Company, Utilities Resume Talks Over Synthetic Gas

Piontek said that besides synthetic gas, LCC will be manufacturing industrial gases and is in negotiations with potential major buyers for that output. He also said company-hired economic consultants were projecting that natural gas prices — currently trading around $4.25 per thousand cubic feet — would be in the $7 to $8 range by the time the plant opens in 2013.

"If you can trust these experts, we will be slightly below that," Piontek said.

Utility representatives said earlier that they did not want to get locked into long-term contracts that could force them to buy synthetic natural gas at prices higher than regular gas prices — a cost that is passed on directly to customers' bills.

Piontek also said the company was willing to give $40 million a year to the PSC that could be used for such things as reducing power bills. In addition, Piontek said the plan under development would allow the PSC to force down LCC's price if it was above natural gas prices.

No utility company representatives spoke.