Energy Transition - Rural Gas Co-ops
On a post I shared earlier this week I mentioned the term gas co-op. I ended up with a few questions about what that meant.
If you live in an urban setting you likely get gas from a private utility such as ATCO. They supply the infrastructure and you usually have a choice on the who you purchase the gas from as a marketer. The marketer uses ATCO to get their gas to your meter.
In rural Alberta we have some private utilities such as Apex and ATCO but a large portion of the province is fed by co-ops. Back in the 60's when gas companies were hooking the larger towns and cities they did not view the rural areas as feasible. Too much infrastructure per user.
Rural residents that wanted gas banded together to form cooperatives and plowed in their own systems. The one I belong to and am a Director of, Chain Lakes Gas Co-op, has been going since 1974 and allowed over 2000 users the ability to switch from coal, oil and propane to more convenient and lower carbon emitting natural gas.
As more co-ops sprang up they formed a central body called the Federation of Alberta Gas Co-ops Ltd. This provides a central resource to maintain consistency in construction, safety, materials purchasing, etc. To have greater gas purchasing power the Federation formed Gas Alberta Inc. to be a customer owned trading entity. By combining the buying power of 75 co-ops they have better purchasing power than each co-op going separately.
This answers the question newcomers to a co-op have of "Why cant I chose my supplier?". Because you are part owner of the supplier.
Being a co-op means the shareholders are the customers. The co-op operates at a price point to break even on operating and maintenance costs. They do not exist to make a profit margin for investors. Because they are not profit driven means the co-ops generally are able to operate more economically for their customers.
When you consider the transition from coal, fuel oil, and wood to gas required the better part of the last 60+years to develop the 120,000+km of network, it gives some indication of the time and effort required for the next energy transition.
Full history on the Federation can be found here https://lnkd.in/g7iwR9Kh
Link to Gas Alberta here https://lnkd.in/gV-ugPte
#naturalgas #energytransition #renewables #canadianenergy
Owner at Bullets Hotshot
1wYes we did! Great project!