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Fairbanks Natural Gas expansion approved
Kristen Nelson
The Regulatory Commission of Alaska approved an expansion of Fairbanks Natural Gas’ service area Nov. 4. Fairbanks Natural Gas runs a liquefied natural gas plant on the west side of Cook Inlet and trucks LNG to Fairbanks for regasification and distribution.
The commission said the company is expanding its liquefied natural gas to vaporized natural gas conversion capacity in order to stay ahead of peak customer demand.
The company said in a June application that it would expand its Fairbanks service area in three directions: to the northwest to allow service to the University of Alaska Fairbanks, initially interruptible natural gas to the university power plant; to the north to include the most northern loop of College Road, allowing the company to provide service all along College Road; and to the east to include portions of Fort Wainwright as well as a developing area northeast of Fairbanks along the New Steese and Johansen expressways. First certificated in 1997 Fairbanks Natural Gas was certificated in 1997 and the commission approved expansion of its service area in 1999.
The company said it has requests for service from several customers in the service area — UAF, Chilis, Fairbanks Sand and Gravel and Greer Tank and Welding — and continues to receive inquiries from potential customers in the proposed new area. It requested expedited consideration so that it could take advantage of the 2005 summer construction season. The commission noted the company filed its application “in late June, which is mid-way through the 2005 construction season,” and said the company “provided no compelling argument as to why its application should take precedent over other proceedings” before the commission.
In its approval of the expanded service area the commission said it finds the company “to be fit, willing, and able to provide the proposed service,” and said the company “has strong investor capitalization and is showing financial growth as it endeavors to penetrate the Fairbanks energy market.”
The company told the commission that initial extension of natural gas service lines to and in the proposed new area is expected to require capital investment of approximately $1,075,000, and estimates new annual revenues of $1,015,000 from initial customers, of which $650,000 covers LNG costs.
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