hamilton - A cold November translated into impressive sales figures for the Northwest Alabama Gas District (NWAGD).
“November was a very good month for us,” NWAGD Manager Heath Reed said during the gas district’s December meeting held on Friday night, Dec. 7, at the Holiday Inn in Guin prior to the company’s employees Christmas party.
The general manager said that in the month the company opened meters for 335 new services. This was 143 more than November 2017.
“The people in our area are realizing the advantage of natural gas—it was all the high electric bills last winter.”
Reed also said that were substantially more gas sales than the previous year with the gas district selling 230,000 mcf (thousands of cubic feet)—160,000 more mcf than the precious year.
Reed said this was due to a colder November and the increased customer base.
In other business, the board:
• Attended the NWAGD’s Christmas party at the Holiday Inn in Guin.
• Approved step-raises for six employees;
• Accepted a bid for a 2019 Ford F-150 SuperCab 4x4 from West Alabama Ford in Sulligent for $25,489.68.
• Was notified by Reed that a 2011 Ford F-250 and a 2013 Ford F-250 would be placed in surplus beginning the first of the year.
The member municipalities are given the opportunity to purchase the vehicles from the gas district before they are placed on bid.
• Entered into executive session for 15 minutes to discuss the potential purchase of land.
• Heard from Reed that NWAGD’s assesment on a gas pool is increasing in 2019 from $14,250 per month to $26,585 per month to retire a bond issue.
Reed explained that the companied purchased small portions of three gas pools through a bond about 10-12 years ago.
The predictions at the time estimated gas being worth $6 per mcf (thousands of cubic feet) in 2018. However, natural gas is now being bought at just $2.50 per mcf.
“It’s upside down,” Reed said.
The company is able to pull a small amount of gas pool per day at a 20-cent discount due to its ownership.
Reed said the bond on Pool #1 is set to pay off in 2019 with the increased assessment. The entire project will be paid off in 2024.
Reed said that the Pool was producing profits the first few years after the gas district bought in. He said that there are possibilities the pool will be profitable in the future if the costs of gas were to rise.
(Writer’s note: The Northwest Alabama Gas District is composed of the municipalities of Guin, Hackleburg, Hamilton, Haleyville Sulligent and Winfield and is represented by the municipalities’ mayors: Guin - Max Maddox; Hackleburg - Darryl Colburn; Hamilton - Bob Page; Haleyville - Ken Sunseri; Sulligent - Scott Boman; and Winfield - Randy Price. SBJ)
See complete story in the Journal Record.