Management committee recommends IGS Energy fixed-term natural gas contract for board consideration

The Iroquois County Management Services Committee on June 1 reviewed custom-priced natural gas offers from multiple suppliers and recommended that the full board consider a fixed-term contract with IGS Energy.

A presenter who reviewed supplier bids said the county’s estimated annual commodity cost for the four accounts is $16,960.54 and that market buying opportunities typically appear in April–May and again in September–November. “My recommendation would be looking at the 24 to 36-month fixed rate with IGS Energy,” the presenter said.

Committee discussion centered on tradeoffs between locking a fixed price and exposure to market swings. Members asked why some suppliers quoted lower fixed rates; the presenter attributed the differences to firms’ risk premiums and how they balance behind the local utility. The presenter also read alternative fixed-rate offers submitted by EH Energy (12 months: $0.583/therm; 24 months: $0.578; 36 months: $0.569; 42 months: $0.552).

After discussion, a committee member moved that the committee recommend awarding a fixed two-year contract to IGS Energy. “I’ll make a motion that we make recommendation that we go ahead and go with IGS Energy for a fixed two-year term,” the committee member said. The motion received voice assent and the presenter said he would bring both 24- and 36-month contract paperwork to the full board for final approval.

The committee left contract documents with the chair for signature and confirmed the presenter will provide updated pricing at the full-board meeting. The recommendation is advisory; the full board will make the final contract award.