Profile: RGC Resources Inc (RGCO.OQ)
13 Mar 2014
RGC Resources, Inc. (Resources), incorporated on July 31, 1998, is a holding company for Roanoke Gas Company (Roanoke Gas) and its subsidiaries include Roanoke Gas, Diversified Energy Company and RGC Ventures of Virginia, Inc. The principal service of Roanoke Gas is the distribution and sale of natural gas to residential, commercial and industrial customers within its service territory in Roanoke, Virginia and the surrounding localities. Roanoke Gas also provides certain non-regulated services which account for most of the non-gas utility revenue of Resources. During the fiscal year ended September 30, 2011 (fiscal 2011), the Company also formed The Utility Consultants under RGC Ventures of Virginia, Inc. to provide utility and regulatory consulting services to other utilities.
Roanoke Gas maintains an integrated natural gas distribution system. Natural gas is purchased from suppliers and distributed to residential, commercial and industrial users through underground mains and service lines. During fiscal 2011, 91.1% of the Company’s 57,684 natural gas customers were residential users accounting for 41% of total sales volumes and 57% of gross revenue; 8.8% were commercial users accounting for 28% of total sales volumes and 33% of gross revenue, and 0.1% were industrial and transportation customers accounting for 31% of total sales volumes and only 6% of gross revenue. Transportation customers are those natural gas users that purchase their natural gas requirements directly from a supplier other than the Company and utilize Roanoke Gas’ natural gas distribution system for delivery to their operations. Roanoke Gas’ regulated natural gas distribution business accounted for approximately 98% of Resources total revenues during fiscal 2011.
The Company’s residential and commercial sales are seasonal and temperature-sensitive as the majority of the gas sold by Resources is used for heating. Roanoke Gas is served by multiple interstate pipelines, including those operated by Columbia Gas Transmission Corporation and Columbia Gulf Transmission Corporation (together Columbia), and East Tennessee Natural Gas Company (East Tennessee), Tennessee Gas Pipeline, Midwestern Gas Transmission and Saltville Gas Storage Company, LLC to transport natural gas from the production and storage fields to Roanoke Gas’ distribution system. Roanoke Gas is directly served by two pipelines, Columbia and East Tennessee. The Company uses multi-year contracts to meet its natural gas supply needs. The Company contracts with ConocoPhillips to be the asset manager and primary supplier for Roanoke Gas. The Company has approximately 1,045 miles of transmission and distribution pipeline. Roanoke Gas owns and operates eight metering stations through, which it measures and regulates the gas being delivered by its suppliers. These stations are located at various points throughout the Company’s distribution system. Roanoke Gas also owns a liquefied natural gas storage facility located in Botetourt County that has the capacity to store up to 220,000 DTH of natural gas.
RGC Resources Inc
519 Kimball Avenue, N.E
ROANOKE VA 24016