Williams Energy signed a 10-year agreement to supply more than16,000 Dth/d of pre-paid gas to Florida Gas Utility fordistribution to its members, consisting of 15 Florida LDCs.Williams Energy began supplying Florida Gas Utility Dec. 1.Historically, Florida Gas Utility bought gas using short-term (lessthan one month) and medium-term (up to three years) contracts. “Wechose Williams because of its competitive price and most favorablecontract terms,” said Katrina Vaughn, general manager of FloridaGas Utility.

Tom Coleman, senior account director for Williams EnergyMarketing and Trading group, said the agreement with Florida GasUtility opens the door to Williams in the southeastern part of theUnited States. “We plan to show potential customers in thesoutheastern part of the United States how we can offer themcreative ways to package energy, which will offer them long-termcost savings.”

Participants in Florida Gas Utility’s pre-paid supplytransaction include the cities of Blountstown, Chipley, Fort Meade,Homestead, Jay, Lake City, Lake Worth, Lakeland, Marianna, Starke,Vero Beach and Williston. Other members are Kissimmee UtilityAuthority, Fort Pierce Utilities Authority and Florida MunicipalPower Agency. Of its members, seven use gas for electricgeneration, eight are municipal gas distributors and one has bothelectric generation and provides gas distribution services.

In 1989, five cities joined to form Florida Gas Utility to takeadvantage of opportunities created by open access to the pipelineproviding transportation services in Florida. The primary purposeof Florida Gas Utility is to provide low cost gas supply andreliable transportation to its members while minimizingadministrative costs. Florida Gas Utility currently consist of 16member cities and is headquartered in Gainesville, FL.

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