Dillingham, AK – April 10, 2014 – In an innovative move to contain local fuel prices and defray membership operational costs, Nushagak Electric & Telephone Cooperative (NETC) signed a fuel storage agreement with Vitus Energy LLC. Vitus will have rights to store fuel in NETC’s tanks that are currently underutilized. NETC General Manager Mike Megli says “The arrangement between NETC and Vitus can help with additional revenue for our core business of providing electricity to our membership.

This model will utilize our excess storage capacity and assist in offsetting the expense associated with operating a fuel storage facility. The Board and Management believe this will enhance the Cooperative as well as increase competition to benefit of our membership.”

Any related expenses incurred by NETC will be recovered though fees and charges negotiated in the contract. The Cooperative expects material annual income during the term of the lease. Vitus CEO Mark Smith commented “Vitus continues to invest with customers that are willing to seek out creative solutions to control fuel prices. This agreement will provide immediate benefits to the community by lowering home heating fuel costs between the supplier and the customer. We expect to have a distribution plan in place before fall freeze up.” NETC and Vitus expect facility modifications to be completed prior to final barge resupply in October.