Barr-Reeve board OKs 12-month fixed gas-price renewal with Constellation after winter spike

The Barr-Reeve Community Schools Inc. board voted to enter a 12-month fixed-price gas agreement with Constellation to stabilize heating costs after last winter’s market spike.

Superintendent (S2) told the board Constellation, a third-party gas-purchasing firm the district has used for years, buys and sells on the market to obtain lower prices but can be required to purchase during shortages — a factor that contributed to unusually high bills this past winter. "We did see a significantly larger cost for our gas for a period of time in the winter," she said. She recommended a fully fixed renewal price so the district would lock in a negotiated rate for the coming 12 months. "That means that we would negotiate a rate right now based on the market trends ... and then whatever gas we use, that's the rate that we pay for it regardless of what the market value of gas is at the time," she said.

The superintendent said Constellation also offers a quantity-based option that purchases an estimated amount ahead of time; if the district uses less, the company would sell the excess at market rates and could issue a credit, and if the district uses more, it would pay market rates on the overage. After running a 14-month historical comparison of the two options, she recommended trying the 12-month fixed price and reevaluating at the end of the year.

Board members asked about how long the district has worked with Constellation; the superintendent said the relationship predates her tenure and likely spans several years. Chair (S1) moved to approve the 12-month fixed-price agreement, and the motion passed by voice vote. The board directed staff to reevaluate pricing at the end of the 12-month term.