The nation’s biggest municipal utility, the City of Los AngelesDepartment of Water and Power, has signed 27 of its largestcustomers to discount contracts valued collectively at $1.2 billionover their seven- and 10-year lives. The deals represent about 8%of the departments electricity sales which are projected to be 25GWh this year, according to Randy Howard, LADWP’s manager of thelong-term contracts.

LADWP on Monday celebrated its latest 10-year, 5% discount dealwith the Getty Center art museum and cultural complex as part ofenergy and environmental joint events at the 24-acre, $1 billionhillside campus tucked on a 110 acres in West Los Angeles. The dealis valued at $2 million, according to LADWP.

Last year the large muni utility, which under California’selectricity restructuring is not required at this point to open itsmarkets to retail choice, embarked on an aggressive effort to signits 50 largest customers to long-term deals. Among its 27 deals 23are for 10-year durations, with the others covering seven-yearperiods, said Howard, adding that the department has 14 or 15outstanding offers to some of the other largest customers, and itshould wrap up those deals by June 1.

The deals represent $134 million of locked-in annual revenue forLADWP, Howard said. The customers vary from major universitycampuses, such as the University of Southern California, togovernmental departments, hospitals, large retailers and businessoperations.

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