September 21, 2015
1577
The Municipality of Kincardine could see the construction of a natural gas line by late 2016 or early 2017.
That's the word from representatives of EPCOR Utilities Inc., the Edmonton-based firm selected by the South Bruce communities of Kincardine, Huron-Kinloss and Arran-Elderslie, to bring natural gas to the area.
The announcement was made today (Sept. 21) at the Kincardine municipal administrative centre.
Kincardine mayor Anne Eadie (in photo, at right) said EPCOR was chosen following a six-month competitive Request for Information process that identified multiple potential developers to construct, own and operate a new natural gas distribution utility.
"This is an important milestone," she said. "Some of us have been part of the process since 2011. We are very pleased to welcome EPCOR to South Bruce and look forward to working with this successful municipally-owned Canadian company to create the new gas utility for our communities."
Huron-Kinloss mayor Mitch Twolan said a lot of hard work was involved in reaching this stage.
"We plan to hold public information open houses in October to formally introduce EPCOR to our residents and explain the next steps and timelines to establish the new gas utility," he said. "Next steps include making an application to the Ontario Energy Board (OEB) to approve the new utility. We expect EPCOR may be able to make this application as early as next spring or summer."
Arran-Elderslie mayor Paul Eagleson said he is pleased the project has reached this step and he looks forward to the open houses. The first one is slated for Thursday, Oct. 15, from 6:30-9 p.m., in Chesley; followed by Friday, Oct. 16, from 6:30-9 p.m., in Ripley; and Saturday, Oct. 17, from Noon to 4 p.m., in Kincardine.
"The province has committed $230-million in funding for natural gas expansion into communities like ours," said Eagleson. "We will continue to meet with the province to pursue provincial funding to help our residents, businesses and farms with the cost of switching to natural gas from expensive electricity, oil and propane."
He added that to have access to natural gas in the South Bruce area will be a significant economic boost for the entire region, "and we are confident that EPCOR will be an excellent partner to implement this critical project."
J. Mark Rodger, project consultant of Borden Ladner Gervais LLP, said this announcement marks the end of one chapter and the start of a new one, with the proposal to bring natural gas to as many industries, businesses, farms and residents, as possible.
"Last October, we put together a business case to determine what was required to bring natural gas to this area," he said. "It was agreed to put out a Request for Information to see if anyone was interested in this project. As of last week, all three municipal councils unanimously agreed on the selection of EPCOR Utilities Inc."
Rodger noted that EPCOR is a new entrant into the energy sector in Ontario. "We welcome EPCOR and look forward to working with you."
Meanwhile, he said the municipalities will continue to pressure the province to allow grant money to be used to help residents and businesses with conversion costs. The $230-million in funding includes $200-million from the Natural Gas Access loan, and $30-million from the Natural Gas Economic Development grant.
Stephen Stanley, EPCOR's senior vice-president of commercial services and technologies, said bringing natural gas to the area means significant benefits for the communities, including economic investment, and a choice of energy supplier for consumers.
"We need to get this done as fast as possible," he said. "Fortunately you have significant political leadership in all three municipalities. We look forward to the next steps."
He noted that EPCOR is owned 100-per-cent by the City of Edmonton, so the company is familiar with working closely with municipalities. "This will be a dynamic partnership and we want to be part of this wonderful community."
Karim Kassam, EPCOR's vice-president of business development, said those next steps include engaging the public at the open houses, and getting the Environmental Assessment (EA) under way which is a key part of the submission to the OEB.
"We need the commitment of large industrial customers," he said. "The three mayors are taking us on a tour of those large industrial consumers. We have a lot of work to do. We hope to have the submission to the OEB within six months, and receive approval from the OEB in about four to six months. That means we could begin construction toward the end of 2016 or early 2017."
"This is very exciting for our three municipalities," said Eadie. "It's fantastic. We're so close to getting this whole project up and running."
During a question-and-answer session, the concern was raised regarding costs for the three municipalities.
"We are not asking for any money from the municipalities," said Stanley. "EPCOR is investing the money to develop this natural gas line. Then we recover the cost through utility rates as approved by the OEB. The provincial grant money will be used to target consumers and conversion costs."
As for the proposed cost per homeowner, Kassam said residential customers could see a payback in as little as three years, while for industrial customers, it could be two years.
"There are no taxpayers dollars being spent on this project," emphasized Eadie.
As to the question of municipal ownership of the project, she stressed that the Municipality of Kincardine does not have $100-million to invest in anything. "EPCOR has the money to invest; the company is rock-solid, financially."
Following the press conference, Kassam told The Record that EPCOR is quite excited about venturing into Ontario. The company built the sewer system in Sooke, British Columbia, and recently got the contract to build a $170-million to $180-million wastewater treatment plant in Regina, Saskatchewan.
"The biggest hurdle will be getting the approvals for this (natural gas) project," he said. "The actual natural gas line construction is not that difficult. We must get the industrial customers onboard - they make up 60-70 per cent of the demand for natural gas."
Stanley said having the natural gas line in this area will draw many industries, particularly those that have high heating and energy use. But the utility, itself, will also provide jobs during construction, and then 10-full-time operating jobs, he said.
EPCOR builds, owns and operates water, wastewater and electrical transmission and distribution infrastructure in Canada and the United States. It also provides electricity, water and natural gas services and products to residential and commercial customers.
About 125 years ago, the company began operating as Canada's first municipally-owned electric utility, serving the citizens of Edmonton. In 1996, it became EPCOR Utilities Inc., a stand-alone company owned by the City of Edmonton. It operates as a business with an independent board of directors, and $5.7-billion in assets.
Speaking about the natural gas project, at the press conference this morning (Sept. 21) in Kincardine, are Karim Kassam (L) and Stephen Stanley of EPCOR, Arran-Elderslie mayor Paul Eagleson, Huron-Kinloss mayor Mitch Twolan, Kincardine mayor Anne Eadie, and consultant J. Mark Rodger of Borden, Ladner and Gervais
Written ByLiz Dadson is the founder and editor of the Kincardine Record and has been in the news business since 1986.
Related Stories