Prince Frederick, MD – Officials with Washington Gas paid a call on the Calvert County Commissioners Tuesday, Feb. 23 in hopes of getting the board’s support for legislation that would allow the utility to expand in unserved rural areas. The initiative would target areas of Calvert County, which currently only has Washington Gas service in its central and southern portions.
Washington Gas Director of Corporate Public Policy Steven Jumper explained the legislation is needed in order to expand the company’s infrastructure—pipelines connected to homes—into rural areas that were, when the currently law was established during the 1970s, not as populated as they are today. “In the 1970s our customer base was not expanding so infrastructure did not either,” said Jumper.
In the company’s presentation to the board it was noted the curtailment of natural gas line extensions during the 1970s and 1980s was the result of a “moratorium” on the product, “the high price of natural gas after price controls were lifted and relatively cheap electricity.”
Jumpers added that nationwide natural gas bills for residents and businesses are declining while supplies of the fuel are plentiful. Noting that a residential customer could realize a significant savings using gas instead of electricity, Jumper declared expanding the availability of natural gas “would be giving people a choice.”
Other points made by Jumper during the presentation were that natural gas availability would “promote and attract growth in commercial, institutional and residential customers in the State of Maryland.”
Additionally, the expansion of the utility’s customer base would be economical since the utility’s fixed costs are “spread across a larger customer base.”
Washington Gas Director of Regulatory Strategy Paul Buckley stated the proposed measure before the legislature contains protections for consumers, including a cap on the amount of funds that can be spent on infrastructure expansion. The Maryland Public Service Commission would review the costs of a proposed expansion program “prior to recovery in customer rates in a traditional base rate case.” The county would need to have identified an area where an expansion project is proposed as an area targeted for future growth.
The proposed legislation on natural gas infrastructure expansion will get consideration in Annapolis soon. Senate Bill 778 will be heard by the Senate Finance Committee March. The House of Delegates version of the measure—House Bill 1324—will be considered by the chamber’s Economic Matters Committee.
Commissioners’ President Evan Slaughenhoupt Jr. [R – District 3] conceded that he has been asked by many local residents about the possible expansion of natural gas services in Calvert. “Our support comes from with the understanding the natural gas service is only offered to residents and businesses in the central and southern portions of the county,” said Slaughenhoupt.
A majority of the board indicated support for the bills. After inquiring about how the gas would be delivered and being told by Buckley it would be by way of a “distribution pipeline, straight to the house,” Commissioner Pat Nutter [R – District 2] declined to support the legislation.
Contact Marty Madden at marty.madden@thebaynet.com
