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.