CEO ROUNDTABLE:Natural gas — a most efficient energy
Do you recognize that natural gas does not require another energy to create it, as do other energy forms? Do you recognize that natural gas is the “clean burning” energy? Perhaps most important for this competitive energy source is the fact that the United States is not dependent on foreign lands for its supply! Over 90 percent of the natural gas used in the United States comes from North America. Natural gas is made available to industry and homes in Warren County by the Middle Tennessee Utility District.
The Middle Tennessee Utility District was formed in 1955 as a not-for-profit municipal corporation under Tennessee law, with the objective of serving the human needs and industrial growth requirements of rural counties in middle and east Tennessee. Today with 144 employees, the Utility District covers 20 counties, 120 communities, and has a total of 52,000 customers. Business revenues are split about 50/50 between industrial/commercial and residential users. There are 7,500 customers served in Warren County. Middle Tennessee Utility District is the largest utility district in Tennessee and the 101st largest natural gas distribution system in the country. The District’s Administrative Office is in Smithville and area offices are located in seven Tennessee communities including McMinnville. The Utility District is governed by a group of seven appointed commissioners. Commissioners make rate and policy decisions and oversee the District budget and operations. James A. Dillon, Jr. is a commissioner from Warren County. The CEO is Leslie B. Enoch, II whose office is in Smithville. The utility district employs 15 in Warren County. The district does not own or operate construction machinery. This work is subcontracted to third-party firms via low-price bidding.
Middle Tennessee Utility District is fortunate to have access to two interstate pipelines. Most municipal utilities only access one such pipeline. The Utility District has two tap stations on the Texas Eastern Pipeline and seven tap stations on the East Tennessee Pipeline. Both these interstate pipelines bring natural gas to Tennessee from the Gulf of Mexico, but can also access natural gas from as far away as Canada. Having two pipelines to draw from helps the local utility district be more competitive. Two main lines come into the Morrison Industrial Park. Fully integrated service in McMinnville also can come from main lines from Smithville and Sparta. Middle Tennessee Utility District has invested approximately $14 million in main and service lines in Warren County. A major project underway involves a new 12-inch diameter main line coming from Woodbury that will go eventually to Rock Island. This will be another major investment in Warren County.
Middle Tennessee Utility District serves customers by keeping rate changes to a minimum by purchasing and storing natural gas during the summer low usage months for the winter peak season. As much as 50 percent of the winter season natural gas demand is stored in contract underground and above-ground facilities in Louisiana, Pennsylvania, Tennessee, and Virginia, or pre-purchased to hedge against higher prices during the winter.
One significant technology involves storage of liquefied natural gas in above-ground facilities whereby the liquid state allows 600 times more storage than the gas state. The district uses a facility near Knoxville for this type of storage. Liquefied natural gas is also transported to the United States by ship and injected into the pipeline grid. Compressed natural gas has also been tested by the natural gas industry and utilized as an energy source for cars and trucks.
Middle Tennessee Utility District surveys all 680 miles of main and service natural gas lines at a minimum of every five years for leaks or damage. Urban lines are checked every year. The Utility District maintains a staff of technicians and customer service representatives in each area office, including McMinnville.
Most new technology development for natural gas deals with how to use it more efficiently. A new innovation involves electronic or automated meter reading. Approximately 7,000 residential, commercial and industrial natural gas meters have been installed by the Utility District that are equipped with an electronic device that can be read up to 1,000 feet away with a hand-held computer unit.
A meter reader can aim the computer at a meter and take an automatic reading. Readings then are downloaded at the local office to a billing computer. Human error with the meter reading is eliminated, and the time to do meter readings is significantly reduced. The Utility District plans to install 1,000 of these new meters in Warren County during 2004.
Natural gas is attractive because it is efficient and reliable, it brings high comfort and instant heat, and is competitively priced. Natural gas can be used for home heating, to heat water, and for cooking, and clothes drying. All related appliances feature high levels of natural gas use efficiency, compared with models available in the past. The latest type of natural gas water heater is now totally enclosed and carries a 90 percent efficiency rating.
Natural gas is used by industry in boiler and process heat and drying applications to produce paper, chemicals, petroleum, food and metal products as well as to heat and air condition buildings. The local Bridgestone plant utilizes natural gas as the energy source to manufacture tires as well as to heat and air condition its facility.
Overall, Middle Tennessee Utility District has continued to experience improved product demand and customer growth during its 49-year history of service to the public. The planned pipeline expansion will double the capacity for Warren County’s potential growth. Major industrial user demand and the District’s tap and city gate stations are monitored remotely from the District’s Administrative Office.
It seems clear the Middle Tennessee Utility District has supported growth in Warren County as it relates to energy demand, and is well poised for future growth. The Utility District strongly supports the proposed new Energy Bill in Congress that would encourage additional natural gas exploration in Alaska and elsewhere. We are very pleased to have the service commitment from the Middle Tennessee Utility District for Warren County.