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January 9, 2014

Summit to pay for delays in natural gas delivery

Summit Natural Gas will pay for the savings its municipal customers in Augusta would have experienced had the company met a Nov. 1 installation deadline for two city projects to convert to natural gas.

The Morning Sentinel reported gas began flowing to the Augusta City Center Tuesday and the Cony High School/Capital Area Technical Center’s shared campus started operating on gas late last week. Service to other buildings as part of the contract with Augusta is expected to start later this month.

City officials told the paper the delays won’t affect their projected savings, as the contract requires Summit to pay for installing propane tanks to heat the buildings in the interim and to make up the difference in price had the municipal customers been using natural gas since the Nov. 1 deadline.

The company’s project through the Kennebec Valley was delayed by weather and a dispute with contractor Schmid Pipeline Construction, which has filed a $72 million lawsuit against Summit and took its workers off the job site in November.

Last week, the Kennebec Journal reported natural gas began flowing to the area’s first residential customer through pipelines built by Summit competitor Maine Natural Gas.

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