Gas Co. renews New Milford promise

BY STACI WILSON

After pulling the plug on its plans to bring natural gas service to New Milford this year, Leatherstocking Gas Company owners told borough council Thursday that the build is part of their 2017 plans.

Leatherstocking owners Joe Mirabito and Mike German provided a status update, and reviewed reasons why the company was not able to begin construction of the distribution lines this year.

German said the low price of gas, as well as a “land problem” at the compressor station start of the proposed line.

Mirabito said bringing gas service to a rural area was a new thing and that “sometimes the challenges are more than anticipated.”

He said the company had already spent $200,000 on the New Milford build-out in engineering costs, easement acquisitions and line building items.

The company has also received “almost” all o the right-of-ways it needs for Phase I of the build, he said.

According to German, Leatherstocking plans to firm up all the commitments to hook up to the line that have been submitted – both residential and commercial.

He also said the company would be meeting with DTE Bluestone in efforts to reach a contract for the gas.

Leatherstocking is also in the process of finalizing the acquisition of a property where the line would begin.

If all those criteria are met, German said the company would be filing for permits in early 2017, with construction on Phase I of the project slated to begin in the second and third quarters of 2017.

Phase I covers most of the borough, while Phase II would require additional customers and easements.

“What’s difficult for us is Blue Ridge school,” German said. “We tried hard to get the school.”

He said that in other municipalities where the company has placed service – Montrose, Bridgewater, Dimock – the schools are an anchor customer.

Blue Ridge School District uses wood chips as a primary heating source. When approached by Leatherstocking over 1-1/2 years ago, the board said wood was more cost-effective for the district (BRSD approved in May a contract for wood chips for 2016-17 at $34/ton, delivered).

German said the company plans to revisit the district, with an offer that would make conversion to gas more attractive. “We’re willing to negotiate in any way to remain competitive,” he said.

He added the school district – as well as the borough and New Milford Twp. – could possibly also take advantage of the recently passed SB 215.

The bill allocates $10 million to provide up to 50 percent of the cost of conversion in grants to schools, hospitals and small businesses to obtain natural gas.

Council President Richard Ainey said he had spoken with a school director who told him Leatherstocking wanted an exclusive contract with the district.

German said the gas company needed a contract that would provide a minimum dollar amount in order to pay for the infrastructure investment.

Ainey also said the school board member told him the district did a cost comparison and found that wood was cheaper.

The council president said he asked for that comparison and was met with a “If you want it, go get it,” answer from the director, he told council.

“As a consumer and taxpayer, I would like to know. There is a cost to our community more than just the school cost,” Ainey said.

Leatherstocking owners said they believed that with a BTU comparison, gas could be competitive with the wood, especially if the cost of ash removal and maintenance is also figured into the comparison.

Leatherstocking and the borough council plan to put some numbers together and again approach the Blue Ridge Board of Education.