PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5h 
ACTION ITEM               Date of Meeting September 11, 2012 

DATE:    August 30, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Dave Soike, Director, Aviation Facilities and Capital Program 
SUBJECT:  Contract to Purchase Natural Gas 
Est. Amount of This Request: $2,000,000  Est. State and Local Taxes: $195,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to execute a contract to
provide natural gas for Seattle-Tacoma (Sea-Tac) International Airport. The contract will be
structured as a one-year agreement with up to four years of additional service. 
SYNOPSIS: 
Puget Sound Energy (PSE) currently provides natural gas to Sea-Tac Airport. Natural gas was
deregulated in Washington State in the 1980s, which allows Sea-Tac to publicly advertise,
receive bids and contract with energy services providers other than the local utility. In addition
to PSE, there are a number of independent providers of natural gas utilities in the state of
Washington. The Port intends to issue a competitive solicitation to four qualified natural gas
vendors and issue a contract by November 1, 2012, that will cover the next one-to-five-year
period and should reduce the Airport's natural gas expense by 10 percent. 
BACKGROUND: 
Technology developments in the last few years have greatly increased the supply of natural gas
in North America. The U.S. now produces more natural gas than it consumes and has become a
net exporter of natural gas. This excess supply of natural gas has caused significant downward
pressure on the local index and shorter-term markets. By executing this contract, the Port
expects to reduce its natural gas expenses by 10% or more. The current provider, PSE, will have
an opportunity to bid in the competitive solicitation.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 30, 2012 
Page 2 of 3 
PROJECT JUSTIFICATION: 
Sea-Tac Airport is comprised of over 3,000,000 square feet of terminal space and operates 24
hours a day, seven days a week. Natural gas is utilized at the Airport's central mechanical plant
boilers to provide heating to the Airport terminal building and the Airport consumes
approximately 2,700,000 therms of natural gas annually. 
This contract will ensure the Port is receiving natural gas at the best possible rates. 
Project Objectives: 
Provide secure and reliable natural gas to Seattle-Tacoma International Airport at the best
possible price. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
Contract for natural gas energy services for Sea-Tac Airport.
Schedule: 
The proposed contract is anticipated to be executed by November 1, 2012. 
FINANCIAL IMPLICATIONS: 
Budget Status and Source of Funds: 
The annual contractual expenses included within the operating budget approved annually by the
Port Commission. 
ENVIRONMENTAL SUSTAINABILITY: 
Natural gas is currently our cleanest and lowest cost fuel option. 
BUSINESS PLAN OBJECTIVES: 
Contracting for natural gas energy services supports the goal to reduce airlines cost per
enplanement without compromising operational and capital needs.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 30, 2012 
Page 3 of 3 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1 - Continue to receive natural gas services from our local utility without competing
the service. This is not the recommended alternative. 
Alternative 2 - Authorize the Chief Executive Officer to solicit bids and execute a new contract
to purchase natural gas and energy services. The alternative allows competition. The resulting 
contract will be structured as one-year agreements with up to four years of additional service. 
This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None.