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Covington City Council to discuss CNG pricing at Green Fueling Facility

COVINGTON — The Covington City Council plans to take action Monday to establish the prices of compressed natural gas at the Green Fueling Facility.

The original date scheduled to open the facility was April 2014, but now it is set for January.

“All the equipment is in, but we still need to run through tests,” said Randy Conner, finance coordinator for the city of Covington. “The rainy weather also delayed us from connecting the gas, but we plan to open the facility for the public sometime in January.”

In order to complete equipment setup for the facility, the council must approve rates for various customer types.

Since natural gas rates are calculated in thousand cubic feet (MCF) increments, CNG being sold as a transportation fuel is sold in gasoline gallon equivalents (GGE).

The following rate will be proposed for City Council approval:

• Utility Customer rate: $1.85

• Large Volume Customer rate: $1.95

• Public rate: $2.34

The utility customers would be residents of the city who are supporting the gas supply system through paying taxes and monthly utility payments and would be billed using an additional line-item on the utility bill.

Large volume customers are those who are using in excess of 15,000 GGE’s per year or whose transportation plan shows a schedule for fleet conversion to CNG that will place them at the minimum level within the next 24 months. These customers have the option of being billed on a monthly basis through the use of a special customer key code.

Public rates would be posted at the facility for those who don’t fall into the first two categories.

Conner said he will also seek approval from the council to create a gas fund to separate the CNG sales at the Green Fueling Facility from the utility gas department before it opens to the public.

“The fund set-aside will create a reserve for future renovations, overhauls and anything necessary for the facility,” he said. “It will be easier to share with the council exact numbers of savings and volumes of gas sold when we create the gas fund as opposed to having it under the same account as household cooking gas.”