DOVER, Del., Aug. 11, 2016 /PRNewswire/ -- Chesapeake
Utilities Corporation (NYSE: CPK) ("Chesapeake Utilities")
announced today that the Federal Energy Regulatory Commission
("FERC") approved on July 21 the
application by Eastern Shore Natural Gas ("ESNG"), Chesapeake
Utilities' interstate natural gas transmission subsidiary, to
expand firm natural gas transportation service to Calpine Energy
Services' Garrison Energy Center in Dover, Delaware. ESNG will transport 45,000
dekatherms per day ("dt/d") of natural gas to service Calpine's 309
MW electric generation plant.
"This project is an example of our ability to provide clean
natural gas thereby generating long-term value for our customers,
investors, employees and our communities," said Michael P. McMasters, Chesapeake Utilities
Corporation President and Chief Executive Officer. "We are proud to
be an integral part of providing access to natural gas, improving
our environment and reducing energy costs."
The transportation service will be provided under ESNG's Off
Peak ≤90 Firm Transportation ("OPT") Rate Schedule. The OPT is a
firm service that was designed to provide customers with an
additional service offering that better matched the specific load
requirements of the customer. Calpine's Garrison Energy Center has
dual fuel capability to help mitigate the effects of any potential
gas interruption.
"This agreement with Calpine exemplifies our continued efforts
to meet the energy needs of the region as demand for economic and
environmentally friendly natural gas increases," said Steve Thompson, President of Eastern Shore
Natural Gas. "Through our pipeline facilities, we're dedicated to
transporting this domestic fuel source safely, reliably, and
responsibly."
ESNG plans to expand its facilities with the installation of 5.4
miles of 16-inch pipeline looping and 3,550 horsepower of new
compression in Delaware. These new
facilities are estimated to cost approximately $38 million. ESNG estimates that it will generate
at least $5.8 million of revenue
annually from providing the OPT service to Calpine. Since Calpine's
electric generation plant initiated operations in the second
quarter of 2015, ESNG has been providing Calpine with a limited mix
of short-term service solutions until the facilities associated
with this project are completed.
Completion of the facilities are anticipated during the first
quarter of 2017.
About Chesapeake Utilities Corporation
Chesapeake
Utilities Corporation is a diversified energy company engaged in
natural gas distribution, transmission, gathering and processing,
and marketing; electricity distribution; propane gas distribution
and wholesale marketing; and other businesses. Information about
Chesapeake Utilities Corporation's businesses is available at
www.chpk.com or through our IR App.
About Eastern Shore Natural Gas Company
Eastern Shore
Natural Gas Company, a subsidiary of Chesapeake Utilities
Corporation, owns and operates a 442-mile interstate pipeline that
transports natural gas from various points in Pennsylvania to customers in Delaware, Maryland and Pennsylvania. For more information, visit
www.esng.com.
Please note that Chesapeake Utilities Corporation is not
affiliated with Chesapeake Energy, an oil and natural gas
exploration company headquartered in Oklahoma City, Oklahoma.
Cautionary Note Regarding Forward-Looking Statements:
Statements in this release that are not historical are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as "expect," "likely," "outlook," "forecast," "would,"
"could," "should," "can," "will," "project," "intend," "plan,"
"goal," "target," "continue," "sustain," "believe," "seek,"
"estimate," "anticipate," "may," "possible," "assume," variations
of such words and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to risks,
uncertainties and assumptions that could cause actual results to
vary materially from those indicated, including the factors
described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and Quarterly Report on Form 10-Q, each of
which is incorporated herein by reference, and in other documents
that we file or furnish with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except
to the extent required by law, the Company does not undertake, and
expressly disclaims, any duty or obligation to update publicly any
forward-looking statement after the date of this release, whether
as a result of new information, future events, changes in
assumptions or otherwise.
For more information,
contact:
Jeffrey Tietbohl
Vice President
Eastern Shore Natural Gas
302.734.6742
jtietbohl@chpk.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/eastern-shore-natural-gas-receives-ferc-approval-to-provide-firm-natural-gas-transportation-service-to-calpines-garrison-energy-center-300312220.html
SOURCE Chesapeake Utilities Corporation