The Long Beach, CA, municipal gas utility’s 30-year, $900 million natural gas pre-pay supply contract with Merrill Lynch Commodities Inc. closes Thursday, drawing an “AA-” rating for its city finance authority, which marketed two series of revenue bonds to support the deal. Up to 90% of the muni’s long-term supply needs will be satisfied under this deal, the city said. Chris Garner, general manager of the Long Beach Utility Department, received authorization from the city council in August to proceed with the pre-pay deal (see Daily GPI, Aug. 27). With more than 400,000 residents about 25 miles southeast of Los Angeles, the port city has an annual natural gas load of 12 Bcf. Supplies in the pre-pay deal could come from wherever Merrill Lynch can get them and guarantee they can get into the Southern California Gas Co. transmission system, to which Long Beach’s distribution system is connected, Garner said.

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