By Business Courier of Cincinnati

The city of Hamilton secured a new two-year contract with ATMOS Energy Marketing for natural gas purchases that is expected to provide estimated savings around $1 million and reduce rates for residents, according to a news release.

The city has owned and operated its natural gas utility since 1890 and currently serves more than 23,000 customers, making it the largest municipal gas distribution operation in Ohio. However, since the city does not own its own natural gas reserves or storage facilities, it contracted with ATMOS in 2005, who purchases and delivers natural gas, according to the release.

â¿¿It is expected to save about a half a million dollars a year in the cost of getting gas delivered to the city and that money will be directly returned to the consumers through lower rates in the form of a reduction in the gas

cost recovery mechanism, when it goes into effect in November of this year," said Charles Young, deputy city manager.

The city⿿s gas system as well as its customers will benefit from the significant savings that the contract will provide. The contract ⿿will provide access to local gas supplies, through the Lebanon, Ohio Hub, including supply from the Rockies, the Marcellus Shale region in the East and the traditional Gulf/on-shore supply areas,⿝ according to a news release.

Copyright 2010 American City Business Journals

http://cincinnati.bizjournals.com/cincinnati/stories/2010/07/12/daily31.html?ana=thestreet
Copyright bizjournals.com 2010