Construction and Restoration
We have an easy to fill out Interest of Service form that will tell us you are interested in getting natural gas to your home. Currently, we cannot accept any money, and there is no obligation, so if you are interested sign up now!
Right of Way (ROW) Clearing
Poor Air Quality: Increasingly, residents and even business, have been switching to wood stoves in an attempt to reduce fuel oil use and save money. However, these heating devices are severely impacting winter time air quality. The increased PM2.5 particulates are creating unhealthy air and, thereby, putting our community at risk of economically damaging EPA sanctions.
Together, the negative economic and environmental impact of burning fuel oil and other traditional fuels (i.e., wood) are increasingly ominous threats to a healthy and prosperous living and working environment in the Borough.
Natural gas, which is plentiful on the Alaska North Slope (“ANS”), is cleaner burning than fuel oil. Moving rapidly to convert our homes and businesses from high-cost oil to cheap, cleaner natural gas is the right thing to do – both for our quality life and our individual, and community bottom line.
The Fairbanks North Star Borough Gas Distribution System Analysis, dated June 29, 2012. The primary conclusions of the NEI Report are as follows:
“Construction and operation of a piped natural gas distribution system in the high-density and medium-density areas of the FNSB, and a propane distribution system in the low-density areas of the borough, has the potential to reduce fuel costs for space heating of residential and commercial structures from approximately $524 million in 2021, the first year of operations, to about $210 million, a savings ofroughly $315 million annually, a savings of 60 percent compared to the status quo using fuel oil and wood.”
“Similarly, converting to natural gas for space heating will reduce the overall emissions of PM2.5 [particulate matter that is 2.5 microns and smaller] in the Fairbanks area by a significant amount. The conversion to natural gas will also reduce NOx and SO2 emissions, which are precursors to the formation of secondary PM2.5 in the atmosphere. Combined, these emission reductions will help bring the Fairbanks area into attainment with the ambient PM2.5 air quality standard. PM2.5 emissions are estimated to decrease from approximately 2,200 tons per year to less than 200 tons per year.”
The IGU will begin Phase 1 construction in 2015, and engineering, design, permitting and financing acquisition has already begun. IGU anticipates delivering first gas, immediately upon its availability, estimated by AIDEA to be in 2017.
To date, IGU has received a line of credit of about $38 million through low cost, tax-free loans and grants from the State of Alaska. This low cost financing is being used to both expedite construction of the needed gas distribution system in Fairbanks-North Pole and surrounding areas and drive down the cost of that system. This comes from sponsored legislation (SB 23) totaling over $362.5 million of funding in support of delivery of LNG to Interior Alaska communities and construction of an expanded local distribution system.
This package includes $150 million in bonding authority, $125 million in low-interest loan availability, $30 million in tax credits for construction of natural gas storage facilities and $57.5 million in zero percent interest grants to assist the community in achieving its goal of providing $15/mcf gas (roughly $2.00/gal fuel oil) to as many Borough residents and business possible, as quickly as possible.
Additionally, the FNSB has authorized a $7.5 million line of credit.
Recognizing the challenge and burden this places on home owners, IGU is currently evaluating the creation of a low-interest loan program to assist homeowners in improving or replacing their home heating systems. Other energy efficiency and weatherization programs are also offered by the State and may be used for conversions.