Comments on: Gasline meeting draws crowd, concerns http://homertribune.com/2012/10/gasline-meeting-draws-crowd-concerns/ Homer, Alaska Fri, 24 May 2013 11:27:29 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: deb http://homertribune.com/2012/10/gasline-meeting-draws-crowd-concerns/comment-page-1/#comment-97842 deb Tue, 30 Oct 2012 03:33:58 +0000 http://homertribune.com/?p=24503#comment-97842 Ask your neighbors in Anchor Point how wonderful Natural Gas is. Do not listen to the bad information and what ifs... call a firend in AP and they will tell you how cheap it was to convert and how cheap it is to heat... it is WONDERFUL... some folks went from 500 a month propane billls to 50 a month heating bills... and the assessment for them was around 2300 or so... and then depending on who did the work and how much people were hooked up for 1200 to 3000 grand. You can convert an oil boiler... you can get a new rhinnia ... lots of options... ALL GOOD. Ask your neighbors in Anchor Point how wonderful Natural Gas is. Do not listen to the bad information and what ifs… call a firend in AP and they will tell you how cheap it was to convert and how cheap it is to heat… it is WONDERFUL… some folks went from 500 a month propane billls to 50 a month heating bills… and the assessment for them was around 2300 or so… and then depending on who did the work and how much people were hooked up for 1200 to 3000 grand. You can convert an oil boiler… you can get a new rhinnia … lots of options… ALL GOOD.

]]> By: Judith Eckert http://homertribune.com/2012/10/gasline-meeting-draws-crowd-concerns/comment-page-1/#comment-97715 Judith Eckert Sun, 28 Oct 2012 01:39:42 +0000 http://homertribune.com/?p=24503#comment-97715 The cost for Homer property owners to have natural gas service is broken into two parts: Transmission line – This is the big line that brings gas from the source to the boundary of the HSAD. A substantial portion is being paid for by a state grant with the remainder paid by a $1 per Mcf surcharge. Distribution buildout – This part is paid for through the HSAD and comprises the significantly larger part of total cost. The transmission line has been one of two major problems expressed by Enstar in serving Homer, the other being a dwindling supply of gas in the Cook Inlet. Though Enstar did not raise the cost of this line as an issue when the Alaska Public Utilities Commission (APUC) gave it the Certificate of Public Convenience and Necessity (CPCN), Enstar would not build a line to the HSAD without being paid the entire cost. While Enstar’s approach is troubling, the State assistance is valuable. The Governor and Legislature deserve our thanks. Now for the HSAD. It is unclear how the cost of building the distribution system will be calculated and managed. In reviewing Enstar’s tariff, the Sponsoring Government Body (City of Homer) is due a Free Allowance for the embedded cost of service to each property owner. The ultimate HSAD cost should be equal to the cost of construction less Free Allowances. Are Free Allowances accounted for in the estimated cost of $3,283 per property owner? Homer is including 3,289 property owners in the HSAD. If hypothetically, 10 are large commercial users, 150 are small commercial users and the rest are residential, the total Free Allowance would be a little over $2.1 million. We need to see how the cost recovered in the HSAD is calculated and how Enstar’s tariff is applied. This may be seen as wonky but a white board presentation by Enstar or the City would be handy. Also, a confirmation of Enstar’s receiving competitive construction costs is necessary. If possible, the City of Homer should ask Enstar for alternative scenarios using steel pipe for the main line to Homer and different pipeline routes. Probably, Homer property owners’ main concern is the substantial cost of the HSAD. Many years have passed since Enstar received the authority to serve gas in Homer. Enstar has received a lot of latitude in doing so in variance from the expectations of the APUC eighteen years ago. The Regulatory Commission of Alaska (RCA) has allowed this latitude so for better or worse, clinically Homer residents and businesses have a consumer advocate. If Homer property owners are treated fairly, meaning the same as all of Enstar’s other customers, then the City of Homer is to be commended for moving to the step of forming the HSAD and financing the buildout for Enstar and Homer’s property owners. Rick Eckert The cost for Homer property owners to have natural gas service is broken into two parts:
Transmission line – This is the big line that brings gas from the source to the boundary of the HSAD. A substantial portion is being paid for by a state grant with the remainder paid by a $1 per Mcf surcharge.

Distribution buildout – This part is paid for through the HSAD and comprises the significantly larger part of total cost.

The transmission line has been one of two major problems expressed by Enstar in serving Homer, the other being a dwindling supply of gas in the Cook Inlet. Though Enstar did not raise the cost of this line as an issue when the Alaska Public Utilities Commission (APUC) gave it the Certificate of Public Convenience and Necessity (CPCN), Enstar would not build a line to the HSAD without being paid the entire cost. While Enstar’s approach is troubling, the State assistance is valuable. The Governor and Legislature deserve our thanks.

Now for the HSAD. It is unclear how the cost of building the distribution system will be calculated and managed. In reviewing Enstar’s tariff, the Sponsoring Government Body (City of Homer) is due a Free Allowance for the embedded cost of service to each property owner. The ultimate HSAD cost should be equal to the cost of construction less Free Allowances. Are Free Allowances accounted for in the estimated cost of $3,283 per property owner?

Homer is including 3,289 property owners in the HSAD. If hypothetically, 10 are large commercial users, 150 are small commercial users and the rest are residential, the total Free Allowance would be a little over $2.1 million.

We need to see how the cost recovered in the HSAD is calculated and how Enstar’s tariff is applied. This may be seen as wonky but a white board presentation by Enstar or the City would be handy. Also, a confirmation of Enstar’s receiving competitive construction costs is necessary. If possible, the City of Homer should ask Enstar for alternative scenarios using steel pipe for the main line to Homer and different pipeline routes. Probably, Homer property owners’ main concern is the substantial cost of the HSAD.

Many years have passed since Enstar received the authority to serve gas in Homer. Enstar has received a lot of latitude in doing so in variance from the expectations of the APUC eighteen years ago. The Regulatory Commission of Alaska (RCA) has allowed this latitude so for better or worse, clinically Homer residents and businesses have a consumer advocate.

If Homer property owners are treated fairly, meaning the same as all of Enstar’s other customers, then the City of Homer is to be commended for moving to the step of forming the HSAD and financing the buildout for Enstar and Homer’s property owners.

Rick Eckert

]]> By: Just Wondering http://homertribune.com/2012/10/gasline-meeting-draws-crowd-concerns/comment-page-1/#comment-97658 Just Wondering Sat, 27 Oct 2012 01:08:53 +0000 http://homertribune.com/?p=24503#comment-97658 Exactly how much will it cost individual lot owners to bring gas to their lots? The cost Mr Wrede is quoting is only to bring the gas line into Homer...but who is going to pay for the cost of running it to every street in town. Remember, this cost analysis is from the same City Manager and City Finance Director who several years ago went on the radio pleading for an extra 1% increase in sales tax to run the city (a special election was held and voters passed the tax) then two years later, they said the city had enough money to make $800,000 plus loand payments for a new City Hall. Can we really trust city officials to make correct cost estimates for the gas lines? Exactly how much will it cost individual lot owners to bring gas to their lots? The cost Mr Wrede is quoting is only to bring the gas line into Homer…but who is going to pay for the cost of running it to every street in town.

Remember, this cost analysis is from the same City Manager and City Finance Director who several years ago went on the radio pleading for an extra 1% increase in sales tax to run the city (a special election was held and voters passed the tax) then two years later, they said the city had enough money to make $800,000 plus loand payments for a new City Hall. Can we really trust city officials to make correct cost estimates for the gas lines?

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