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Gas demand higher as industry output increases

Published: 9:29 PM, 07/30/2010
 

Author: David Popiel
Source: The Newport Plain Talk

Industry continues to pickup steam this summer, judging by the amount of natural gas being used in Cocke and Jefferson counties.

During the recent Jefferson-Cocke County Utility District Board of Commissioners meeting, General Manager Tommy Bible said ConAgra is operating seven days per week and other industries are also using more energy.

Looking at the June sales of 163,414 thousand cubic feet of gas, the volume to industry increased by almost 20,000 mcf year over year, he said. "Industry is running very strong and we are pleased with sales."

While gas is flowing faster, rates continue to decline. The June rates approved by commissioners included a $1 per decatherm residential rate and a 61 cents decatherm industrial interruptible rate. These were among the lowest rates in about two years.

During the slow gas demand summer months, utility workers focus on maintenance and upgrading equipment. Bible noted that new computers are in propane trucks ready for the July Early Fill program.

Commissioners approved a $5,000 architect's bid for work and management of reroofing of the large warehouse in Newport. Buddy Dollar & Ewers will supervise the project with work planned this fall.

Bible thanked Newport Utilities and manager Ron Fugate for working with the gas utility on its need to wash propane tanks. JCCUD will be able to utilize certain fire hydrants so its pump trucks can fill up with water to wash propane tanks. The utility has about 5,000 customers.

"Newport Utilities and Mr. Fugate went out of their way to help on this project. We thank them and the fire department," said Bible. Special meters will be placed on the hydrants to measure the amount of water used by JCCUD.

In other business, commissioners approved writing off $4,745 of obsolete equipment. The equipment includes heating units, furnaces, gas alarms, and other items that the utility has had for up to 30 years. Some of items will be sold to L&M Metals in Morristown for scrap.

As part of the new appliance center, the utility will select two cabinet makers to display some cabinets to create a modern kitchen with gas appliances. Also, a stone layer will build a fireplace for displaying gas heating units. This commercial display work would be at no cost to the utility.

The commission approved the process of taking sealed bids for used furniture to be sold to the general public. The bids will be opened and awarded to highest bidders at a future board meeting.

The next meeting of the gas utility board of commissioners is set for Tuesday, August 31.

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