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ProLiance to Serve Tennessee Valley Supply Group
Indiana-based ProLiance Energy has been awarded a two-and-a-half-year portfolio management contract by the Tennessee Valley Supply Group (TVSG), of municipal energy buyers.
ProLiance, an energy marketing firm, will sell approximately 15 Bcf of gas annually and provide commodity procurement, transportation and storage services for the five Alabama municipal utilities that make up TVSG.
The multi-year deal will produce over $200 million in revenues for ProLiance Energy over the life of the contract. The utilities --- which serve more than 50,000 customers --- include Huntsville Utilities Gas System, Decatur Utilities, Sheffield Utilities, Cherokee Water Works & Gas Board, and the City of Russellville. The total value of the contract is dependent on the ongoing price of natural gas.
Including the TVSG contract, ProLiance will manage over 50 Bcf of pipeline transportation on Midcoast Interstate Transmission Pipeline, Tennessee Gas Pipeline and Southern Natural Gas pipelines. The company now lays claim to the title of the "largest U.S. natural gas supplier to municipals and one of the largest portfolio managers for natural gas utilities."
"We awarded ProLiance Energy this contract because this marketer is innovative in its service offerings to the municipal buying group," said John DeMent, manager of gas supply for Huntsville Utilities Gas System. He added, "We have a high confidence level with ProLiance, since it has been managing the gas portfolio for Citizens Gas & Coke Utility, the nation's fourth largest municipal with 256,000 customers, since April 1996."
"Our strength is developing and implementing innovative, cost-effective gas management and portfolio strategies," said ProLiance President John Talley. In addition to providing portfolio management to eleven municipal customers located in three states, the company also supplies other municipal customers with natural gas procurement and transportation services. The firm serves customers in fourteen states and Ontario. ProLiance Energy is a joint venture by affiliates of Citizens Gas & Coke Utility, and Vectren Corp.
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