GAS DEAL COULD SAVE CITY MILLIONS COUNCIL APPROVES CONTRACT AIMED AT STABILIZING FUEL COSTS FOR ELECTRICITY GENERATION.Byline: Helen Gao Staff Writer GLENDALE - The City Council ratified rat·i·fy tr.v. rat·i·fied, rat·i·fy·ing, rat·i·fies To approve and give formal sanction to; confirm. See Synonyms at approve. a one-year contract Tuesday with Coral Energy Holding that could potentially save Glendale several million dollars by stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. the price of natural gas used to generate electricity. The contract enables Glendale Water and Power to swap the Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, Border natural gas price index for the less-volatile New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Merchantile Exchange index, which is based on trading in Henry Hub Henry Hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX). It is a point on the natural gas pipeline system in Erath, Louisiana. It is owned by Sabine Pipe Line LLC. , La. SoCal Border and Henry Hub are both natural gas delivery points. If current market conditions hold, the contract is projected to save the city $4.56 million. ``What this, in effect, does is it caps our price in what we will pay for natural gas,'' senior executive analyst Ron Ahlers said. ``Natural gas prices have gone crazy at the California border.'' How much the city will save under the contract will depend largely on future natural gas prices, said Ahlers, who noted that it has only been in the last year or so that SoCal Border prices have topped those at Henry Hub. ``The question is how long will this last. That is a question no one can answer,'' he said. But so far, the city has been benefiting from the swap, which took effect in April. The council had given authorization to city staffers earlier to negotiate and execute such an agreement. During the 12 months covered by the agreement, if the SoCal price is greater than Henry Hub's per-unit price, plus $2, Coral will pay Glendale Water and Power the difference. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , if Henry Hub's unit price, plus $2, is greater than the SoCal price, the city will pay the difference to Coral. Coral so far has paid the city $388,200 for April and $623,797 for May, officials said. Ahlers said the Coral swap secures about a third of the city's natural gas needs, while another third is secured by other contracts. The remaining third has yet to be secured. In a related action, the council also approved $95,000 to hire WTL WTL Windows Template Library WTL Where's the Love (song title) WTL Wireless Transport Layer WTL Way Truth Life WTL Watch The Language WTL Water Tender Ladder (fire appliances/trucks) Trading, a risk management and trading services company from Cypress, Calif., to help the city manage its energy portfolio. Glendale Water and Power currently uses WTL's services through a contract with the Southern California Public Power Authority, which is due to expire in June. |
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