Roanoke Gas needs to exit their shipping contract with the MVP and learn how to do math.
Roanoke Gas testified to the SCC they could serve new customers without the MVP, but it was too expensive to use the East Tennessee Pipeline. They showed the SCC the cost to connect with the MVP was $4.2 million and the cost for the 18-mile pipeline addition from East Tennessee was $37.2 million.However they never added in the cost of the shipping reservations.
Thomas Hadwin explains that If you add 40 years of 10,000 dth/d from the MVP and the same from East Tennessee, the total expense to Roanoke Gas is $228.2 million with the MVP and only $68.9 million with East Tennessee. Even with a $26 million penalty, East Tennessee is a far better deal for customers and Roanoke Gas wouldn't need to reserve the full 10,000 dth/d initially with the East Tennessee pipeline.
Roanoke Gas customers should never have their rates raised because Roanoke Gas made a bad deal. They still have until June 30 to exit their contract with the MVP.