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LCUB sells off ‘Macedonia’ customers


Lenoir City Utilities Board members voted to sell some of the utility’s gas customers in Roane County in exchange for a new gas gate station off Highway 321 at its meeting Monday, Dec. 20.

The gas customers — from Macedonia Industrial Park — would be sold to Oak Ridge Utility District, which would pay for a new gas gate station for LCUB in exchange for the new customers.

“Those customers probably don’t generate any revenue for LCUB, but they are part of our rate structure,” LCUB general manager Shannon Littleton said.

Councilman Eddie Simpson said, “We have been in the negative out there since day one.

“This gets our investment back in a roundabout way,” he added.

Littleton said, “We believe it is a good exchange; it will be very good for LCUB,” as well as for the Macedonia customers.

The LCUB board gave Littleton and Mike Strange, superintendent of the gas department, the ability to negotiate a contract with ORUD after bidding out the cost of the new gas gate station.

“I think this is one of the best moves we could make,” Simpson said.


Simpson moved to approve the motion; Councilman Harry Wampler seconded. The motion was unanimously approved through a newly enacted roll call vote for each agenda item.

In other business, LCUB:

• Authorized LCUB management to seek bids for a gas line extension to the Dunn Ridge/Beall’s Chapel area.

The extension could cost about $120,000 and would provide gas for customers in subdivisions not currently covered by any utility.

“I’d like to get into this area as soon as possible,” Littleton said.

The Board will approve any bids at its January meeting, once it has specific cost estimates involved in the project.

• Authorized the water department to request Lenoir City Council to approve a Drought Management Plan required by Tennessee Department of Environment and Conservation.

• Approved a TVA in-home energy evaluation pilot agreement.

• Approved a TVA notice to amend/terminate an enhanced security deposit agreement and proposed agreements and deposit assurance program sample agreements.

• Removed the names of Gene Hamby and former Lenoir City mayor Matt Brookshire from LCUB signature authority on all LCUB bank accounts. LCUB voted to add the names of Tony Aikens and Jim Shields.

• Approved a time-of-use rate structure passed along from TVA.

 

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