JAMESTOWN – The Jamestown Board of Public Utilities met on Thursday afternoon and approved a contract to purchase the pipeline currently used to transport natural gas from Mayville to the Carlson Generation Station (Power Plant) in Jamestown.
According to a media release from the BPU, the $5.4 million dollar transaction with Emkey Transportation, Inc., which sought to sell the pipeline, will transfer ownership of the pipeline to the BPU.
Under the contract, the BPU will become the owner of approximately 27 miles of underground pipeline and associated equipment which includes a natural gas fuel compressor located in Mayville and its interconnection to the Tennessee Gas Pipeline.
Emkey Gathering, LLC, which currently operates the pipeline and equipment, will continue to operate and perform maintenance on the pipeline and equipment under a separate agreement.
Emkey Transportation, Inc., is an affiliate of Emkey Energy, LLC and is based out of Erie. The company owns and operates Emkey Gathering, LLC.
The pipeline and equipment system has been in use since 2001 when the BPU began to operate gas-fired equipment at its generating station.
Officials with the BPU say the new pipeline ownership contract will enable the BPU to continue receiving service through and beyond the expected 30-year life of its gas-powered turbine generator.
BPU General Manager David Leathers said the contract will help to provide cost certainty for electric customers during the next 15-20 years.
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