Natural gas prepayments provide new, economical tool for municipalities and universities
Just when you thought all the gas supply pricing notions had bubbled to the surface - comes the City of Clarksville, Tennessee with the next innovation. Clarksville owns and operates a local distribution company serving residential, commercial, and industrial customers. It also serves Fort Campbell, Kentucky, a large U.S. Army facility. The City closed a unique gas supply transaction in December 1994 which will fix a portion of its gas utility`s natural gas prices for ten years. The new wrinkle is the way the gas was purchased. Clarksville prepaid Louis Dreyfus Energy Corporation $22 million in return for 3,900 MMBTU`s per day for ten years, delivered to Tennessee Gas Pipeline Company in Louisiana. SUTRO & Company`s municipal finance division in Denver financed the City`s prepayment with tax-exempt securities. SUTRO, a division of John Hancock Freedom Securities, developed the successful tax strategy, prepaid bid documents, and financing structure during the last several years. The natural gas business expertise was provided by KTM, INC. a Boulder, Colorado natural gas consulting firm.
- OSTI ID:
- 269653
- Report Number(s):
- CONF-960213-; TRN: 96:002620-0008
- Resource Relation:
- Conference: 9. annual utility business operations in the 90`s, Stanford, CA (United States), 21-23 Feb 1996; Other Information: PBD: 1996; Related Information: Is Part Of 9th Annual college/university conference; PB: 271 p.
- Country of Publication:
- United States
- Language:
- English
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