August primary proposal could mean natural gas services for distant customers

OTSEGO LAKE TWP. — A local energy company will seek two franchises in the Tuesday, Aug. 5 primary.

Presque Isle Electric and Gas Co-Op is asking for a natural gas franchise in Otsego Lake Township and an electric franchise in Corwith Township.

Presque Isle Electric and Gas approached the Otsego Lake Township board and inquired whether it would consider a franchise.

If this proposal does pass, it would create a future opportunity for those outside the service area of current gas and electric companies to receive natural gas services, possibly for the first time.

“It's not a big deal (now),” said Tom Wagar, Otsego Lake Township supervisor. “But it is something that could help in the future.”

Although no future plans have been laid out on either side, Wagar said it is possible that homes that currently do not have access to natural gas could be provided with the utility in the future. However, it probably would not be for an extended amount of time.

“It will be up to (Presque Isle Electric and Gas),” Wagar said. “Unless gas prices go up again, in maybe five to 10 years we might see something happen.”

Wagar said he had not heard if Presque Isle Electric and Gas had any plans to establish an official headquarters in Otsego Lake Township if the proposal passes, but the company would be able to begin laying pipe and working to provide natural gas to customers.

Brian Burns, president and CEO of Presque Isle Electric and Gas, said the biggest goal for the company would be to provide those that live in the remote locations of Otego Lake Township, especially those outside of different service areas, with natural gas services.

“The reason we exist is to bring service to those who don't have it,” Burns said. “It's definitely our No. 1 priority and goal.”

Presque Isle Electic and Gas is asking for a 30 year franchise. Wagar said the length would be more of a financial security measure for the company than if it was to ask for a smaller franchise.

“They wouldn't want a five year franchise and then have us kick them out after they invest so much,” Wagar said. “They want some value to their investment.”

Wagar said he is not aware of too much opposition to the proposal, although there are still some who do not want Presque Isle Electric and Gas to conduct business in Otsego Lake Township.

According to Wagar, those opposed are mostly local energy companies.

Wagar received a letter from Presque Isle Electric and Gas saying its only concern as far as opposition is DTE and a few other companies that already provide services to a number of customers in the area.

If the proposal is passed by voters, Burns said there are no immediate plans scheduled to be implemented in the short term.

“We view this project on a long-term planning approach,” Burns said.

A 30-year electric franchise renewal is also being requested by Presque Isle Electric and Gas in Corwith Township.

According to Vern Kassuba, Corwith Township supervisor, only two properties are beneficiaries of the electric service, but without it, they would not be eligible for service from any other companies as they are outside the other service areas.

Presque Isle Electric and Gas already provides services to residents in neighboring counties including Presque Isle and parts of Cheboygan, Alpena, Alcona, Oscoda, Montmorency and Emmet counties.