brothers cannery at Chestnut Hill and be in a new location because of the planned new US 411 highway. The state is expected to reimburse the utility for the total relocation cost.

Gas utility (JCCUD) commissioners approved annual contributions for economic development to both Newport and Jefferson City chambers and partnerships totaling $20,000, distributed during the next six months.

A successful marketing plan begun last year has added new gas customers along current distribution lines and will be continued after commissioners heard a report from Office Manager Carolyn Ramsey.

"It was hugely successful," she said of direct marketing to residents along distribution lines by offering special rebates. Rebates during the past 10-12 months totaled about $82,600.

Ramsey noted this rebate marketing plan attracted new contractors and comments that "It was the best thing the utility has done." The utility logged the sale of 395 appliances and 69 gas furnaces, of which 307 units were installed by contractors. Their share of the rebates was $20,450.

In more good news, Bible reported the utility would benefit by more than $164,000 for a PCB settlement with Tennessee Gas Pipeline. The case involved PCBs clean-up in past years the cost of which was shared by utilities. JCCUD would get payments for three years.

In other business, the utility may have to re-bid the sale of a used truck for which it had a bid but the purchaser backed out. The 2001 Dodge truck is still available at a minimum bid of $2,500 but would be re-bid if not sold soon.

There is also positive news for consumers both of natural gas and propane. Natural gas rate of $1.05 for May was approved and rates are expected to continue low, at levels not seen in five years, said Bible. The industrial rate fell to 66 cents per decatherm.

The Early Fill propane route delivery program started on July 1 with a lower delivered price of $1.45 per gallon, said Propane Division Superintendent Billy Gunter. Also, Gunter was commended for his leadership as president of the Tenn. Propane Gas Association.

Commissioners also approved using FSG Bank at Jefferson City to handle daily gas utility transaction funds to eliminate fees and get a higher interest rate on this accumulated money.