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AGL Files CNG Fueling Station Proposal, Would Rely on Marketers to Supply Stations
May 13, 2011
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Atlanta Gas Light has submitted a revised proposal to the Georgia PSC to build a network of Compressed Natural Gas (CNG) fueling stations over the next five years in the metropolitan Atlanta region and along major transportation corridors in the state (Docket 32499).
Notably, under the proposal, AGL would maintain the current competitive framework of not retailing natural gas itself. CNG Retailers will purchase natural gas from PSC certificated retail natural gas marketers and the CNG Retailer will resell it as CNG to the public.
Atlanta Gas Light will not sell CNG to the public nor participate in a non-utility role with the commercial operations of any CNG Retail Station developed under the program.
AGL will own the CNG equipment which is necessary to provide Atlanta Gas Light's new CNG service under the CNG-1 rate schedule. CNG Retailers will own the dispensing equipment needed to sell the CNG to customers.
This ownership structure avoids the burdensome requirement that a CNG Retailer become a "gas company" as defined in the Georgia code.
AGL is seeking to use $12 million from the Universal Service Fund to fund up to 50% of costs for construction of approximately 10 to 15 fueling stations. Developers would be required to assume remaining costs.
Developers would need to meet several criteria, including usage and location requirements, to be eligible to receive Universal Service Funds, and would compete for the funds via RFP.
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