Othello officials research natural gas expansion

OTHELLO — Two new businesses want to come to Othello, but current natural gas pipelines must be expanded first.

As a result, Othello officials called a natural gas summit with representatives from Cascade Natural Gas Corporation, which provides service to the city.

Officials wanted to know about expansion funding requirements for large industrial customers and if it’s possible to have the work done quickly before the businesses decide to go elsewhere.

Solutions weren’t reached at the Wednesday meeting, but a Cascade Natural Gas representative recommended officials meet with gas ?supplier Williams Northwest because it also has a pipeline in the Othello area.

Representatives from the City of Othello, the Port of Othello, Adams County and Rep. Doc Hastings’ office, R-Pasco, attended the summit at Othello City Hall along with area businesses people.

Othello Mayor Shannon McKay said there needs to be changes made because a company placed the city on a short list to locate north of town.

The Port of Othello is dealing with an agricultural company interested in coming to the area.

Othello Port Administrator Mike Beardsley said businesses won’t come to the Othello area if there isn’t natural gas availability.

“We have had large natural gas users coming through this area,” Beardsley said. “If it’s not here, they won’t stop and will go somewhere else.”

Cascade Natural Gas Engineering Director Kevin Raschkow said the current Othello system was probably built in 1960 and is at 100 percent of capacity. There doesn’t appear to have been any major enhancements to the system since it was built.

Cascade can build a distribution network at relatively competitive prices for different loads.

With Cascade, if a couple of large industrial customers connected to the system, costs could range between $1 million to $2 million for upgrades.

But if there’s constraint upstream on the Williams’ transmission system, “now you’re talking about big dollars,” he said.

For Williams’ side of the work, he cited $50 million to $70 million costs because the pipeline is constrained.

He said the constraint was related to high voltage transmission lines on the electrical side and the pipeline being at capacity.

He added he’s speaking in generalities and not about specific customers.

It’s a challenging situation for communities like Othello, Raschkow said.

The area is locked in the middle of sparse land, he explained.

“We want you to grow,” Raschkow said.

Also, there is a “smidge” of capacity near Moses Lake, but Moses Lake is growing, Raschkow said.

Cascade Natural Gas Distribution Contract Manager Mickey Patton said Cascade is specifically governed regarding what costs they can cover.

Industrial customers stand alone and generally, costs are borne by the customers receiving the benefits, she explained.

Residents cannot be asked to absorb expansion costs, she added.

Costs are tied to customers’ contracts, she said.

Roger Krug, of Adams County Economic Development (ACDC), said a temporary solution could be to use storage tanks.

A funding request was added into a stimulus package, but the state won’t fund improvements for private companies, Krug added.

Adams County engineer Bill Johns said it appears Cascade is saying there’s no longer speculation when planning for the future.

Patton said Willams built the 16-inch line with a cushion for growth when it was a “different world.”

Patton also pointed out Cascade is regulated by the Washington Utilities Commission and some things are beyond the company’s scope.

Despite the challenge, Williams is looking for interested parties interested in expansion, she said.

After the meeting, Adams County Commissioner Jeff Stevens said the county asked Rep. Cathy McMorris Rodgers, R-Spokane, to look into the matter.

McKay said the city will do its part to bring four miles of gas pipeline from the area near Bruce to Othello.