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Chrisney council votes to hire consultant for gas-rate study amid rising costs
Summary
The council approved a motion to hire Pat Callahan to conduct a gas rate study after staff reported the gas department has borrowed from other utilities and that the current gas-rate ordinance dates to 2013.
Kim, a staff member, told the council Aug. 4 that the gas department has been borrowing from other town utilities to cover rising costs and demand. She noted the last gas-rate ordinance was passed in 2013 and recommended hiring Pat Callahan, the town’s gas-rate consultant, to perform a comprehensive gas-rate study that would examine costs beyond the quarterly gas tracker (transportation and purchase costs) including salaries, benefits, repairs, materials and insurance.
"We generally buy our natural gas in the summer, when prices are lower, and store it to sell in the winter," Kim said. She recommended a study to ensure rates reflect the department’s full costs. John said that a number of gas projects and repairs had strained the gas fund over the years.
Council member Greg moved to hire Pat Callahan to conduct a gas-rate study; Committee member Mason seconded the motion, and the motion carried. The minutes record the approval but do not provide a vote tally or contract terms. The council did not specify a timeline for the study in the meeting minutes.
