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Mayor recommends four‑year natural gas aggregation rate to hedge against price volatility
Summary
Mayor Dunphy told the council IEC recommended a four‑year natural gas aggregation rate of $4.92 per MMBtu to lock in price protection; she said residents could opt out at any time and she will bring legislation at the next meeting.
During her report Mayor Dunphy presented a handout from Independent Energy Consultants (IEC) reviewing wholesale natural gas pricing and supplier offers. IEC recommended locking in a four‑year aggregation rate of $4.92 per MMBtu; the mayor said that option, while approximately 25% higher than recent averages, would hedge against further price spikes and that residents may opt out at no cost if market prices fall below the aggregation rate.
The mayor noted that Constellation (the Village's incumbent gas provider) is not bidding on community aggregation projects and that IEC reviewed other suppliers; comparable offers cited in the handout included NOPEC’s two‑year rate of $5.75 and a 48‑month listing at $7.08 on a marketplace referred to in the handout. IEC recommended the four‑year $4.92 option as a reasonable hedge and the mayor said she would draft legislation for council’s consideration at the next meeting.
Councilmember Chris Scott said he agreed with the four‑year option, emphasizing residents retain the right to opt out. The mayor will prepare legislation for the next regular meeting.
