Co-op Signs First Ankeny Customer
Around Town/The Des Moines Register — Juli Probasco-Sowers
Wednesday, October 24, 2001.
Consumers Energy could gain 2,000 new customers in Ankeny during
the next five to 10 years.
Ankeny, IA — Consumers Energy officials have signed
their first Ankeny customer under a new natural gas franchise that
puts them in direct competition with Mid-American Energy.
The Marshalltown-based utility cooperative has been laying line
in three developments on the west side of Ankeny since the city
council approved its franchise in August. The move makes Ankeny
the first community in Iowa to have natural gas companies competing
for residential customers, said Bob Haug, executive director of
the Iowa Association of Municipal Utilities.
He doubts similar competition will take place in many other Iowa
communities. "From a practical matter, this probably won't happen
very often," Haug said. There's a high cost to providing new lines
and equipment to bring gas into cities for residential service,
he noted.
What makes sense for Consumers Energy is the proximity to a metropolitan
area, where more bulk gas lines are located, Haug said. That makes
it more cost effective for a company to add equipment and lines
for delivery to customers.
Consumers Energy currently serves about 5,000 customers in Polk,
Story, Jasper, Tama and Marshall Counties. Mark Hanson, the company's
natural gas and energy services manager, said there are 50 natural
gas customers, with the remainder receiving electrical services.
Consumers Energy officials are counting on potential customers
being drawn to a smaller, customer-owned company with a proven track
record and personal service.
Leo Beebout, who is building a house in the Westwinds development,
was the first Ankeny customer to sign up with Consumers Energy.
Beebout said he was attracted to Consumers Energy because of his
experience with agricultural cooperatives.
"I've had excellent experience with cooperatives. These people
came out and talked to me face-to-face early on," he said.
Consumers Energy could gain 2,000 new customers in Ankeny during
the next five to 10 years, said Hanson.
Brian Heithoff, the company's chief executive officer, said moving
into Ankeny makes sense because the company has been providing electrical
services in some of the outlying areas not far from Ankeny for as
long as 60 years.
Since the franchise approval the company has already laid line,
or is in the process of doing so, in Coves West, Westwinds and Water
Crest developments.
MidAmerican Energy is laying line in the same developments, said
Kevin Waetke, spokesman for MidAmerican Energy. MidAmerican is laying
its line to maintain the company's system continuity and ability
to provide service in the future growth areas.
As Consumers Energy puts lines in, there will be an increased capability
for the company to go other places at much less cost, Heithoff said.
He declined to disclose the company's initial expansion cost.
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