Some time next month, the City of Long Beach municipal natural gas utility intends to ink a deal with one of three competing suppliers for up to 24 months at rates that will be the lowest in Southern California, according to the muni’s general manager.

Williams, Coral and BP are the three finalists in a bidding process that began with 90 prospective suppliers last May, said Chris Garner, the muni’s general manager. He said the supplies would begin around Nov. 1, totaling from 6-7 Bcf annually, which represents two-thirds of the city’s annual load.

Long Beach is looking for a deal with three basic criteria: a price ceiling indexed to the Southwest basin, plus a fixed rate for the transportation to the California-Arizona border, and no more than 24 months.

“With these criteria, we think we will beat the SoCalGas price over time,” Garner said. “It would be the lowest price in Southern California once again.”

Long Beach has a muni for natural gas, water and for the purchase of the city facilities’ electricity needs. In 1999, the city made an attempt to take over the Edison distribution system within the city and make it part of the existing municipal utility department, with a long-term contractor operating the power system.

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