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Hawarden council approves amendment to long-term gas supply agreement to seek new discount period
Summary
Council voted 5-0 to authorize an amendment to its long-term gas supply contract with PIFA/Clayton Energy to seek a new discount period; staff said the arrangement has saved about $18,900 per year and will only proceed if the discount meets the council's threshold.
The Hawarden City Council approved Resolution 2026-08 on March 25, 2026, authorizing an amendment to the city's long-term gas supply agreement to permit seeking a new discount period through the Public Energy Facility Authority (PIFA).
Council discussed the 30-year gas supply contract structure and the decision to pursue a new discount period after the initial period (2019'2026). The mayor and staff explained that the PIFA arrangement allows the city to contract for roughly 65% of its monthly supply through pooled purchasing and to obtain discounts funded through revenue bonds. Staff stated the arrangement currently returns about $18,900 in annual savings to the city.
During discussion, staff said the city and Clayton Energy have been timing the market and will not proceed with the amendment unless the new discount meets the council's threshold (staff indicated they would not move forward if the discount fell below the desired level). Council voted by roll call, and the resolution passed 5-0.
The amendment authorizes staff and partners to pursue a new discount period and to proceed with bond and closing activities as appropriate; council did not specify an exact closing date at the meeting. Next steps include finalizing discount terms close to the transaction closing and coordinating with bond counsel.
