Construction and Restoration

Yes! Crews are working to restore the areas after installation. This may take until September, but your area will be restored to the same or better condition than before. That includes grinding down stumps and seeding grass. If the restoration does not happen before the snow flies, this will be done first thing in the spring.

AIDEA expects to confirm a gas supply by the end of 2015, and plans to install service lines will follow.Sign up for the Quarterly E-Newsletter or Weekly Construction Updates and Facebook for the latest!
IGU proposes hook up fees to cost $50 for the first 100 feet of installed service line to your home. If your residence is located further than 100 feet from the main line, an additional amount is estimated between $10-$15 per foot.

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!

Unfortunately, the ROW or PUE with pipe installed must remain free of obstructions within the ground and above so as to maintain the pipe and install service lines to homes. Even if the pipe was bored under the ground, this measure is still necessary to maintain the pipe safely.

Right of Way (ROW) Clearing

1) a legal right of passage over another person’s ground 2) a: The area over which a right-of way exists b:the strip of land over which is built a public road c: the land occupied by a railroad especially for its main line d: the land used by a public utility (as for a transmission line)
a portion of land reserved for the purpose of providing utility services by an agency or public utility – FNSB Chapter 17.20
Phase I residents could see activity in their neighborhoods as soon as Feb. 26, 2015. As the contractor’s schedule becomes available, residents will be notified on the progress as far in advance as possible
Phase I residents could begin to see clearing activity as soon as the first of March.
First, a surveyor will be seen taking measurements and surveying the property for any existing structures or vegetation that may be in the ROW. They will establish perimeter of the property for construction needs. If there are any bushes, shrubs or trees within this area, they will be removed by the contractor. If there are existing personal property in this area, it is up to the homeowner to remove it.
Crews will cut trees that are larger than 6 inches in diameter into logs that will be left in the ROW for anyone to pick up on a first come, first serve basis. Collection of such wood should be done when the contractor has moved past the site. Please be respectful of workers and take care around work areas when collecting wood.  Obey all construction signs and warnings.
The installation of the (mostly) 2″ natural gas pipeline is scheduled to begin in May. Stay informed bysigning up with the IGU newsletter for any updates on construction.


IGU was created as a public utility by the FNSB through Ordinance No. 2012-52, after acquiring an area-wide natural gas utility power by transfer from the Cities of Fairbanks, Alaska and North Pole, Alaska. IGU is a wholly owned subsidiary of the FNSB, with the primary objective to provide low cost, clean burning, natural gas to the largest number of customers in the FNSB as soon as possible. Its goal is to bring both economic and environmental well-being to the FNSB area, and provide an important and necessary benefit to the public.
IGU was created specifically to help ensure natural gas is made available to the largest number of customers in the FNSB possible, in the shortest amount of time possible, at the lowest cost possible. IGU was created by Interior Alaskans to help ensure that promise is realized. As a municipal utility the IGU may take full advantage of partnerships available through local and state agencies to best serve the interest of the community.
High Cost of Energy: FNSB residents and businesses presently rely upon fuel oil as their primary source of energy. The high cost of fuel oil is threatening the economic viability of our community. If those costs continue to increase on average of 10% a year, it will be devastating.

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.

Yes! While the cost to deliver natural gas is still being determined, IGU is working to deliver natural gas to the meter for $15/mcf – which equals approximately $2.00/gallon equivalent of $4.00 oil. IGU is actively reviewing options for homeowners to convert their heating systems to natural gas for savings from Day One. These plans will be rolling out soon!

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.”

One of IGU’s specific goals is to deliver natural gas to FNSB homes at a Borough-wide postage stamp rate of $15/mcf, which is just over one-half the current cost of fuel oil. This pricing is expected to be competitive with and reduce the use of wood for space heating. IGU’s lower priced gas could potentially reduce the FNSB’s space heating costs up to $315 million annually.
Currently, IGU staff are located in the KeyBank Building, 100 Cushman St., Fairbanks, AK, Suite 501.

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.

The IGU distribution system is estimated to cost about $300 million. This price does not include storage or transportation costs.

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.

Assuming price delivery to the meter at $15/mcf could save residents 40% on heating costs, however individual savings are hard to predict.

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.

No. The Directors serve in a volunteer capacity and do not get paid a stipend. They meet every first and third Tuesday. All meeting agendas are posted on the IGU website and are open to the public. Information about each director, including a photo and biography is available on the IGU Board of Directors page.
Visit the RFP page and sign up to receive notifications of bid requests.