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June 19th, 2013:

Connecticut Gas Utilities Pursue Fuel Conversions

American Energy Coalition - June 19th, 2013

Three Connecticut gas utilities are planning major expansions of distribution lines to enable nearly 300,000 more customers to choose natural gas for heat, according to an article by the Waterbury Republican American.

“Connecticut Natural Gas, Southern Connecticut Gas and Yankee Gas have presented state regulators with a rare joint proposal outlining how they would spend tens of millions of dollars to connect 280,000 customers over 10 years. They are asking the state to approve a new rate plan to finance the massive project,” the article states.

In its proposal, Yankee Gas, a subsidiary of Northeast Utilities, said capital spending would be $35 million next year and more than $96 million in 2015 and 2106. The Southern Connecticut Gas Co. said capital spending would be $61 million in the three years while Connecticut Natural Gas expects capital spending of about $47 million in the same period.

The utilities say they have received numerous requests from potential customers asking to be connected to natural gas, according to the Republican American. The utilities’ intentions are consistent with the state energy policy announced by Gov. Dannel P. Malloy last October, which seeks to spur greater use of natural gas by residential, commercial and industrial customers.

Yankee Gas stands to gain about 85,000 new customers, while Southern Connecticut and CNG, both part of UIL Holdings Corp., could increase the number of customers by about 200,0000, according to the article.

“The utilities are asking regulators to approve new rates that would spread the cost of hookups over 25 years; eliminate a required contribution toward construction for customers connected to gas lines that are 150 feet or closer to gas mains; and make other rate changes to encourage the large-scale switch to natural gas,” the article states.

The utilities plan to launch a marketing campaign, collaborate with state agencies, and offer rebates and other financing tools as incentives to switch to natural gas, according to the Republican American.

To read the Waterbury Republican American article, click here.

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