QUALIFICATIONS AND EXPERIENCE

MANAGEMENT STUDIES AND REPORTS

Heath and Associates, Inc., has successfully served the natural gas industry since 1959. We have conducted a variety of studies that address the operation and management of gas utilities. The majority of the studies can be categorized as expansion, system feasibility, rate, gas supply, distribution flow analysis, or cast iron replacement reports.

We have performed many feasibility reports for significant expansions of existing gas distribution systems as well as for new gas distribution system initiation. In the recent past, we have performed detailed market assessments and feasibility analyses for the municipal systems of the City of Shelby, the City of Kings Mountain, the City of Monroe, the City of Lexington, the City of Fountain Inn, and the Jefferson Cocke County Utility District, Newport, Tennessee. 

In these studies, project areas are identified and specific economic analyses computed. Heath and Associates ascertained the market potential of each project area via onsite surveys and developed forecasts for customer connections and typical usage by customer classification. We have extensive experience conversing and negotiating with industrial customers to identify potential loads and price sensitivity.

Construction conditions and cost estimates are a critical component of the economic feasibility analysis and are developed by our professional engineers who have many years of natural gas construction experience. Our expansion/feasibility reports are often used by our clients as a primary component of information packages used to secure financing.

Heath and Associates has helped our clients to construct many of the projects upon which the feasibility analysis was provided. Our record of accurately estimating costs and forecasting customer connections and loads is very good and we invite you to confirm our performance with our clientele.

We have performed feasibility analyses for investor owned gas companies and entities desiring to establish new gas systems. In recent years, we have performed feasibility analyses for Carolina Power and Light, Frontier Utilities of North Carolina, Inc., Maine DRC Development Council, Northeast NC Regional Economic Development Partnership, TAZGAP, Inc. (Tazwell, Tennessee), and the City of Homestead, Florida, to establish new natural gas distribution systems.

Heath and Associates assisted Carolina Power and Light in their application to obtain bond monies for their APEC pipeline project.  This project involves the construction of 592 miles of 6"-12" transmission pipelines and 244 miles of distribution pipeline that will bring gas service to 14 unserved counties in Eastern North Carolina.  The estimated project cost for the Eastern North Carolina project exceeded $185,000,000.

Heath and Associates prepared a market study and feasibility report for Frontier Utilities of North Carolina to establish a natural gas transmission and distribution system in Wilkes, Yadkin, Surrey, and Watauga Counties. The proposed system would involve capital expenditures of more than $50,000,000 and establish a fifth investor owned gas company in North Carolina. Heath and Associates delivered the report to the North Carolina Utilities Commission and assisted Frontier Utilities in securing a certificate of public convenience (franchise) to serve this four county area.

Heath and Associates is constantly monitoring gas supply costs and regulatory rulings that affect our client's gas supply strategies and rates. Heath and Associates has conducted twenty cost of service rate studies over the past few years. Within the rate studies, Heath and Associates develops a financial model to evaluate changing gas prices, number of customers, consumption patterns, demand charges, and weather sensitivity to determine the impact on the client's rates and net operating revenues. Our history of accurately setting rates and estimating net operating revenues result in many of our clients using Heath and Associates exclusively for their rate study needs.

Heath and Associates aids our clients in developing gas supply strategies. Gas supply and load forecasting studies are developed from a detailed review of the system operating statistics and the correlation of load requirements to climatological data. The load forecasting statistics developed enable clients to accurately manage their pipeline contracts and peak shaving requirements. Accurate load forecasting statistics are also utilized in daily nominating, seasonal forecasting, and budgeting.

Heath and Associates provides their clients technical operating reports that enable management to optimize their operations or troubleshoot system deficiencies. Cast iron replacement/maintenance plans and system distribution flow studies are examples of technical operating reports produced by Heath and Associates. Cast Iron replacement/maintenance plans assess and evaluate the condition of cast iron systems and develop a plan to maintain or replace these pipeline systems. Safety, regulatory compliance, and economics are integral parts of cast iron system studies. System distribution flow studies model a utility's flow rates and pressures to evaluate pipeline replacements, upgrades, or expansions. Heath and Associate's experienced staff can streamline the consulting time involved in system distribution flow modeling quickly to identify problem areas and generate solutions.

Heath and Associates serves a client base of 20 - 30 gas systems in the Southeast. Heath and Associates is on retainer with eight municipal systems in North Carolina, South Carolina, and Tennessee. The majority of our clientele use Heath and Associates exclusively for their natural gas consulting needs.

Heath and Associates assists our clientele in the operation of their system as well as the preparation of system design and construction management for special projects. Heath and Associates has prepared operations and maintenance plans (required by the Federal Department of Transportation) for eighteen gas systems in the recent past.  Heath and Associates also assists clients with Operator Qualification and Integrity Management programs and services.

Following is a list of management related studies that Heath and Associates has conducted in recent years. We invite potential clients to contact any of our clients and inquire as to our qualifications and performance.

MANAGEMENT RELATED STUDIES AND REPORTS

CLIENT	STUDY	YEAR
City of Shelby, North Carolina	Rate and Load Study Update	2006
City of Charlottesville, Virginia	Cost of Service Rate Study	2006
Progress Energy, Hines, Florida	Facilities Planning Study	2006
Jefferson Cocke County Utility District, Newport, Tennessee	Cost of Service Rate Study	2006
City of Bessemer City, North Carolina	Cost of Service Rate Study	2005
Progress Energy, North Carolina	Public Awareness Plan	2005
City of Union, South Carolina	Load Forecasting/Gas Supply Study	2005
City of Union, South Carolina	RFP to Sell Propane Air Facility	2005
North Carolina Electric Membership Corporation	Evaluation of Gas Supply Options	2004
Enerdyne Power Systems	Cost Estimate/Feasibility Analysis	2003
City of Lexington	Natural Gas Supply Study	2003
City of Elizabethtown, KY	Cost of Service Rate Study	2003
Richmond Department of Public Utilities, VA	Natural Gas Supply Study	2003
City of Shelby, NC	Natural Gas Marketing Plan	2003
Jefferson Cocke County Utility District Newport, TN	Capital Spending Plan	2002
City of Monroe	Transmission Pipeline/New Supplier Study	2002
Richmond Department of Public Utilities, VA	Loss and Unaccounted for Study	2002
City of Fountain Inn, SC	Cost of Service Rate Study	2001
Maine DRC Development Council Ellsworth, ME	Gas System Feasibility Study	2001
Eastern North Carolina Natural Gas	Assist with Development of New Gas System	2001
H-P Resources, Inc	Gas System Feasibility Study Delaware/Maryland	2000
City of Union, SC	Distribution System Flow Analysis	2000
City of Gaffney, SC	Potential Purchase of Investor Owned Gas System	2000
City of Kings Mountain, NC	Cost of Service Rate Study	1999
City of Fountain Inn, SC	Distribution System Flow Analysis	1999
Carolina Power and Light Co., NC	Feasibility/Bond Application Study	1999
Somerset Gas Service, KY	Cost of Service Rate Study	1999
City of Kings Mountain, NC	Expansion Planning Study	1999
City of Monroe, NC	Load Forecasting/Gas Supply Study	1998
City of Olive Branch, MS	Cost of Service Rate Study	1997
City of Olive Branch, MS.	Distribution Flow Study	1997
City of Shelby, NC.	Load Forecasting/Gas Supply Study	1997
Clinton Newberry Natural Gas Authority, SC.	Transmission Flow Study	1997
City of Fountain Inn, SC.	Load Forecasting/Gas Supply Study	1996
Northeastern NC Regional Economic Development Partnership	Gas System Feasibility Study	1996
City of Danville, VA.	Cost-of-Service Rate Study	1995
City of Rocky Mount, NC.	Natural Gas Supply Study	1995
City of Lexington, NC.	Transportation Rate Study	1995
Frontier Utilities of NC.	Market Study And Feasibility Report	1995
City of Danville, VA.	Operation And Replacement Of Cast Iron Distribution System	1994
City of Homestead, FL.	Gas System Feasibility Study	1994

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ENGINEERING DESIGN & CONSTRUCTION MANAGEMENT

Engineering design and specifications can be developed addressing any type of natural gas distribution or transmission facility. Detailed specifications for material standards and installation methods along with contract documents for public bidding can be developed for each project. Our services include design, bidding, permitting, construction management, verification of invoices, and overall project management. Heath and Associates is routinely involved in the design and construction management of over 100 miles of natural gas distribution and transmission pipeline annually.

Following is a representative listing of projects upon which Heath and Associates provided detailed engineering design and construction management services.

ENGINEERING DESIGN AND CONSTRUCTION MANAGEMENT

CLIENT	PROJECT	YEAR
City of Lexington, NC	8.7 miles of 6", 4", and 2" distribution pipeline, 14 directional bores	2006
Clinton Newberry Natural Gas Authority, SC	1.8 miles of 4" distribution pipeline relocation	2006
Laurens Commission of Public Works, SC	.5 miles of 10" transmission pipeline relocation	2006
Enerdyne Power Systems, Charlotte, SC	9 miles of 8" PE pipeline for a landfill gas project. 2 interstate xings, 4 RR xings, 16 directional bores.	2005
Jefferson Cocke County Utility Disctrict, Newport, TN	9 miles of 6" transmission pipeline and 4" & 2" distribution pipeline, 2 directional bores, 2 regulator stns.	2005
Clinton Newberry Natural Gas Authority, SC	10 miles of 6" steel and PE pipelines, 2 regulator stations, 4 directional bores	2005
City of Elizabethtown, KY	City Gate regulating and metering station	2004
City of Shelby, NC	7 miles of 4" and 2" PE pipelines, 1 directional bore	2004
Clinton Newberry Natural Gas Authority, SC	2 miles of 6" and 2" PE pipelines	2004
City of Lexington, NC	8 miles of 4" and 2" PE pipelines, 1 directional bore, and system upgrades	2003
Town of Blacksburg, SC	2.1 miles of 6", 4" and 2" PE pipelines, 1 regulator station and 1 directional bore	2003
Clinton Newberry Natural Gas Authority, SC	1.7 miles of 6" steel pipelines and 1 regulator station	2003
Jefferson Cocke County Utility District, Newport, TN	9.5 miles of 6” Steel, 4” & 2” PE pipelines, 4 directional bores	2003
City of Bessemer City, NC	3 miles of 4” steel pipeline, 3 meter & regulator stations.	2003
Town of Blacksburg, SC	6 miles of 6” & 4” PE pipelines, 4 directional bores, 1 regulator station.	2003
City of Rocky Mount, NC	9 miles of 10” and 6” PE pipelines, directional bore & meter station.	2002
Clinton Newberry Natural Gas Authority, SC	12 miles of 6" high pressure and 2" PE pipeline, 9 directional bores, 2 regulator station, 4 transmission line lowerings	2002
Mirant Corporation and Anderson and Associates, VA	14 miles of 20" transmission pipeline in Danville, VA	2001
Clinton Newberry Natural Gas Authority, SC	Relocation of 3 miles 6" high pressure and 2" PE pipelines, 3 directional bores	2001
City of Shelby, NC	Rebuild Town Border Regulator Station, relocate 2.3 miles distribution pipeline, 2 directional bores	2000
City of Lexington, NC	Relocation of 6700' of distribution pipeline	2000
Laurens Commission of public Works, SC	11 miles of distribution pipeline, 1 creek crossing	1999
City of Kings Mountain, NC	4 miles of distribution pipeline, 1 creek crossing	1999
City of Bessemer City, NC	4 miles of high pressure distribution pipeline	1999
Chester County Natural Gas Authority, SC	11 railroad crossings	1999
Jefferson Cocke County Utility District Newport, TN	7 miles distribution pipeline, 1 reg. station, 1 interstate crossing, 2 directional bores	1999/1998
City of Rocky Mount, NC	12 miles of distribution pipeline	1998
Town of Blacksburg, SC.	5 miles distribution pipeline, 1 regulator station, 2 meter stations., 2  bridge crossings	1997
City of Rocky Mount, NC.	15 miles distribution pipeline, 1 bridge crossing, 1 river  bore	1997
City of Shelby, NC.	17 miles distribution pipeline, 1 regulator station	1997
City of Lexington, NC.	14 miles distribution pipeline, 2 regulator station	1997
City of Fountain Inn, SC.	6 miles distribution pipeline	1996
City of Monroe, NC.	7 miles distribution pipeline, 1 river crossing	1996
Clinton Newberry Natural Gas Authority, SC.	7 miles high pressure distribution pipeline, 1 interstate  crossing	1996
Laurens Commission of Public Works, SC.	18 miles distribution pipeline	1996
City of Lexington, NC.	23 miles distribution pipeline, 3 regulator stations	1996
Jefferson Cocke County Utility District Newport, TN.	18 miles distribution pipeline, 1 regulator station, 1  interstate bore	1995/1996
Laurens Commission of Public Works, SC.	Propane - air plant	1995
SW Virginia Gas Company, VA.	18 miles transmission pipeline, 1 regulator station	1994
City of Shelby, NC.	52 miles distribution pipeline, 2 regulator stations, 4 bridge  crossings	1994
City of Monroe, NC.	19 mi. distribution pipeline, 2 regulator stations	1994
Laurens Commission of Public Works, SC.	37 miles distribution pipeline, 5 regulator stations	1994
City of Shelby, NC.	59 miles distribution pipeline, 6 regulator stations	1993
Unicoi County Utility District, TN.	City gate station, preheater, and bridge crossing	1992

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MEMBERSHIP AFFILIATIONS

    American Public Gas Association
    Kentucky Gas Association
    Southern Gas Association
    Tennessee Gas Association
    American Society of Mechanical Engineers

WHY CHOOSE HEATH AND ASSOCIATES, INC.?

 

	Highly respected consulting firm with over forty-six years of experience exclusively dedicated to the natural gas industry.
	Experienced with natural gas system design, construction, and system operations.
	Constant monitoring of natural gas prices, regulatory actions, and operating concepts within the natural gas industry.
	Experienced, with exemplary record of accurate rate analysis and financial modeling.
	Reputation for independent thinking and unbiased forthright conclusions and recommendations.
	Extensive experience with natural gas system expansion evaluations.
	Outstanding record of accurate projections of customer connections/load forecasts and construction cost estimating for system expansion projects.
	Unparalleled client satisfaction.

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