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.