MEMORANDUMFirm Capacity Agreement • July 13th, 2022
Attached hereto for your consideration is a Firm Capacity Agreement (Agreement) with Florida Gas Transmission Company, LLC (FGT) for the daily purchase of 1,000 MMBtus of FGT capacity to transport natural gas. Lakeland Electric’s staff has been purchasing delivered Natural Gas to cover periods when its capacity is short in order to address peak load requirements. Specifically, delivered Natural Gas uses another shipper's pipeline capacity sold daily to transport Natural Gas to a utility's plant. However, due to nationwide supply chain issues with utility providers’ coal units fuel supply and retirements, other shippers now have less daily capacity to sell on the aftermarket during critical consumer usage times such as summer and winter. In addition, the delivery transportation price during peek months now exceeds the cost of paying for additional firm capacity.
