City of Senatobia

Member Profiles: City of Senatobia

Thirty miles south of Memphis, Tennessee on I -55, one rolls into the City of Senatobia, Mississippi. A bedroom community of Memphis, it dates back to the 1800’s, when the town was founded about five miles away from present-day Senatobia. After getting burned down in the War Between the States, the town eventually moved to its current location to meet the railroad. It became a center of manufacturing, which drew Southern United Gas to build a gas system there in 1949. In 1967, this was bought by the city.

For the past 66 years, Senatobia has been home to Public Works Director Reed Morris, who has seen the city grow from 1500 to nearly 7000 people. Of this current population, 1700 are customers of the gas system. They get their gas from the Tennessee Pipeline and, as of 1990, Trunkline Gas. According to Reed, “Two suppliers have meant we have been better off.” In addition to getting gas from them, Senatobia also has 135,000 Mbtu of storage capacity with the Tennessee Pipeline. “So,” Reed continues, “We have a regulator that regulates what comes in off Trunkline, so when we don’t need the gas from Tennessee, it goes into storage.”

There are several industries that contribute to the load for the Senatobia gas system. Among these are Aluminum Extrusions, Inc., a specialty aluminum extruder; Chromcraft Corp., maker of dinette sets; R.R. Donnelley & Sons, a specialty printer; a BMW parts distribution facility; Carlisle Syntec Inc., which manufactures roofing material; and a couple of small 30-40 people industries that are growing. The addition of a new industrial park and a second Interstate-55 interchange promises to provide even more.

The city’s gas system has 38 miles of pipe. Plans are in place to run an 8-inch 360 pounds PSI line around town, to reach one of the three subdivisions currently being built.

Senatobia’s Utility department has 12 employees, four of whom work on the gas system. Since gas costs have gone up from the two dollar range of the 1990’s, Senatobia’s gas division has calculated what it costs to run the system. Now,” whatever comes in, we add a profit factor based on the customer class (industrial, commercial or residential) to the price for our budget needs. By using this pricing method, we’re able to pass along the actual cost of gas to the consumer, and we simply add our profit to it.”

Senatobia have a company- Utility Management in Jackson, MS – that does the system’s purchasing of gas. In May, they were able to buy gas on both suppliers through September at six dollars. As Reed Morris says, about pre-purchasing,” Sometimes you make a mistake, sometimes you get good. “

The City is run by an elected mayor and five aldermen, who generally let the system alone in day-to-day operations. Reed stated that “they don’t get into nuts and bolts. We keep the board of alderman informed, and the mayor trusts the gas system’s expertise.”

Morris feels that APGA is going in right direction with our Congressional lobbying, but should consider working to convince some of the states to follow the federal government’s OQ regulations. “We get so many regulations. With the Feds and the state asking for different things, it can get needlessly confusing. Trying to meet two different sets of OQ standards is also very expensive for a small town!”

After Morris retired on June 30, 2006, Linwood Maples, an 18-year veteran of the utility, took over his job. If you would like more information on the City of Senatobia’s gas operation, contact (662) 562-8288.

Originally in July 24, 2006 Public Gas News

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