LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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FIRST AMENDMENT TO FLORIDA PUBLIC UTILITIES COMPANY GAS TRANSPORTATION SERVICE AGREEMENT
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RECOMMENDATION:
recommendation
That City Council approve the First Amendment to Florida Public Utilities Company Gas Transportation Service Agreement between the City of Pensacola and Florida Public Utilities (FPU). Further, that City Council authorize the Mayor to take the actions necessary to execute and administer this First Amendment to Florida Public Utilities Company Gas Transportation Service Agreement, consistent with the terms of the agreement and the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
In September 2016, Pensacola Energy entered into an agreement with Chesapeake Utilities Corporation d/b/a Florida Public Utilities (FPU) for the construction of the Pensacola Lateral pipeline and Citygate #3. In 2018, construction was completed and FPU began serving Pensacola Energy with natural gas as a secondary supplier.
The purpose of this Amendment is to provide for a second delivery point for natural gas to reinforce Pensacola Energy’s natural gas distribution system serving the north end of Escambia County. FPU plans to construct a Citygate near Champion Drive and connect to Pensacola Energy’s existing natural gas main. The term of the original agreement will be extended to 25 years beginning with the in-service date of the new delivery point.
PRIOR ACTION:
None.
FUNDING:
Budget: $176,800
Actual: $176,800
FINANCIAL IMPACT:
Gas costs are recovered through the Purchased Gas Adjustment (PGA) component of the gas rate structure.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
12/29/2022
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator
Darryl Singleton, Interim Pensacola Energy Director
ATTACHMENTS:
1) First Amendment To FPU Transportation Service Agreement
PRESENTATION: No end