Northern Lights Proposes Gas System

Northern Lights Inc. may build a $12 million natural gas system to serve Sagle, Priest River, Oldtown and Newport, General Manager Jon Shelby said Friday.

If approved by the cooperative’s members, the system could serve as many as 4,500 business and residential customers who now have no access to natural gas, he said.

The system would connect with a Pacific Gas Transmission pipeline south of Sandpoint, Northern Light’s headquarters.

Shelby said the electric cooperative undertook a feasibility study of the project several months ago after Rep. John Campbell, R-Sandpoint, approached officials with the idea.

“It became very apparent there is a very real need out there,” he said.

Shelby said Northern Lights will ask members, probably next month, to approve bylaw changes that would allow the cooperative to enter the gas business.

Construction will take two years after permits are in hand, he said.

Shelby said the cooperative would keep hookup fees to a minimum to encourage customers to connect to the system. Costs would be recovered in rates.

Many customers, he noted, already have propane-fueled furnaces that could easily be converted to natural gas.

In 10 years, participation could exceed 80 percent, Shelby said.

The feasibility study for the project was prepared by Sunrise Engineering. The project could be extended to other areas in the future, Shelby said.

, DataTimes