Aquila Energy has won a long-term, $24.3 million contract tosupply gas to to Nebraska municipals under a pre-paid contractdriven by the current low interest rates. Aquila will supply14,419,850 MMBtu over 10 years to Energy America, which isaffiliated with the Nebraska Municipal Power Pool, the MunicipalEnergy Agency of Nebraska and the Nebraska Public Gas Agency.

Energy America, based in Lincoln, NB, is prepaying the entirecontract. It has issued tax-free bonds while interest rates are lowto provide its member customers with lower cost energy over thelength of the contract. It will resell gas obtained from Aquila tothe municipal organizations that make up the Nebraska Public GasAgency. Aquila said it is making this type of financial arrangementavailable to its customers so they can take advantage of currentlow interest rates. Meanwhile, it is able to offer such long-termcontracts due to established risk management and tradingactivities.

Aquila, a subsidiary of UtiliCorp United, recently was awarded a10-year contract by the Municipal Gas Authority of Georgia (MGAG)for $125 million. Under the terms of this contract Aquila issupplying MGAG with 20,000 MMBtu/d. As Energy America is doing,MGAG prepaid the entire contract.

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