Kevin Murphy, Leader Correspondent
The northern half of the town of Aniwa will be able to heat and cook with natural gas, as the Wisconsin Public Service Commission this week approved City Gas of Antigo’s service request for that portion of the town.
City Gas was authorized to serve the village of Aniwa in May 2011 by extending a pipeline east from Marathon County. Within a year, City Gas was getting requests for service in the town, said George Bornemann, the utility’s executive vice president.
The utility could not serve customers outside of the village because Wisconsin Public Service Corp. had the authority to serve the town since 1969. However, WPS had signed up only a handful of customers near Birnamwood in the southern part of the town, Bornemann said.
WPS also informed residents outside of the village of Aniwa that it would not serve them, according to information City Gas filed with the PSC.
City Gas filed a request with the PSC in September 2012 to serve a portion of the town, but while the request was pending, it asked the PSC to shelve the request until it completed a major gas main project in downtown Antigo during the summer of 2013.
Meanwhile, City Gas and WPS negotiated a territorial agreement to permit City Gas to serve the northern half of the town while WPS retained the southern half.
City Gas then petitioned the PSC to divide the town between it and WPS. The PSC approved the arrangement Monday.
City Gas will extend a two-inch gas main from state Highway 52 and County Road HH in Marathon County east along Highway 52 to the intersection of Highway 52 and U.S. Highway 45.
The utility estimates the cost to construct the 6,705-foot line at about $24,000.
The initial extension will serve only six residential and one commercial customers, Bornemann said, but he expects more to sign up over time and the main to extend farther east.
City Gas does not charge customers to extend the gas line for the first 60 feet into a property. Thereafter it bills at $2.24 per linear foot, which is the utility’s actual cost, Bornemann said.
The cost might increase slightly May 1. There is also a one-time $20 meter and connection fee.
City Gas rates are regulated by the PSC and can change as the cost of gas from City Gas’ supplier changes. The same principle applies to electric utilities.
City Gas did not conduct any research to gauge anticipate demand for its service, Bornemann said.
Asked if natural gas is a cheaper fuel to use than propane, Bornemann quickly said, “yes.”
The average residential customer uses about 1,000 therms of natural gas annually; the current charge is about $726, he said.
Given the price difference between natural gas and other fuels, “we don’t have a huge problem to convert customers,” he said.
The utility will send postcards to residents along and ahead of the pipeline inviting them to inquire about service costs and fuel prices, he said.
Construction of the gas main into the town will begin this spring and the line should be operational this summer, Bornemann said.
Efforts to contact Dan Lex, Aniwa town chairman, and Tammy Resch, town clerk, about the gas service were unsuccessful.