A new contract will generate savings on natural gas for Beaches Energy customers. The Jacksonville Beach City Council members recently approved a one-year contract with Florida Natural Gas. The city held a previous contract with TECO Peoples Gas for more than 10 years.
“This year, we saw on opportunity to review the three contracts we currently have with TECO. We found out pretty quickly that we’d outgrown our requirement for natural gas supply. TECO was no longer the lowest cost provider for us,” said Allen Putnam, director of Beaches Energy Services.
“We entered into a consulting agreement with TECO to bid out our natural gas supply. They came back at seven suppliers responded to the RFP. We actually came back with a saving of 17 percent or $146,000 on our natural gas supply. It’s big news for our customers.”
Beaches Energy Services currently has three contracts with TECO Peoples Gas. The new contract with Florida Natural Gas replaces the natural gas supply contract. “TECO will continue to manage our system and do the day-to-day maintenance and compliance,” said Putnam
The new contract with Florida Natural Gas went into effect on June 1 for a one-year term. Councilman Keith Doherty questioned whether Florida Natural Gas will maintain the same function regarding the infrastructure. “Is that a private contract between them and TECO?” asked Doherty. “This is just the cost of bulk gas then?”
Putnam said the contract allows only the city to purchase natural gas supply at a lower rate from the interstate pipeline. TECO will continue to maintain the system from the Gate Station to every service destination on the island.
