3. Resolution No. 2194-2025

City Council · 2026-04-20 · agenda_item

The City of Jacksonville Beach is considering an addendum to its gas services agreement with Florida Gas Utility (FGU). This addendum would allow the City to participate in a 30-year gas pre-pay transaction with Black Belt Energy. The transaction involves purchasing firm quantities of natural gas daily, with pricing based on a market index minus a variable discount. This discount is initially at least $0.50 per dekatherm and will be subject to adjustments every five to ten years. The City is authorized to execute this addendum, which is currently under review by the City Council. If approved, this would involve administrative steps to implement and manage the agreement. This opportunity could benefit contractors and suppliers involved in utility services, energy supply, and financial services related to long-term commodity contracts. Early engagement could provide insight into the specific requirements and timelines as the city finalizes its participation.

term

30 years

initial discount

0.50 /Dth

minimum discount

0.20 /Dth

daily quantity

647 Dths

daily quantity

423 Dths

initial discount

0.60 per dekatherm

minimum discount

0.23 /dth