TITLE
Recommendation to adopt the resolution authorizing City Manager to negotiate and execute Customer Natural Gas Transportation/Service Agreements between the City of Long Beach and Gas Rate Schedule 7 (Cogeneration), Schedule 8 (Enhanced Oil Recovery), and Schedule 9
(Transportation) customers for contract periods not to exceed two (2) years, which shall continue until a new resolution changes the basis of these agreements. (Citywide)
DISCUSSION
The current Customer Natural Gas Transportation/Service Agreements under Gas Rate
Schedule 7 (Cogeneration), Schedule 8 (Enhanced Oil Recovery), and Schedule 9
(Transportation) wil expire on July 31, 2005. Customers opting to continue procurement of
their own natural gas volumes must enter into and sign new Agreements.
Customers under these Agreements secure their own gas supplies and arrange pipeline
transportation to the California border. The City of Long Beach utilizes capacity on the
Southern California Gas Company s (SoCaIGas) intrastate pipeline system and its own
distribution system to transport these natural gas volumes to the customer s location.
The Customer Natural Gas Transportation/Service Agreement outlines 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 on July 7, 2005 and
Budget Management Officer David Wodynski on July 8, 2005.
TIMING CONSIDERATIONS
City Council action on this item is requested on July 19 , 2005, in order to renew the existing
Natural Gas Transportation/Service Agreements, which are due to expire on July 31 , 2005.
FISCAL IMPACT
All revenues collected under these Agreements wil be deposited in the Gas Fund (EF 301) in
the Long Beach Energy Department (EN). The revenue forecast for these customers is not
projected to change. These Agreements merely facilitate the continuation of standa...
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