Hamilton, Ohio - The Hamilton Department of Public Utilities is excited to announce that it has signed a letter of intent with its first contract compressed natural gas (CNG) customer, for CNG service at the recently opened, City-owned Public CNG Fueling Station, located a 2220 S. Erie Blvd., in Hamilton. The City of Hamilton, a recognized leader in Ohio in utilizing alternative fueled vehicles, completed the construction of the area's first public CNG fueling station, in late 2014.
The City has a number of CNG vehicles in its current fleet of vehicles, and is planning to purchase or convert a number of additional CNG vehicles in the near future. However, in order to make the CNG fueling station truly viable, the City needed to bring in additional outside CNG vehicles, either through securing fleet operators or other private vehicles.
The City considered its current contracts and determined that Rumpke, Inc., would be an excellent target for contracting with the City on CNG purchases. The City has contracted with Rumpke for over 20 years for its residential and commercial trash collection. Additionally, Rumpke has a fleet of trucks, many of which are designed to operate on CNG. The City opened negotiations with Rumpke, and both sides saw the mutual advantage of an agreement.
Based upon the negotiations, Rumpke will receive a discounted rate on its purchase of CNG at the Hamilton fueling station. This discount equals 10% to 25% off the standard CNG price, which is currently $1.99 per GGE (Gasoline Gallon Equivalent), based upon the volume of CNG that Rumpke uses in a month. There is also a minimum, "take-or-pay" requirement, wherein Rumpke is required to purchase a minimum amount or will pay a minimum charge per month. Under the terms of the proposed agreement, Rumpke will be required to use a minimum of over 2,600 GGE per month. Additionally, the proposed agreement with Rumpke is for one year, with the option of the parties to extend beyond.
Doug Childs, Public Utilities Director, stated, "We are excited to partner with Rumpke on this CNG venture. Hamilton and Rumpke are strong proponents of the economic and environmental benefits of natural gas and its use as an alternative fuel source in vehicles. We are continuing to seek out other opportunities for additional sales of CNG to commercial fleets and individual vehicles."
The formal Agreement between the City and Rumpke, which will require authorizing legislation, will be considered by Hamilton City Council at its regular meeting, scheduled for May 13, 2015.
The station, which is now open to the public, is located adjacent to the Hamilton Municipal Garage property, on State Route 4 (S. Erie Blvd.). The fueling station was jointly funded by the City and a Congestion Mitigation and Air Quality (CMAQ) grant, awarded to the City by the Ohio-Kentucky-Indiana (OKI) Regional Council of Governments.
The City of Hamilton owns and operates all four of the primary utilities in the City, including electric (generation, transmission and distribution), natural gas (distribution), water (treatment and distribution) and water reclamation (collection and treatment) systems. The City continues to be one of the lowest cost providers of all utility services in the Region and the State.