TITLE
Recommendation to adopt resolution authorizing City Manager to negotiate and execute Customer Natural Gas Transportation/Service Agreements and future amendments between the City of Long Beach and Gas Rate Schedule 7 (Cogeneration) and Schedule 9 (Transportation) customers for contract periods not to exceed five years, which shall continue until a new resolution changes the basis of these Agreements. (Citywide)
DISCUSSION
All current Customer Natural Gas Transportation/Service Agreements (Agreements) with customers who fall under Gas Rate Schedule 7 (Cogeneration) and Schedule 9 (Transportation) (Customers) will expire on July 31, 2007. Customers opting to continue procurement of their own natural gas volumes must execute new Agreements.
Customers under these Agreements secure their own gas supplies and arrange pipeline transportation of the commodity to the California border. The City of Long Beach utilizes capacity on the Southern California Gas Company's intrastate pipeline system and its own distribution system to transport these natural gas volumes from the California border to the Customer's delivery point.
The Agreements outline the terms and conditions under which a transport customer must operate. Transmission rates charged under this Agreement are as stated in the applicable customer Rate Schedule.
This matter was reviewed by Deputy City Attorney Richard Anthony and Budget and Performance Management Manager David Wodynski on June 25,2007.
TIMING CONSIDERATIONS
City Council action is requested on July 3, 2007 in order to establish new Natural Gas Transportation/Service Agreements, which are due to expire on July 31,2007.
FISCAL IMPACT
All revenues collected under these Agreements will be deposited in the Gas Fund (EF 301) and in the Long Beach Gas and Oil Department (EN). The annual estimated revenue for these customers is projected to be $1.7 million. These Agreements merely facilitate the continuation of standard business operations f...
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