Atlanta Gas Light won approval from state utility regulators Tuesday to build a network of compressed natural gas fueling stations across the state.
AGL, the state's largest natural gas supplier, wants to build between 5 and 10 stations in metro Atlanta and then add more statewide. The company will begin working on proposals for the CNG projects and hopes to sign contracts with private investors next spring or summer -- and then start construction on the fueling stations by late 2012.
AGL would use $12 million of a public universal service fund to encourage private investors to build CNG fueling stations. The fund is 40 percent backed by money from its industrial customers. Residential and commercial customers do not contribute to it as a part of their utility bills.
There are about 112,000 natural gas-fueled vehicles traveling on U.S. roads, according to Natural Gas Vehicles for America, the trade and lobbying group for CNG-fueled vehicles. That would include buses in MARTA's fleet, which has its own fueling facilities.
There are about 1,000 natural gas fueling stations in the United States. About half are open to the public, the trade group said. There are five CNG stations statewide, including two in the metro Atlanta area, but these are not owned by AGL.
Money from the fund is used normally to extend pipelines to areas where new homes and businesses are being built, but the sluggish economy has curbed that. Instead of letting the money go unused, AGL plans to use it to help spur CNG development.
Some PSC members, as well as the agency's staff, said prior to Tuesday's vote that they supported AGL’s proposal but want to limit it to commercial fleets until it’s clear the market will support such a venture.
“I have a fear that we’re going to go out and do something, and these stations are going to be vacant three, four years from now, and people are going to say, ‘Why did you do that?’” PSC member Chuck Eaton said.
