Aquila Signs Long-Term Deal with APEA

Aquila Energy said it has been awarded a $550 million long-term contract to 
supply 154 Bcf of natural gas over 12 years to members of the American Public 
Energy Agency (APEA). It is the fourth contract the agency has awarded to 
Aquila since 1998. 

"With the future of gas prices becoming more and more unknown because of 
increasing demands and tightening supply, our members will benefit greatly 
from this long-term contract," said Roger Mock, president and chief executive 
officer of APEA. 

Under the three previous contracts with APEA Aquila is supplying the agency 
with 14.4 Bcf of gas over ten years, 91 Bcf over 12 years and 141 Bcf over 12 
years. All together, Aquila is providing APEA with more than 400 Bcf over the 
next 12 years. 

APEA provides a reliable supply of natural gas to many municipal utilities 
and other public entities throughout the United States. These public buyers 
serve thousands of homes and businesses. 

"Our strategy is to provide our customers with the most effective portfolio 
of services, both financially and physically, to enhance their competitive 
position in managing their energy needs," said Tom McCarthy, vice president 
of structured transactions for Aquila Energy. 


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