Madison pitches natural gas pipeline
The town of Madison is pitching its own plan to build a natural gas pipeline through 12 communities in central Maine, competing with an existing proposal by Kennebec Valley Gas Co.
Residents in November will vote on whether to support a $72 million bond to build the pipeline from Richmond to Madison, where natural gas would also fuel an electricity generation facility at Madison Electric Works, according to the Kennebec Journal. Town Manager Dana Berry said the pipeline and the gas-fired facility would reduce electricity rates for residents and would not increase taxes. The town began exploring the idea of a natural gas pipeline in April as a way to reduce heating costs for downtown buildings. Should residents approve the bond, the town will approach other communities and businesses about the project, as well as seek regulatory approval.
Last month, the Maine Public Utilities Commission gave initial support to an 80-mile pipeline pitched by Portland-based Kennebec Valley Gas, which is seeking tax increment financing deals from each of the 12 communities to help finance the project. In July, a committee representing the communities gave tentative support to a TIF deal for the $70 million-$80 million project. Tony Buxton, an attorney and an investor in the Kennebec Valley Gas proposal, told the paper he questions whether Madison can finance a gas pipeline with 100% debt, but Madison officials said they believed they could find buyers for $72 million in bonds.
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