Enstar Outlines Homer’s Financial Role in Natural Gas Buildout

Posted: February 6, 2013 at 12:00 pm

As we reported, the Kenai Peninsula Borough Assembly last night, approved a $13 million loan to the cities of Homer and Kachemak City for the natural gas distribution system for the two southern peninsula communities. John Sims with Enstar also noted the the financial role the residents will play in the system…

 

Sims: “Something unique with the Homer extension surcharge, Rep. Seaton(R-Homer) worked to get into the capital budget $8.1 million to go towards the payment of the transmission system on that Homer trunk line. One of the things that the Governor expressed concern with was just simply paying for, without ownership from the City of Homer and Kachemak City. So one of the things Rep. Seaton did, creativity, was used existing language in our tariff, from back earlier when we initially trying to get a project in Homer, and that’s a dollar surcharge, and that dollar surcharge is going to be tied over and above the costs that Enstar typically uses or charges for its customers until the complete project cost is paid off. We have an estimate of $10.7 million, so the City of Homer will be paying and Kachemak City will be paying about $2.55 million.”

 

Sims said that Enstar is looking to begin construction as early as this week.

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