Atlanta Gas Light has filed its plan to build a network of fueling stations across metro Atlanta and along major roads in Georgia offering compressed natural gas.
The filing came as the price of gasoline and diesel fuel at pumps in the area hit and crossed the $4 mark. AGL wants to prime the market for CNG-fueled cars and trucks by constructing the stations.
The current retail price of CNG is running well below the price of an equivalent amount of gas, AGL said. AGL views the disparity as an opportunity to build the CNG market. The company says natural gas is clean and abundantly available in the U.S.
AGL wants to use $12 million from the Universal Service Fund to prompt private investors to build 10 to 15 stations over five years. The fund normally is used to extend pipelines to areas where there are new businesses and homes being developed, but the soft economy has eliminated that need.
Private retailers would own and operate the CNG stations. They would buy natural gas from gas marketers. Commercial fleets are expected to be the primary initial customers.
AGL will own and maintain the CNG equipment. It will charge for gas delivery and operations and maintenance.
The plan was submitted to the Georgia Public Service Commission, which will consider it this summer.
