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Lake City approves participation in discounted gas-supply transaction after presentation from Florida Gas Utility
Summary
Following a presentation by Florida Gas Utility CEO Katie Hall about long-term discounted gas-supply "prepaid" transactions, the council approved Resolution 2025-048 directing the city’s participation; staff said the program has saved the city roughly $630,000 to date.
The Lake City Council on Monday approved a directive allowing the city to participate in a discounted, long-term gas-supply transaction arranged through Florida Gas Utility and the Municipal Gas Authority of Georgia.
Katie Hall, general manager and CEO of Florida Gas Utility, told the council the city already participates in multiple long-term supply deals and that the new transaction would be similar in structure. “We are a municipal non profit agency that provides natural gas services to 26 members...,” Hall said, describing the agency’s role. She explained the deals as long-term (roughly 30 years) arrangements that reprice every five to seven years and described them as “discounted gas supply deals” rather than prepayments.
Hall said the city’s existing portfolio yields a monthly discount currently worth about $22,000 and that, since the city began participating in such contracts, “the city has saved about $630,000.” She told the council the proposed transaction offered a minimum discount larger than prior deals and noted the board had authorized parameters to reach up to roughly 80% of average daily use across multiple deals.
City staff later presented Resolution 2025-048, described as a directive under the city’s existing gas services agreement with Florida Gas Utility to participate in the Municipal Gas Authority of Georgia–initiated transaction. Councilmembers approved the resolution by roll call.
City staff said there is no cash prepayment from the city; Hall explained the “prepaid” terminology relates to financing structures between taxable and tax-exempt participants but added there is “no downside” for the city because opt-out rights at repricing periods and protections for permanent loss of load are included.
The resolution directs the mayor to execute the directive and staff to notify the council when the transaction closes and the discounted gas begins to flow.
