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Hernando Today

Switching To Gas Is Natural

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By TONY HOLT

Published: June 14, 2008

BROOKSVILLE - Jimmy Annas and his brothers knew the economy wasn't revving, but they still had high expectations for their new restaurant.

The lunch crowd is doing nicely, but dinner has not yet caught on at the Mediterranean Pita Grill.

Money is tight.

It was time for a conversion.

They ditched the propane tanks for natural gas. The hook up was finished Thursday night. Annas is certain he will see an extra $300 in his coffers at the end of each month.

"Oh yeah man," he said assuredly. "It's going to save me a few bucks."

The Annas brothers aren't the only business owners making the switch.

The developers of the Old Towne Centre — the former Brooksville Regional Hospital — insisted on natural gas. Peoples Gas, a subsidiary of TECO Energy, is offering a deal for other nearby businesses now that a new pipeline is running through Brooksville.

Switch to natural gas and the conversion will be free of charge.

While there may be some cost-savings involved in the switch, that doesn't mean the local gas company isn't trying to raise prices. It was announced this week TECO is seeking to increase costs by up to 10 percent next year.

That isn't likely to deter many businesses from jumping at the chance for a less expensive alternative to electric or propane, even if there are signs that cost disparity could shrink.

"It's very cost-effective," said Peoples Gas spokesman Lance Horton. "Anytime natural gas is available, people want to take advantage … It's like low-hanging fruit."

Propane gas rates are unregulated and climbing. Rates for natural gas have to be approved by state regulators. That makes it more predictable and affordable, Horton said.

Dr. Thomas Bracken, owner of Candlelite Fitness near Broad Street, is hopeful Horton is right.

His most recent propane bill was more than $1,700. He used propane to heat his pool and hot tub and quickly accepted Peoples Gas' offer for a free conversion.

"They did the hook ups and ran the gas lines for nothing, zero," Bracken said.

The company also offered to put in sod in the areas where they dug.

The process wasn't painless for Bracken and his neighbors. Workers broke telephone and cable lines and then the water main, he said.

Bracken was promised a monthly cost of about half of what he was paying for propane.

Peoples Gas is not offering a free hook up to every business, only for those relatively close to the main line.

To determine who qualifies for a deal or rebate, the company conducts a feasibility study. Peoples Gas takes into account the distance from the main line, as well as the customer's consumption during a four-year period.

If there is opportunity for the company to make money, a free conversion will be offered, but it is only for a limited time.

Annas also said Peoples Gas is crediting his account for the amount he was required to pay to get out of his propane contract.

"We'll be using enough gas over time, so they're going to make it all back," said Annas.

With propane, he was tired of the regular increases.

"There's no regulation whatsoever," he said. "I was getting a 5 percent increase every week. It was getting crazy."

Joe Giarratana, owner of Papa Joe's Italian Restaurant off Spring Lake Highway, will look into a similar conversion. He has watched his propane cost go from $1.20 per gallon less than a year ago to $2.39 per gallon.

"We use up 1,200 gallons per month, so that adds up pretty fast," he said.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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