An external energy consultant recommended July 15 that the district run a competitive supplier prequalification and a live reverse auction for electricity and solicit fixed pricing for natural gas. The consultant said Decatur’s natural‑gas contract has already expired and the electricity contract expires in December 2025.
The adviser explained the auction model: qualified suppliers participate in a timed, real‑time bidding event in which bids are reduced incrementally; the process is intended to increase competition and has shown 3–5 percent additional savings over traditional sealed RFPs in their experience. The firm will prequalify suppliers and run simultaneous pricing rounds for 1‑ through 5‑year terms so the board and administration can compare cost tradeoffs; the consultant suggested 2‑year terms may be “the sweet spot” amid current volatility.
Because commodity energy prices change rapidly, the consultant asked the board to consider authorizing administration to execute contracts on the day favorable pricing is available, after the prequalification round provides indicative pricing; waiting for a later board meeting could make a quoted price invalid. The consultant also noted the district’s previous long‑term contracts taken in an unusually low market period and said the district’s on‑site solar projects will materially reduce future purchased electricity if they are completed.
Board members asked about tariff impacts, contract lengths and procurement details. The consultant said auctions provide transparency, include incumbents and can be observed live; staff will provide the indicative pricing round to the board before asking authorization to execute if the pricing meets thresholds.