Utility Pegs Very Attractive Rate for Natural Gas as a Transportation Fuel

Huntsville Utilities (HU), the municipal utility serving metropolitan Huntsville, Ala., has set rates for compressed natural gas (CNG) for use as an alternative transportation fuel.

The special natural gas rate of $1.80/Mcf, the utility says, will cover the cost of moving gas through its distribution system to end users – mainly CNG station developers. There is also a monthly service charge of $200.

By comparison, HU's rate for residential natural gas customers was $8.71/Mcf in November 2012.

The utility says CNG station owners will be responsible for procuring the supply of natural gas and transporting it to the city's natural gas gate station.

‘HU recognizes the growing interest in this technology,’ says company CEO Bill Pippin. ‘We hope this new rate will help spark interest and investment in what has become a very affordable alternative fuel for companies and agencies with motor vehicle fleets to finance.’

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