- About Us
- Customer Service
- Gas Supply
- 2017 Contruction Projects
TO OUR SHAREHOLDERS
It seems every company’s annual report letter talks about change. It has become cliché. Despite the obvious desire not to use the word change, I feel compelled to make change the theme of this letter. For us, things have changed and the pace of change has accelerated. By the end of fiscal year 2016 we will own three utilities. Our original core utility, Corning Natural Gas will continue to grow modestly. Leatherstocking Gas will grow robustly and Pike County Light and Power should increase our size and profitability significantly. While 2015 allowed us to solidify our finances, upgrade our core infrastructure and invest for future growth, this year will see the company achieve its vision of becoming a regional gas utility.
2015 was generally a good year. We continued to make progress in improving our core utility operation. Few gas utilities nationally have programs in place as comprehensive as Corning Natural Gas. Our systematic replacement of older pipe, our supply acquisition directly from producing fields and storage reservoirs, our refinancing and our customer service excellence distinguishes us as a first tier gas utility. Leatherstocking Gas has reached critical mass and is now achieving the potential we envisioned three years ago when we created this venture. And while our 2015 financial results were not as desirable as we would like, we do not expect a recurrence of one-time regulatory reconciliations or accelerated leak repair costs. Our 2015 efforts while costly, placed us in a position to grow and prosper in 2016 and beyond.
As everyone knows, today’s energy markets are in turmoil. Oil, propane, electricity, and natural gas prices have declined precipitously. Many gas production and mid-stream companies have reduced capital expenditures. Older power plants around the country have been closing. In this environment, it is important for our company to remain focused and execute our business plan. As a utility holding company we must look beyond current market cycles and focus on managing all aspects of our business well.
Challenges ahead of us include the purchase and management of Pike County and the continual growth of Leatherstocking Gas. Together, Pike and Leatherstocking will give our utility operations in Pennsylvania critical mass. Growing in Pennsylvania provides us with regulatory diversity which is important to our long term success. In fiscal year 2016, Corning Natural Gas our core utility is launching an efficiency initiative, refinancing our debt and implementing a rate increase. These changes will improve our financial performance. The growth of Leatherstocking as well as the Pike County acquisition, compliment the initiatives at Corning Natural Gas and should add further momentum to our progress.
While the changes discussed above have positioned the company well, they have also put pressure on our employees, systems and capabilities. 2016 will be a year of hard work, change and growth, but with these come great rewards.
Michael I. German
President & CEO