Chesapeake to expand natgas service territory in Florida
DOVER, Del. -- Chesapeake Utilities Corporation announced that the Company has entered into an agreement with Pensacola Energy to transport natural gas to the City of Pensacola and other industrial users in the surrounding area in Escambia County.
This project will increase Chesapeake Utilities' footprint in Northwest Florida while complementing its natural gas, propane and electric services throughout the state.
"As our Company grows throughout the state of Florida and beyond, our employees are working continuously to identify opportunities that meet the needs of customers while furthering our strategic direction," said Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. "This project is another example of our commitment, and we're excited to expand our service in Northwest Florida to make the efficient, safe and economic option of natural gas available to more residential, commercial and industrial customers."
The Company operates in Florida through its subsidiary, Florida Public Utilities Company (FPU), which services approximately 74,000 residential and commercial natural gas customers, 31,000 electric customers and 16,000 propane customers throughout Florida.
Chesapeake Utilities will construct an interconnection between Pensacola Energy and Florida Gas Transmission Company's interstate facilities. The project is a $36 MM investment and is part of the Company's strategic plan to provide additional transportation and delivery services to residential, commercial and industrial customers throughout Florida and the entire Chesapeake Utilities' service territory.
The project was reviewed and approved by the Federal Energy Regulatory Commission in February, 2017, and the Company will seek the required permits from local agencies before beginning construction in June, 2017. The project is expected to be placed into service in Q1 2018 and is projected to generate annualized margin of $5.1 MM.
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