Albany County authorizes extension of natural-gas supply agreement through 2029

Albany County legislators authorized the use of the Niagara Municipal Electric and Gas Alliance procurement vehicle to extend natural-gas supply contracts with NRG to Oct. 31, 2029.

Direct Energy Business Executive Director Gaudio told the legislature the current gas contract is set to expire in 2027 and that extending through 2029 would help the county manage price volatility caused by global and domestic market factors. "Given the volatility of the markets ... we felt locking in at least a basis cost now would make sense," Gaudio said, adding that the countywould attempt to dollar-cost-average purchases and hedge portions of supply as market dips occur.

Legislators asked about recent price oscillations and the practical mechanics of hedging. Gaudio explained that exports and rising demand are pushing prices upward and that the county has previously used hedging strategies on the electric side to capture dips during shoulder months (spring and fall). He said longer-term contracts provide better leverage to smooth costs over time.

A motion to authorize the extension and to use the state procurement bid was made, seconded and approved unanimously. The extension is intended to provide price stability; staff will continue to monitor market conditions and implement hedging tactics as appropriate.