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FPUA approves two-year gas-capacity deal with Leesburg to replace recalled supply
Summary
FPUA approved a two-year agreement (with one-year renewals) to secure 800 decatherms of summer gas capacity from the city of Leesburg after Sunrise recalled 300 decatherms; 400 decatherms are tariff-locked (about $0.51 per decatherm reported) and 400 would be purchased at market price while the utility awaits a new pipeline expected in 2028.
The Fort Pierce Utilities Authority board on June 2 approved a two-year gas-capacity agreement with the city of Leesburg to add 800 decatherms of summer supply after the city of Sunrise gave notice it would recall 300 decatherms beginning July 1.
Mister Cisneros explained the arrangement: "They have called back on that gas capacity... that callback starts July 1, so next month." He said FPUA's winter capacity is about 2,100 decatherms per day, summer capacity about 850, and winter use averages roughly 1,600 — leaving a gap that the market fills when needed. Cisneros said the Leesburg agreement "pushes" FPUA's capacity profile closer to demand and reduces market volatility while locking a portion of supply at a lower price.
Cisneros described the contract terms: the agreement would start July 1 and run through Dec. 31, 2028, with a one-year renewal option; it covers 800 decatherms, of which 400 are tariff-locked and 400 would be procured at market price. He told the board the locked portion would cost about $0.51 per decatherm (staff compared that to Sunrise’s prior $0.58 rate), and noted FPUA may resell unused capacity to offset costs.
Board members asked how Leesburg had excess capacity and how callbacks are managed; staff and the gas superintendent explained a large Leesburg customer had reduced demand and that FTU membership coordinates calls and offsets among member cities. One board member thanked Leesburg for helping secure capacity while FPUA waits for a new pipeline expected online in 2028.
A motion to approve the agreement passed by roll call; members said the deal should save money versus buying all incremental winter/summer capacity on the open market.
