Council considers interlocal agreement with PREA for regional gas pipeline to provide redundancy

City Gas & Water officials presented a proposed interlocal agreement with the Penny Rile Regional Energy Agency (PREA) on Jan. 6 to participate in a regional pipeline project that would improve redundancy for Clarksville’s natural gas supply. Mark Riggins, appearing for Gas & Water, said PREA would construct the long pipeline from Kentucky to the state line and Clarksville would build the local infrastructure to tie into the new line near the industrial park.

Riggins told council that PREA’s design would reach Katy’s, Kentucky, and that PREA’s financing requires customer commitments; the interlocal agreement provides assurances needed by PREA and its financers. On the Clarksville side, the city would thereafter pay for gas it takes and pay PREA for transportation service; the city is also hiring the same consultant (D2 Energy) to design the connection to achieve cost savings.

Council members asked about cost, operation and whether Clarksville would be required to pay if the line is not built. Riggins said PREA’s construction and the city’s payments are contingent on the pipeline being built and that if the pipeline is not constructed the city would not pay.