Shell Energy North America (Shell Energy) is able to provide firm, high priority natural gas supplies and offer multiple pricing options to ACWA members. Members can choose market index or fixed pricing and purchase gas daily, monthly or for multiple months or years at a time. They can choose to aggregate loads for better pricing, purchase the NYMEX piece of the price separate from their basis and use the different options structures, including collars, caps and swaps, offered by Shell Energy for hedging.

To assure supply reliability, ACWA members are given the company’s highest priority for service in the event of any shortage or operational difficulties.

Beyond pricing, Shell Energy's experienced personnel are leaders in mid- and back-office services for the California energy industry. The staff provides accurate scheduling, balancing and accounting services and employs standard industry contracts.

On the gas side, Shell Energy owns and manages both long-term firm interstate natural gas transportation and storage. With roughly 200 customers, the company moves 1 billion cubic feet per day (Bcfd) of gas across the West and is the second largest shipper on Kern River.

Looking ahead, Shell Energy has negotiated rights to half of the initial 1 Bcfd processing capacity of the Energía Costa Azul liquefied natural gas regasification terminal being developed in Baja California, Mexico. Expected to be fully operational by 2008, this terminal will be the first of its kind on North America’s West Coast and will dramatically change the natural gas market in the West.

About Shell Energy North America:

Shell Energy is one of the preferred providers in what originally was the ACWA-Utility Services Agency energy program. The company is a leader in the North American natural gas and electric power markets with expertise in energy marketing and trading, risk management, energy utilization, asset and supply portfolio management, financial services, power generation and gas transportation and storage. The company is also part of the global Shell Trading network, which offers marketing, trading and shipping services and possesses a leading portfolio in gas, power, crude oil and refined products.

Shell Energy's staff is available to ACWA members for meetings at their offices, including presentations on energy industry topics of importance. Additionally, Industry Fundamentals and Pricing Reports are sent out several times each week to all ACWA members wanting such information.

The company is headquartered in Houston, Texas, with offices throughout North America. Its West Region, based in San Diego, comprises the area west of the Rocky Mountains and extends into Canada and Mexico with satellite offices in Oakland and Portland, Oregon .

For more information, contact Marcia Wulff, ACWA’s Program Administrator at 916-441-4545, marciaw@acwa.com.