Friday, February 21, 2014

We're helping address state propane shortage

Governor Walker announced today an agreement between the State of Wisconsin, Madison Gas and Electric (MG&E) and our company that allows the state to access more than 117,000 gallons of liquid propane to help address the current shortage throughout the state. This is a physical exchange transaction and not a sale of the propane.
The propane will be used as a contingency plan to help meet the needs of low-income citizens qualifying for energy assistance in areas of the state where the supply is constrained, and it will be replaced/replenished by the state during the non-heating season. Propane is a heating fuel for more than 250,000 households in Wisconsin.

Under the agreements with the utilities, the state can access up to 42,000 gallons of propane currently stored at our Oak Creek facility, with the possibility of an additional 30,000 gallons from our Tomah facility. MG&E is providing up to 45,000 gallons of propane from its facility in Prairie du Chien. The Wisconsin Department of Administration will be responsible for coordinating and paying all costs associated with loading and transporting the propane.

The Oak Creek site has propane as a redundant backup fuel source in the event that natural gas backup fuel is unavailable or compromised for generation black start needs. The Oak Creek site has two 40,000-gallon tanks. Approximately 38,000 gallons of propane will remain on site.

The Tomah site supports natural gas peaking and consists of six 30,000-gallon tanks of propane. The propane is used as a backup fuel and converted to natural gas at times of high peak demand or when the natural gas distribution system is in need of greater gas pressure ‘packed’ into the distribution system.

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