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Facilities committee to seek permission to lock a lower natural gas supply rate, administration to negotiate three‑year deal
Summary
The committee heard that natural gas supply rates have fallen and that administration, working with Amorex, will solicit at least three bidders to lock a three‑year fixed supply (supply+delivery) and bring the selected contract to the board for approval; staff estimated roughly $88,000 in annual savings compared to December rates.
The Council Rock School District facilities committee discussed moving quickly to lock a lower natural gas supply rate after Amorex Energy Services reported a recent drop in market prices.
Jessica Bridal, who presented the item for the administration, said Amorex assists the district with procurement and monitoring of gas and electric markets. "The 3 year natural gas supplier agreement with UGI Energy Services, who would be the supplier, expired in December with a fixed rate of $4.57 per dekatherm," Bridal said. She reported that recent trading pushed the supply price down to about $3.12 per dekatherm and asked the committee for permission to work with Amorex to solicit at least three suppliers and sign a low fixed three‑year agreement, with the intention of bringing the chosen contract back to the full board for final approval.
Board members asked how much the district might save. Bridal and other administration members indicated the comparison between the earlier rate and the current market could translate to about $88,000 in savings over the course of one winter year if the district had locked December prices versus current market prices, although savings vary with usage and weather.
Questions also addressed the separate delivery charge (which administration said is more stable than supply), timing for bids and the fact that price locking is a market decision: once a fixed contract is signed it remains at that price and does not reset to lower subsequent market moves. Administration said Amorex will issue bids to at least three suppliers and return to the board for approval of the chosen supplier and contract.
The committee agreed to place the item on the board agenda for formal consideration and asked administration to proceed with the solicitation and to return with the recommended contract terms.
