“super” joint action presentation to appa 2004 joint action workshop dec. 5-7, 2004
TRANSCRIPT
“Super” Joint Action
presentation to
APPA 2004 Joint Action Workshop
Dec. 5-7, 2004
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“Super” Joint Action
What is it?
Why do it?
Roadblocks
PGP
Other Efforts
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What Is It?
The idea of “super” joint action is not new
Finding opportunities where agencies spread over multiple regions can create synergies
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Why Do It?
Create economies of scale in market
Diversify risk of participating in opportunity
Sharing of knowledge and experience across multiple agencies
Sharing of costs
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Roadblocks
State laws/regulations
Agency Interlocal agreements
Multiple legal staffs
Egos
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PGP
Idea for multi-regional agency spawned by MGAG, FMPA and MEAG
Marketing of concept MGAG – municipal gas groups in Southeast
FMPA – Florida municipals, electric and gas
MEAG – other TEA members
Initial interest by 15 JAA/municipals in February 2004
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PGP Continued
LOI signed by 10 JAA/municipals April 2004 Work began on agreements in May 2004
Production Sharing Agreement
Letters of Incorporation
By-Laws
Committees formed to help move process along Legal & Tax
Finance
Operations
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PGP Continued
Weekly conference calls and monthly face-to-face meetings
Multiple drafts of all agreements
Letters of Incorporation filed in Georgia in October 2004
Production Sharing Agreements signed by 7 entities in November 2004 and election of Officers
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Why PGP?
Mission Statement
To provide the most economical and reliable long term natural gas supplies in the most proficient manner for the greater benefit of the customers served by its Members.
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Why PGP? Continued
Opportunity to invest in multiple projects in multiple locations
Sharing of overhead costs
Complimentary load shapes of gas and electrics
RISK DIVERSITY!!!
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Other “Super” Joint Action
The “Good Guys”
Group of large Florida municipals, one electric cooperative and Georgia JAA
Objective to spawn ideas for cooperative efforts
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Other “Super” Joint Action
Ideas from “Good Guys”
Mutual Aid Agreement
Solid Fuel Generation Project
Natural gas reserve acquisitions
Joint purchasing of LNG
Joint disaster recovery
Statewide power pool
Coal reserve acquisitions
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Final Comments
“Super” joint action provides great risk diversity opportunities and economies of scale
Be prepared for roadblocks
Allows for thinking outside the box
Take advantage of talents available at multiple agencies
Lowers costs of projects
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“Super” Joint Action
Questions?