Board hears plan to hedge natural-gas costs; staff says short-term pilot could save 'probably over 10,000'

Board members discussed a proposed natural-gas procurement optimization at the Nov. 4 meeting intended to convert a variable commodity gas cost into a fixed contracted rate for a set term.

A staff presenter described working with an energy consultant (Energy Resources Corporation) to run a short-turnaround bid process. The consultant would include its fee in the bid price and issue a deadline timed to a board meeting to allow rapid contracting and notice to Con Edison. The presenter said four vendors responded to a recent solicitation and that, based on a short pilot period, "they think we can save probably over 10,000," and that the district’s Con Edison delivery charges totaled about 212,000 last school year.

The staff member outlined logistics: a noon bid deadline tied to a board meeting date, a contract that would be executed the following morning if the board approved, and a Con Edison requirement for roughly 10 business days’ advance notice to lock service changes. The presenter said the pilot would likely start in January if the board approved the procurement timeline and that the consultant would report savings back to the board in May to inform future planning.

Board members thanked staff for pursuing potential utility savings and noted the plan would be a short-term test of hedging practices before broader adoption. No formal procurement vote was recorded in the public portion of this meeting; staff indicated they would return with bid results and a recommendation for board action if appropriate.