Ogden district energy manager warns of higher utility costs, cites $500,000 January 2023 gas spike

Logan Murphy, the district construction and energy manager and certified energy manager, told the Ogden City School District board at its March work session that rising electricity and natural-gas prices and new utility demand charges are driving large, immediate costs and require both short- and long-term operational changes.

Murphy said the district experienced a sudden market spike in January 2023 that produced a roughly $500,000 increase in its natural‑gas bill for facilities that bought gas on the open market through a transportation service. “In January 2023, we spent our entire budget for the year for all of that gas,” Murphy said, describing the month when market prices briefly skyrocketed.

Why it matters: Murphy said energy is a material district expense. For calendar year 2024, he said nearly $1.7 million (about 50% of the district’s utility costs) went to electricity and just over $1 million (about 31%) to natural gas. Those two categories, he said, make up the largest portion of the district’s utility spending.

Murphy traced the January 2023 hit to how the district procured gas. Several district facilities, including larger high‑use sites such as high schools, junior highs and pools, bought natural gas on the open market through a vendor, Summit Energy, rather than under a fixed utility pass‑through. The vendor’s costs surged for a short period, and the district absorbed the full immediate charge. Murphy said the district later negotiated a block‑purchase approach with Summit to spread risk: “Since…