Title
Approving certain contracts and transactions arising thereunder for the purchase, storage, distribution, transportation and/or transmission of natural gas entered into by the Philadelphia Facilities Management Corporation on behalf of the Philadelphia Gas Works, subject to certain terms and conditions.
Body
WHEREAS, The Philadelphia Facilities Management Corporation ("PFMC") must enter into contracts on behalf of the Philadelphia Gas Works ("PGW") to purchase gas supply, storage, distribution, transportation and transmission services in order to ensure a gas supply sufficient for the estimated maximum requirements of gas users in the City of Philadelphia; and
WHEREAS, Paragraph 2 of Section II of the Agreement Between The City of Philadelphia and the Philadelphia Facilities Management Corporation for the Management and Operation of the Philadelphia Gas Works dated December 29, 1972, authorized pursuant to an Ordinance of Council approved December 29, 1972 (Bill No. 455), as further amended ("Management Agreement/Ordinance") requires PFMC to submit such contracts to the Philadelphia Gas Commission ("Gas Commission") for its recommendations and to Council for approval before entering into them, except in temporary or emergency situations, in which case PFMC must submit contracts for such purchases within thirty (30) days after initiating such purchases to the Gas Commission and Council for their approval; and
WHEREAS, PFMC (for PGW) purchases large supplies of gas each year commencing in May and injects these purchases into storages in which PGW reserves capacity (i.e., various storage caverns located throughout the country) in order to provide for adequate firm supplies to the City's gas customers in the coming winter; and
WHEREAS, The "injection season" commences in May in order to make sure that storages are filled by the time the winter heating season occurs in November; and
WHEREAS, Gas supply sourced from storage is considered a more ...
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