Agreements Reduce Risk and Increase Cash Flow by Extending Power Sales Through 2011
Williams has announced the sale of dispatch and tolling rights and natural gas supply arrangements to Southern California Edison, a subsidiary of Edison International.
The seven contracts "mirror" Williams' rights under its tolling agreement with certain subsidiaries of the AES Corporation and represent up to 1,920 megawatts of power.
Southern California Edison is an investor-owned utility serving customers in southern, central and coastal California. The agreements will be part of the supply resources that allow the electric utility to meet its customers' growing energy needs.
"These contracts help Williams' power business reduce risk and generate cash flows beyond 2010," said Bill Hobbs, president of Williams Power. "The deal is an effective economic hedge with favorable credit and pricing terms, and is consistent with our strategy by locking in future power sales from the AES plants in Southern California," he said.
