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Strafford County hears bids, staff and adviser recommend two-year electricity and gas contracts
Summary
At a county commissioners meeting, uSource adviser Liam Rex briefed commissioners on volatile New England electricity and natural-gas markets and recommended locking prices for two years; commissioners directed staff to pursue two-year, no‑strings proposals and to confirm final pricing after federal data released Thursday.
Liam Rex, an energy adviser with uSource, told the Strafford County Board of Commissioners that New England energy markets remain volatile but present a near-term buying opportunity and recommended multiyear contracts to smooth costs.
Rex summarized market drivers and a new ISO‑New England charge he called “DASI,” saying: "there's a new component... called DASI... which is a daily charge that the ISO New England procures in order to keep the grid operating smoothly." He described a market structure in which near‑term prices carry a premium and longer terms are cheaper, a condition he identified as backwardation: "the further you go out, it's a little bit cheaper... I think we're looking at a pretty good time to buy in these next few weeks."
Rex explained natural‑gas constraints into New England are supporting higher gas prices relative to prior years and said electricity offers differed by bidder; he said BP Energy's fully fixed electricity offering appeared competitive for buyers seeking a no‑adjustment contract. He also told commissioners that some suppliers treat components as adjustable and can pass through new ISO changes.
During discussion commissioners and staff narrowed options toward multiyear deals. A commissioner summarized the group decision on the record: "2 years no string on with BP and... the 2 year deal with Direct Energy," and asked staff to finalize offers after the U.S. Energy Information Administration data release at 10:30 a.m. that can affect daily pricing. County staff agreed to have vendors update prices after the EIA release and to coordinate final commitment through Gwen in the commissioners' office.
The commissioners' discussion covered tradeoffs between one‑, two‑ and three‑year terms (shorter terms can follow near‑term falls; longer terms lock more of a discount but extend commitment). Rex recommended two or three years in current conditions but cautioned against locking longer than two years for some buyers; commissioners settled on pursuing two‑year, no‑strings offers and obtaining updated quotes at the EIA release before signing.
Staff will receive updated pricing from shortlisted suppliers at 10:30 a.m. and relay those figures to the commissioners' office for a final decision.
