D. Any changes to service fee amount will be treated as a contract amendment

City Council · 2026-04-20 · agenda_item

The City of Jacksonville Beach is considering a new 30-year agreement for natural gas supply with Black Belt Energy. This proposed agreement would provide natural gas at a discounted rate of at least $0.50 per dekatherm below market pricing. The agreement includes a provision for re-pricing between five and ten years after it begins, requiring a minimum discount of $0.20 per dekatherm at that time. The City would commit to purchasing up to 80% of its average monthly volume, with potential for Florida Municipal Power Agency and Florida Gas Utility to purchase excess gas. This item is currently under review by the City Council. If approved, the project would involve financial transactions and contract management related to energy supply. Local businesses involved in energy services, financial services, and legal services may find opportunities related to this agreement. Early engagement could be beneficial as the agreement is subject to market conditions and final approval.

30-year term

30 year

discount of at least $0.50 per dekatherm

0.50 dollar per dekatherm

minimum discount of $0.20 per Dth

0.20 dollar per Dth

80% of its average monthly volume

80 percent