Narrow OK for new natural gas co-op
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The council also approved, on a 3-2 vote with Council President John Meredith and District 1 member Michelle Watkins voting against, the formation of the North Alabama Public Energy District.
Why it matters: The new co-op will explore expanding natural gas infrastructure north of the Tennessee River, including a new pipeline, which could have big impacts on the region's residents and industry.
What they're saying: Wes Kelley, president and CEO of Huntsville Utilities, said Thursday it's "an opportunity for the three large cities on the north side of the river to come together ... and work through the options and scenarios, and costs and resources that are available."
- Scottsboro and Athens have already signed on, and a concern for other council members was Huntsville possibly losing its seat at the table if the motion wasn't approved.
- Kelley said if Huntsville voted no, Athens and Scottsboro would still pursue expanding natural gas options in North Alabama, just without Huntsville.
Scottsboro Mayor Jim McCamy told the council that "Scottsboro and Jackson County are literally at the end of the line," for gas infrastructure.
- He said the city has had to turn away new industry due to limited supply and even the local hospital's supply of natural gas has been curtailed multiple times.
Zoom in: Huntsville is bumping up against its capacity too, Kelley said, and last year had to pay penalties for exceeding its allowable threshold.
- Entities have asked for large natural gas availability, he said, and the apparent solutions through private pipeline companies are very expensive.
- The co-op will look at what a publicly-owned natural gas infrastructure looks like, and whether it's cost-effective and more prudent than relying on private companies.
Yes, but: Meredith and Watkins were unconvinced, expressing concerns about the lack of oversight for the new co-op, the lack of detailed impact studies and unanswered questions as to what any projects may look like or require from Huntsville.
- "You can't just go into a business blindly," Watkins said. "You're planning on moving forward with it with the City Council's blessing. ... We should know those risks before we make these decisions."