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Friday, April 23, 2004
Atlantic County Successfully Bids Natural Gas Contract
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County Executive Dennis Levinson has announced that Atlantic County successfully bid natural gas for the Atlantic/Cape May Energy Cooperative at a savings of 15 percent on the regulated Board of Public Utilities (BPU) rate. On April 20 the Board of Freeholders approved a two year contract with South Jersey Energy to provide natural gas from June 10, 2004 to June 9, 2006 at a rate of $7.2631 per dekatherm. The current BPU rate is $8.358 per dekatherm.
Levinson explained that in anticipation of a successful bid, the county had budgeted for a 6 percent increase based on increasing energy costs. However, the bids came in substantially lower than expected.
"We are extremely pleased that the lowest rate bid was only 2.3 percent higher than our 2003 rate. This could mean real savings for the county and the Cooperative members if temperatures remain consistent with those of the past year," said Levinson.
South Jersey Energy agrees to provide the lowest percentage upcharge using the base of the NYMEX per dekatherm of natural gas for each of the 45 interested Cooperative members. The Cooperative includes municipalities, school districts and county and municipal authorities.
For more information, please contact Kathy Arrington, Director of Budget and Purchasing, at (609) 343-2268. |
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