Struthers staff to seek new natural‑gas supplier; city to mail 21‑day opt‑out notices

Staff member (city staff) told the public utility meeting the city needs to seek a new natural‑gas supplier because Constellation has announced it will not renew the current aggregation contract. “I have a handout with, with the, schedule on. So, tonight, I wanted to talk about the natural gas program and, and the renewal,” the staff member said. The contract in place had been a four‑year agreement with a fixed rate of $3.84 per MCF or $3.74 with a senior discount.

The staff member said the next steps are to issue a request for proposals, collect bids from suppliers and present those bids to city council. The planned timeline described at the meeting calls for a supplier agreement to be set up between now and early November, mailing opt‑out letters around Dec. 15 with a 21‑day opt‑out period, a February flow date and the March bill as the first to reflect the new rate.

Why this matters: the aggregation contract locks many residential accounts into a single supplier and price. Staff noted market volatility since 2022 when prices spiked — “in 2022, price is, like, $9” — and said shorter contract lengths are more common now. The presenter said they expect responses ranging from one‑ to four‑year offers and will seek competitive terms including the ability for customers to join or leave without early termination fees.

On price expectations, staff said current spot market levels were about $5.10–$5.20 per MCF in discussion and that staff hopes to see bids nearer $4.50–$4.70 if market conditions hold. The meeting also noted an upcoming FirstEnergy auction in October that staff plans to monitor to better estimate electric procurement pricing before locking rates.

Separately, staff reported a Dyna‑G “greenbacks” grant of $4,500 available to the city for energy‑related projects. “Right now, we're thinking about using it for the building at NEBO, for HVAC. So all we have to do is fill this out, attach the receipt, and we get that back,” the staff member said.

Discussion vs. next steps: the meeting discussion focused on timing, expected contract lengths and market risk; council members and staff debated whether to lock a price now or wait for market signals in October/November. No final contract award was made at the meeting; staff said they will return to council with bids and recommended terms for formal action.

What to expect: staff will prepare the supplier agreement and the RFP, monitor the October auction data, mail opt‑out notices in mid‑December and return bids and recommendations to city council for formal approval. The Dyna‑G $4,500 grant is available now and staff suggested using it for HVAC work at the NEBO building.

Ending: Staff said the natural gas certificate renewal process is also underway and will be addressed as part of ongoing work so the city maintains required certifications.