utilities

Gas line extension survey: How this should work

The Problem

Deciding whether to go ahead with a project like the Sage Mesa (or Husula Highlands) gas line extension is difficult under the "opt-in model" because:

  • residents don't know whether they support or oppose the project until they know the project's cost, but
  • the project's cost depends on the number of people who opt-in.

 

So a simple "Are you in or out?" question will not work.

Instead, the RDOS can ask a willingness-to-pay (WTP) question: "What is the maximum amount you are willing to pay for a gas line extension on your street?".  We can then use the WTP information to determine whether the project should go ahead.

Natural gas for Sage Mesa and Husula

Just a heads-up: A resident from Sage Mesa asked me to look into natural gas service for that neighborhood.  His understanding is that the economics are not quite good enough for Fortis to invest in the infrastructure that is required.  Although a gas pipeline runs through Sage Mesa, a reducing station (the photo is of a Russian reducing station) is apparently required (update: a reducing station is not required).  Fortis told him they would run natural gas service to his house if he paid for the reducing station.

Neighborhoods: