Thursday, July 14, 2005

LADWP considers bonds for Natural Gas, capital improvements

The Los Angeles Department of Water and Power is seeking to shore up its natural gas reserves by buying now rather than paying later.

A separate $250 million bond would be used to replenish the department's cash after the recent purchase of a natural gas field reserve.

The department joined with a number of other local government agencies to buy the southwest Wyoming site to bolster long-term natural gas supplies, said Randy Howard, project manager for the gas project.

Since July 1, the Department of Water and Power has been receiving almost 13 percent of its natural gas requirements from the field, Howard said.

While the department spent $223 million on the field, the extra money from the bond would pay for the drilling of additional wells on the property, Howard said.