Lewes gets update on natural gas expansion

June 14:

Officials from Chesapeake Utilities updated the Lewes City Council and residents on the progress of bringing natural gas service to homes within city limits.
So far, 57 customers have converted to natural gas, which Bill O’Brien, director of pricing and regulatory affairs for Chesapeake Utilities, said saves customers an average of $400 per year, in addition to being more environmentally friendly.
Many residents came out to say they would like service, but also expressed frustration they have not received it yet.
Chesapeake’s application to expand service offerings in southeastern Sussex County was approved in December by the Delaware Public Service Commission, O’Brien said. The approved expansion plan requires that Chesapeake only complete projects in which the revenue from the project warrants the investment, O’Brien said.
Chesapeake has changed its pricing structure so the monthly charges for customers would increase to absorb the costs of expansion, O’Brien said.
But in some neighborhoods, as many as 70 percent of customers need to sign-up in order to justify providing service.
Residents at the meeting insisted the interest was there.
“We’re still no closer to getting gas in Pilottown Village than we were from day one,” resident Jim Berrigan said.
Apart from the challenge of having customers sign up in advance, Chesapeake hasn’t been able to give a specific expansion timeline for fear that competing energy sources would target those areas for discounts to retain business. The issue of contacting and estimating consumption for vacation homes has also made the process more difficult, O’Brien said.
“I do know we have a large number of full-time people in Pilottown,” resident Ric Moore said. “Many of us have been champing at the bit for several years now. It seems to me you can run a line predicated on capitalizing a little later.”
Source:  http://www.delawareonline.com/story/news/local/2014/06/14/lewes-gets-update-natural-gas-expansion/10539035/

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