Atlanta Gas Light Company to Provide Pipeline at Fort Gordon
August 13, 2003
ATLANTA, Ga. - August 13, 2003 - Atlanta Gas Light Company (AGLC) and Fort Gordon have reached an agreement for AGLC to replace, operate and maintain the fort's natural gas pipeline as part of the U.S. Department of Defense's process of privatizing utilities on military bases.
Under the agreement, AGLC will replace 23 miles of aging pipeline to offices, residences, mess halls and other facilities at the fort, which is located near Augusta and is home to the U.S. Army Signal Center. Work on the project will begin soon and is expected to be completed by winter 2004. Plans are underway to file this agreement with the Georgia Public Service Commission.
"This is AGLC's first opportunity to own and operate a pipeline on a military base," said Kevin Madden, executive vice president of distribution and pipeline operations at AGL Resources (NYSE:ATG), parent company of AGLC. "In the past, we operated the pipes right up to the meter at the gate at Fort Gordon. But the Department of Defense wants to get out of the utility business and let the private sector maintain and own these systems. Eventually most utilities on military bases - from wastewater treatment to natural gas and electricity - will be privatized."
The Army expects to realize long-term savings through its agreement with AGLC. When the project is complete, Fort Gordon will have a new pipeline system that is upgraded to meet strict federal standards.
"This agreement with AGLC helps the Department of Defense reach its privatization goals for Fort Gordon," said Fort Gordon's Energy Manager. "We had an on-going gas transportation agreement with AGLC. This agreement was a logical step in our privatization process."
Once the new AGLC pipeline is completed, said Fort Gordon's Energy Manager, the old pipeline will be decommissioned safely, according to Department of Transportation requirements.
Fort Benning, near Columbus, is the only other military base in Georgia that has privatized its natural gas operations. Fort Benning's agreement is with United Cities Gas Company of Columbus.