Fuel Oil News

Fuel Oil News November 2014

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Sprague reSourceS Lp announceS cLoSing of MetroMedia energy acquiSition Sprague Resources LP announced on Oct. 1 that its wholly owned subsidiary, Sprague Operating Resources LLC, has completed the purchase of Metromedia Gas & Power, Inc.'s natural gas market- ing and electricity brokerage business assets for $22 million in cash and the assumption of liabilities under pre-exist- ing forward supply contracts. Sprague will now provide an addi- tional 10,000 commercial, industrial and municipal accounts with more than 15 Bcf of annual natural gas supply, and expand its service area to include Maryland, Virginia and the District of Columbia. Sprague will also now assist more than 7,000 commercial and indus- trial accounts with their procurement of more than 150 Megawatts of annual power demand. "The acquisition of Metromedia Energy's natural gas marketing and electricity brokerage business is an out- standing strategic addition for Sprague, strengthening our presence in core markets and expanding our geographic reach," said David Glendon, Sprague's president and CEO. "We look forward to leveraging Sprague's extensive sup- ply capabilities across a larger custom- er base, and continuing our successful growth by providing more customers with solutions for managing their energy requirements. We expect the transac- tion to be immediately accretive for unitholders, and support future distri- bution growth." aec: MaSS. utiLity to turn down new gaS cuStoMerS due to pipeLine conStraintS A utility in Massachusetts expects to start turning away customers who want to use natural gas for heating due to a lack of available natural gas, accord- ing to a recent article in the Boston Business Journal. Berkshire Gas spokesman Chris Farrell told the journal that Berkshire Gas expects to declare a moratorium on new customers for its Franklin County territory by the end of the year. "And then, by mid-2015, the United Illuminating subsidiary will have to do the same for its adjacent Hampshire County territory, where UMass Amherst is its biggest customer," the article stated. Berkshire Gas is declaring the mor- atorium because the utility can't get enough gas, according to the journal. "The company, which serves 38,000 cus- tomers in 20 cities and towns, relies on a pipeline spur that connects to Kinder Morgan's Tennessee Gas pipeline via a roughly 34-mile route through the Connecticut River valley area. And that spur is nearly at capacity. 'Physically, we can't force any more natural gas throughout our distribution system than we are currently feeding through it,' Farrell says." The gas supply constraints in Berk- shire's eastern territory could be "the tip of the iceberg," Farrell told the journal. Constrained gas supplies are also leading to utility rate increases else- where, according to a recent article on WickedLocal.com. National Grid recently announced that its customers would see their electric bills jump near- ly 50% from October to November. "This winter's electric rates, which kick in Saturday, Nov. 1, will be 37 per- cent higher than last winter's rates and 49% higher than current rates, accord- ing to National Grid spokesman Jake Navarro," the article stated. "The pipe- line supply of natural gas to the area is unable to meet demand during particu- larly cold periods, when furnaces are burning the fuel to heat homes." "It's going to be a very expensive winter," Secretary of Environment and Energy Affairs Maeve Vallely Bartlett predicted in August. "The grid has initiated a program encouraging [electric generating] plants to keep supplies of oil on hand during the winter, and Bartlett said natural gas plants could bring in liquefied natural gas, a more expensive fuel that can be delivered by ship when the region's pipe- lines are tapped," the article stated. To read more about this story and for a link to the original Boston Business Journal and WickedLocal.com articles, visit americanenergycoalition.org. nora renaMeS webSite The National Oilheat Research Alliance has renamed its new website NORAweb. org The new site, with a modern, user- friendly interface is a source for news, events, education, research updates and more. www.fueloilnews.com | fueL oiL newS | noVeMber 2014 3 DATELINE • Sprague Resources LP Announces Metromedia Energy Acquisition • AEC: Mass. Utility to Turn Down New Gas Customers Due to Pipeline Constraints • NORA Renames Website • ATA Urges Rejection of Push Poll on Truck Safety STATES - pg 10 • CEMA Sues the Conn. Department of Energy & Environmental Protection and the Public Utilities Regulatory Authority • Note from OHCNH's Bob Sculley • OHCNH Ad Campaign Launched • From PPA: Senate Passes Bill Promoting Conventional Oil Production in Pennsylvania FUELS/EIA - pg 11 • EIA Short-Term Energy Outlook Highlights • Heating Oil and Propane Expenditures Projected Lower than Last Winter • EIA: Propane Use for Crop Drying BUSINESS OpErATIONS - pg 19 • Attend the Work Truck Show® 2015 • Small Business Owners Positive Regarding Growth, Despite Challenges • Differences between Men and Women in Business HVAC/HyDrONICS - pg 32 • ASHRAE, AHR Expo Return to Chicago for 2015 • DOE Updates National Reference Standard for Commercial Buildings to 90.1-2013 • Grundfos Technical Institute Releases New Professional Training Tools for U.S., Canadian Markets • Weil Mclain's Mid-Atlantic Open House Featured News DateliNe BREAkING NEWS

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