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 5 (Compressed Natural Gas), Schedule 7 (Cogeneration), and Schedule 9 (Transportation) customers for contract periods not to exceed five years. (Citywide)
DISCUSSION
Similar to all other California natural gas utilities, Long Beach Gas and Oil (LBGO) permits certain customer classifications, primarily LBGO’s largest customers, to contract for their natural gas commodity supplies from third parties. These customers must then enter into Natural Gas Transportation/Service Agreements (Agreements) with LBGO to provide for the transportation of these gas supplies over intrastate pipelines and LBGO’s pipelines to the customer’s facility.
All existing Agreements with such customers, under Gas Rates Schedule 5 (Compressed Natural Gas), Schedule 7 (Cogeneration), and Schedule 9 (Transportation), will expire on July 31, 2012. Therefore, new Agreements must be executed for those customers opting to continue to procure their own natural gas commodity supplies. These Agreement customers currently include: Bloom Energy, Boeing Corporation, California State University at Long Beach, Edgington Oil, St. Mary Medical Center, and THUMS Long Beach.
The new Agreements will outline the terms and conditions under which a transport customer must operate. Transmission rates charged under these Agreements are as stated in the current LBGO Rate Schedules.
The relevant provisions under the Agreement are as follows:
· LBGO agrees to transport Customer-owned gas from the point of receipt into the SoCaGas transmission system to the LBGO distribution system where the gas shall then be transported and delivered to the Customers by LBGO on a daily basis.
· The Customer’s gas volume nominations must be submitted to LBGO in writing at least one business day prior to the ...
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