Williams Signs 10-Year Deal to Supply Power to California

Williams Cos.

(WMB) - Get Report

said Thursday that one of its units reached a 10-year agreement with the

California Department of Water Resources

to provide up to 1,400 megawatts of power at a fixed price.

Financial terms of the deal weren't disclosed.

Starting in April, the energy company will provide at least 175 megawatts of peaking power, increasing to at least 350 megawatts by the beginning of June, and rising to at least 900 megawatts by 2006. Throughout the course of the agreement, Williams will provide a mix of peaking power, 16 hours a day every day except Sunday, and round-the-clock-power.

The contract allows Williams to provide up to 500 megawatts more beginning 2003.

Shares of Williams rose 14 cents, or 0.3%, to $41.79 in the

New York Stock Exchange

trading session today.

Earlier this month

Calpine

(CPN)

signed a $4.6 billion deal to

sell electricity to California for the next 10 years.