| SCPPA Bonds were issued in 2007
for the purpose of funding a lump-sum prepayment
of future natural gas deliveries to the Project
Participants over the next 30 years.
The total aggregate quantity of gas to be delivered
by the Gas Supplier over the term of the Prepaid
Natural Gas Sales Agreements is approximately
135 billion cubic feet.
SCPPA entered into separate Gas Supply agreements
with each of the Project Participants. Each Gas
Supply Contract provides for the discounted sale
to Participants, on a pay-as-you-go basis, of
all of the natural gas to be delivered to SCPPA
over the term of the Prepaid Natural Gas Sales
Agreement.
Prepaid Natural Gas Project Participants:
Anaheim, Burbank, Colton, Glendale, Pasadena.
A fixed quantity of natural gas will be delivered
over approximately 30 years by J. Aron & Company,
with specified daily quantities of gas each month
to delivery points on the natural gas pipelines
that serve the Participants.
Under the structure of the Prepaid Natural Gas
Project, J. Aron has also agreed to remarket,
on a daily or monthly basis, quantities of gas
designated by SCPPA or its agent at such times
as these services may be necessary.
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