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NO Mountain Valley Pipeline

Roanoke Gas should exit contract with Mountain Valley Pipeline.

Roanoke Gas Company (RGC) has the opportunity this June to do the right thing for its 62,000 customers by exiting its contract with Mountain Valley Pipeline (MVP) by June 30th. RGC intends to pass the cost of its $112 million contract for capacity with MVP onto the ratepayers of the 55,000 households, schools, businesses, hospitals, places of worship and other facilities which it serves.

Many of these households and schools are within low-income communities and communities of color that have been disproportionately impacted by the current COVID19 pandemic.

Additionally, Roanoke area residents and families are already supplied by 2 gas pipelines,  the Columbia Gas and East Tennessee pipelines. The investment in MVP is intended to expand RGC’s service area and is not needed to supply Roanoke.

Therefore, RGC plans to push the cost of this destructive, unnecessary pipeline unjustly onto its Roanoke customers so that the company and its shareholders can make a profit.

Why is a new gas pipeline not needed?

  • Roanoke Gas’s contract for capacity with Mountain Valley Pipeline is unwise, as there is a glut of gas on the market, and a potential lack of growth in the industrial/commercial sector.
  • The Department of Energy has predicted lower gas consumption for the remainder of 2020
  • If RGC does not exit MVP it will owe the MVP $112 million over 20 years regardless of how much of the reserved capacity is actually needed and RGC expects to pass this on to customers.
  • If RGC left the contract, the company could still purchase service on the MVP “as needed” because there is so much available capacity.
  • There is sufficient supply to meet our region’s needs with existing gas infrastructure and current contracts with the Columbia and East Tennessee pipelines.
  • If more capacity is needed, it would still be cheaper to purchase gas from existing suppliers that get their gas from the same area as MVP. East Tennessee would transport gas seven times cheaper than MVP and Colombia Gas would be 6 times cheaper.

Why is MVP a bad deal for Roanoke and harmful to Southwest Virginia communities?

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