Como gas plans

Published 12:00 am Friday, April 13, 2012

Como hears gas purchase plan


By John Howell Sr.

Como residents will have opportunity during a public hearing at the May 8 meeting of the board of mayor and aldermen to learn about a proposal to sell the town’s municipal natural gas distribution system.

Bob Conrad of Mississippi Naturals presented at the Tuesday, April 10 meeting a proposal to purchase the gas system from the cash-strapped town for $225,000. Conrad said that the company would also pay the town a franchise fee based on four percent of the invoiced gas bills.

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Tommy Rayburn, Como’s former public works supervisor, had recommended, prior to his retirement at the end of March, that the elected officials consider selling the utility. Rayburn cited growing maintenance needs and the cost of complying with increasingly stringent regulations.

“If this was to work out, we would not intend to raise the gas rates any time soon,” Conrad said. “We would like to make it a very smooth transition. We would take care of the citizens of Como just like the town does now.”

Conrad answered questions about policies.

“Would you be interested in adding more people on to it?” Alderman Clark Gregory asked. “There are several streets that still run propane.”

“I would like to try to get a little bit aggressive with hooking up natural gas; … I’d love to get everybody in town on natural gas,” said Conrad. “It’s half the price (of propane) per energy unit.”

Alderman Bill Mitchell asked what would happen to the gas system if Conrad’s company was unable to maintain it.

“If we weren’t running it properly or something happened to me the Mississippi Public Service Commission would try to work with us to fix the problem,” Conrad replied. “If it kept getting worse, they would take over the utility and find another utility to come in.”

Alderman Ruby Higgenbottom asked about gas customers on fixed incomes who receive checks once a month.

“Some of these people don’t get those checks until the tenth, the first or the third; what happens to those people if they can’t pay by the tenth?” Higgenbottom asked.

Conrad said his company would work with Como Municipal Clerk Scott Rhines to identify special needs customers.

“Sometimes people forget people and I don’t want that to happen,” Higgenbottom said. She said that she was concerned about not having a local person to call who could intervene if gas was about to be cut off for nonpayment during wintertime.

“Each of you … would have my personal cell phone,” Conrad said.

Further discussion indicated that the Como municipal gas system serves about 375 customers. Como purchases its gas as an industrial customer of the City of Senatobia. In 2001, Como deeded ownership of the gas supply pipeline from Senatobia to the Como system because Como’s payments for gas had fallen in arrears.