New Gas Line Caters to Businesses, Some Residents Denied Service

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“It’s done and there’s gas on the system and we can start talking to customers and getting customers on the system,”

Community Relations Manager Jodie Huiet said at this week’s Economic Development Authority Meeting. But, according to Account Executive Mike Hitt this is easier said than done. The Atlanta Gas Light Company finished its months-long project late last month, which runs natural gas lines from Ellijay to Blue Ridge. Started last August, the project was officially completed on March 30th of this year.

When asked about businesses acquiring service, Hitt explained it will be easier for businesses to obtain service from the new main line than it will for residential customers.

“We’ve got part of that main (gas line) that’s coming up from Ellijay to Blue Ridge that we cannot tie on to,”

he said. Specifically, Hitt described this area as Boardtown Road in Ellijay, where the poultry farmers are located, and then up to Zaxby’s and KFC in Blue Ridge.

He said AGL engineers plan to make the line a main feeder line, which he noted would either tie on to Chattanooga or Dahlonega and have 720 pounds of gas in it.

“Legally,”

he said,

“we cannot tie onto a system that has 720 pounds of gas.”

For businesses the solution is a regulation station. Hitt said AGL plans to install a regulation station (to regulate gas pressure) in front of Zaxby’s in Blue Ridge and then run a line toward town and the elementary school. This part of the system, he noted, will serve Arby’s, Zaxby’s, Dairy Queen, Home Depot and the soon-to-be Walmart. Another regulation station will be installed in front of the Kentucky Fried Chicken and will run toward the middle school.

Regarding residential customers, however, Hitt said AGL is under PSC regulations. Here, Hitt said PSC regulates AGL’s line extensions, saying the allowable footage is based on gas loads and size.

“Typically,”

he said,

“residential customers—say a 2000 square foot home with furnace (and) water heater—typically we can give about 80 feet of free gas line to those customers.”

As such Hitt explained that it’s more difficult to serve residential customers because of the limited amount of allowable free gas line. Conversely, though, he said it’s easier to serve commercial customers because according to PSC regulations AGL can offer 300 to 400 feet of free gas line to these customers.

Hitt also shed some light on the structure of natural gas service.

“We don’t sell the gas any more,”

he said. He went on to explain that AGL installs and maintains lines through out the state, but the marketers sell the gas. As such, AGL generates revenue from marketers who sell gas to both residential and commercial customers, where AGL receives a $23-$25 residential meter charge and approximately $150 for commercial meters.

Although some residential customers are denied access to the new natural gas service, Hueit said the system still benefits the community by promoting economic development by serving local businesses, which in turn boosts the economy.

Hueit also said a ceremony will soon be held for the completion of the project. A date for the ceremony, though, is still pending.

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