GRU and City of Alachua Propose Contract Extension
Possible two-year extension of purchase power agreement
Subject to the approval of both city commissions, the cities of Alachua and Gainesville are discussing a two-year extension of their purchase power agreement.
Alachua has purchased wholesale power from GRU since 1992 and the contract is due to expire on December 31, 2008. Alachua previously received approval from its city commission to negotiate a wholesale power agreement with Progress Energy; however, details and further transition planning for the agreement have not been completed. Therefore, the City of Alachua, Progress Energy and GRU determined that a contract extension with GRU is in the best interest of all three parties.
The City of Alachua will continue to work towards a long-term wholesale power provider and will consider all qualifying entities throughout the process. Once the terms of the two-year extension have been agreed upon, the contract will then be presented to the Alachua and Gainesville city commissions for approval.
"This extension is in the best interests of the City of Alachua's utility customers," stated Alachua City Manager Clovis Watson, Jr. "It will provide them with competitively priced, reliable energy for the next two or three years while we continue to implement changes necessary to strategically position ourselves for the best long-term wholesale power purchasing opportunities."
GRU General Manager Bob Hunzinger said, "The contract benefits Gainesville's customers by providing an additional revenue source which helps keep rates lower."
Subscribe to the GRU News Flash and get the latest information on changes to our prices, energy and water savings tips, copies of GRU news releases, new product and service information and more.
