THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, June 18, 1995 TAG: 9506180073
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY BETTY MITCHELL GRAY, STAFF WRITER
DATELINE: RALEIGH LENGTH: Medium: 59 lines
A measure that could help bring natural gas service to as many as 39 counties, including much of northeastern North Carolina, was signed into law last week after approval by the General Assembly.
The legislation, known as ``Use It or Lose It,'' is intended to speed up the process of bringing natural gas to areas not now served, according to W.C. ``Bill'' Owens Jr., a Pasquotank County Democrat and the bill's primary sponsor.
Effective July 1, the law requires gas companies that have franchises in some area of the state to provide natural gas to ``all areas'' of that franchise territory by July 1, 1998 - or lose their monopolies in those areas.
Under the measure, companies awarded future franchises would have three years to supply natural gas throughout the newly awarded area - or lose those monopolies.
The legislation was ratified Thursday.
Owens said Friday that the new law, when combined with other measures before the General Assembly this session, is an important first step in providing natural gas service to all areas of the state.
Natural gas companies in North Carolina have been assigned franchise areas that include 18 counties lacking natural gas. A bill sponsored by Rep. Robert C. Hunter Jr., a McDowell County Democrat, would assign franchises to 21 additional counties that have not been covered by a natural gas franchise.
These 39 counties would be the primary beneficiaries of the new law, Owens said from his office in Elizabeth City.
``It's a long way from being a quick fix to the problems of natural gas,'' he said. ``But it's a step in the right direction.''
Owens said the new law is intended to prompt faster delivery of natural gas service by raising the specter of competition from other gas companies to franchise holders who have not yet provided service to an area.
``It's almost a form of deregulation,'' he said.
The corporate spokesman for North Carolina Natural Gas, the Fayetteville company that holds the natural gas franchise for much of northeastern North Carolina, was not available for comment Friday.
North Carolina Natural Gas provides gas and related services to about 120,000 customers in south-central and eastern North Carolina. The company's customers are residential, commercial and industrial users in 60 communities and on four municipal gas distribution systems.
Local economic developers have said repeatedly in recent years that the lack of natural gas service in much of northeastern North Carolina has been a major stumbling block to industrial recruitment, because many manufacturers do not want to open plants in areas without natural gas service.
Owens said he hopes the new law will also prompt the state to become more involved in helping to bring natural gas to areas not now served as part of its industrial recruitment efforts. by CNB