Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Procurement topic
No spam. Unsubscribe anytime.
Consultant urges Niskayuna to hedge gas now, shift electricity renewals to 'shoulder' months
Summary
An EGS representative told the Town Board that the town's natural gas is unhedged and recommended immediate procurement action; the firm proposed a mix of 24‑month fixed blocks and longer terms, and suggested a forensic audit to recover past overcharges.
At the June 25 Niskayuna Town Board meeting, a representative of energy consulting firm EGS reviewed the town’s electricity and natural gas accounts and recommended immediate steps to reduce exposure to volatile markets.
The presenter said the town’s electricity contract with Constellation expires in November and that the town’s natural gas was ‘‘not under any sort of agreement, which makes me very nervous,’’ urging that gas be hedged ‘‘as soon as possible.’’ EGS said it negotiates with multiple suppliers on clients’ behalf and can pursue a forensic audit of prior utility bills to identify recoveries.
EGS described two practical contract approaches. One option is a 24‑month fixed energy block within a longer 60‑month contract to provide near‑term price certainty while preserving a ‘‘runway’’ for later market action; another is a ‘‘blend and extend’’ that weights current and new pricing to reduce short‑term costs while extending term length. The consultant also recommended changing contract renewal dates to ‘‘shoulder months’’ (periods between peak winter and summer demand) to avoid negotiating at seasonal highs.
Board members asked for dollar‑amount examples and clarification of the firm’s role. EGS declined to guarantee future savings, saying market projections are inherently uncertain, but said it can present pricing scenarios and monitor the market for opportunities. On audits, EGS said contingency forensic work has recovered money for other municipalities and that audit services would not be billed to the town directly; rather, the firm splits recoveries when found.
Supervisor Cassidy Dorian said the board would circulate a resolution to authorize the more urgent natural gas purchase and consider a special July meeting with finance staff to review contract terms and designate an authorized signatory for time‑sensitive commodity purchases. The board gave direction to staff to circulate the proposed gas contract for review.
What happens next: the town will review the draft resolution and consider action at a special finance/agenda meeting in July. The board did not vote on a contract at the June 25 meeting.
