Indiana-based ProLiance Energy has been awarded atwo-and-a-half-year portfolio management contract by the TennesseeValley Supply Group (TVSG), of municipal energy buyers.

ProLiance, an energy marketing firm, will sell approximately 15Bcf of gas annually and provide commodity procurement,transportation and storage services for the five Alabama municipalutilities that make up TVSG.

The multi-year deal will produce over $200 million in revenuesfor ProLiance Energy over the life of the contract. The utilities— which serve more than 50,000 customers — include HuntsvilleUtilities 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 priceof natural gas.

Including the TVSG contract, ProLiance will manage over 50 Bcfof pipeline transportation on Midcoast Interstate TransmissionPipeline, Tennessee Gas Pipeline and Southern Natural Gaspipelines. The company now lays claim to the title of the “largestU.S. natural gas supplier to municipals and one of the largestportfolio managers for natural gas utilities.”

“We awarded ProLiance Energy this contract because this marketeris innovative in its service offerings to the municipal buyinggroup,” said John DeMent, manager of gas supply for HuntsvilleUtilities Gas System. He added, “We have a high confidence levelwith ProLiance, since it has been managing the gas portfolio forCitizens Gas & Coke Utility, the nation’s fourth largestmunicipal with 256,000 customers, since April 1996.”

“Our strength is developing and implementing innovative,cost-effective gas management and portfolio strategies,” saidProLiance President John Talley. In addition to providing portfoliomanagement to eleven municipal customers located in three states,the company also supplies other municipal customers with naturalgas procurement and transportation services. The firm servescustomers in fourteen states and Ontario. ProLiance Energy is ajoint venture by affiliates of Citizens Gas & Coke Utility, andVectren Corp.

Alex Steis

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