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District Heat Retooling Means Big Decisions Ahead For BPU

Users of the Jamestown Board of Public Utilities’ district heating system have three options to consider as the BPU considers options to replace the system – do nothing, pay a lot individually for new heat sources or pay less through a sizable rate increase to retool the district heating system.

In our view, the best option is the third one. No one, particularly in this business environment, wants to see rates for heating increase. It’s a big nut to crack, especially with inflation and state-driven cost increases squeezing the bottom line.

But doing nothing is not a real option. Eventually the district heating system will break down. These systems are designed with a useful life of about 25 years. The BPU’s district heating system was state of the art when it was installed 40 years ago. The piping is old. The heat exchangers are old. And the fuel source is one the state wants to phase out.

Some district heat users can afford to install their own heat sources. Others are going to struggle with the cost. It would seem that a collective solution would make sense.

That brings us to the third option – retooling the district heat system. It will mean higher rates for district heat, but the BPU has come up with an interesting solution to the fuel source issue with either geothermal wells or running district heat lines to the BPU’s Wastewater Treatment Plant in Kennedy and back. Hot water generated at the wastewater plant can power the district heating system – and allow the BPU to add users along the route.

This is a key time, in our opinion. BPU officials have to find out what the community wants to do. Retooling the system doesn’t make economic sense for either the BPU or the buildings that would fall along the new district heating loop if there isn’t enough interest. The BPU will also need the community’s support with state officials as it goes out looking for outside funding to help bring the cost for a new system down if the community decides a new system is the best way to go.

We are on the precipice of an important community decision. The first choice – are we in or out on district heating?

The BPU has shown their support by bringing this to the forefront now, which will give all involved plenty of time to make an informed decision. Now, everyone needs to work with the BPU to come to an equitable solution.

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