(c)2010 NPT PHOTO BY DAVID POPIEL

New officers for Jefferson-Cocke County Utility District Board of Commissioners were elected
in late January in Newport. Dandridge attorney Tom Baugh, at left, administered the oath of
office. From left are President Gary Hammonds, Vice-President Harry Chambers, and
Secretary-Treasurer Robert Overholt.

With plenty of advanced warning of the snowstorm, customers lined up to buy propane before Friday night's arrival.

Jefferson-Cocke County Utility District commissioners meeting last Thursday learned the small-cylinder fill station in Newport set a sales record of 21,871 gallons in December. And for the past year, employees dispensed 109,756 gallons.

General Manager Tommy Bible said the new walk-in facility is more than proving its worth and the investment required to move it from off Highway 25-E to the rear of the offices. Customers from North Carolina and surrounding counties are filling up.

Falling temperatures helped both propane and natural gas sales, as Dec. was 15 percent colder than the prior year month. With 810-degree days, Dec. 2009 was five percent colder than normal.

The record cold in recent years was 1,051-degree days in 1989, and the current 90-day forecast calls for below normal temperatures in the south, east and northeast, said Bible.

Walk-in propane sales were up about 50 percent. "It's turned into something unexpected," he said of the customer volume.

At the same time propane prices have been increasing. "There is a lot of pressure on the wholesale side as inventories dip in the US." Propane sells for more than $2 per gallon and jumped 30 cents in one day.

Natural gas sales for Dec. hit 275,000 thousand cubic feet (mcf) with industrial use accounting for 138,000 mcf of that total. Industry has been running stronger.

Even with extreme cold in Jan. and more expected, industries have not had their gas supply curtailed. This is because of two factors. One, United Utilities buying group of which the local district is a member shares supplies. JCCUD also has a secure storage in Early Grove, Virginia.

Bible commended employees who responded to a gas fire near Edgemont School last week. A relief valve did not seat properly allow gas to escape. Bible speculates that someone must have ignited the gas because there was no source of spark near the valve.

Construction supervisor Danny Barding said the utility team responded quickly and took care of the leak before any damage happened. The school was not in danger as the valve is about 150 feet from the school.

Dandridge JCCUD Attorney Tom Baugh administered the oath of office to new officers for 2010. President is Gary Hammonds; Vice-President, Harry Chambers; and Secretary-Treasurer, Robert Overholt. Other commissioners are Bill Buda and Rob Wilson.

Commissioners learned that the district would have to pay a share to settle an old workers compensation underwriter's claims. Bible explained that years ago about 140 utilities participated in the pool but the underwriter went bankrupt. JCCUD must pay $10,136 as its share.

Bible reminded commissioners that bid opening on the Newport offices relocation and renovation project would be in February. The business office will be moved closer to the drive-in window office for efficiency.

Despite the weather, utility workmen have been outside running gas lines and setting new propane tanks, reported Barding. The utility ran 13 natural gas service lines in Dec. and placed 500 feet of two-inch steel line in Dandridge. Workers in the propane division set 18 tanks and are prepared to set 17 more soon.

A "front burner" project is repair of a high-pressure transmission line in White Pine, said Bible. The pressures range from 700 to 350 pounds so special equipment and contractors will be used. The cost to the utility could be as high as $40,000 to replace the valve.

Commissioners approved a residential gas rate of $1.12 for Dec., compared to Dec. 2008 of $1.37 per decatherm. The industrial rate was just 68 cents per decatherm.

JCCUD ended the calendar year with fewer natural gas customers at 7,325 and more propane customers, 5,060, for a total of 12,385 gas customers, as the business continues to grow.