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Council authorizes limited gas hedging for 2030-31 to lock target prices
Summary
The council authorized a Public Works motion to hedge 25% of expected summer 2030 gas use at $3.10/decatherm and 25% of expected winter 2030-31 use at $5.65/decatherm (or better) and to extend contracts as needed; motion passed by voice vote.
During the Public Works report, council considered a staff-recommended gas-hedging strategy that would lock portions of the city's expected natural-gas usage at target prices for future seasons. The motion, introduced by the Public Works speaker, proposed hedging 25% of expected summer 2030 use at $3.10 per decatherm or better and 25% of expected winter 2030'2031 use at $5.65 per decatherm or better, and to extend agreements with the city's carrier as necessary to execute contracts.
Councilmember Sorkin seconded the motion. After discussion, the council called the vote and approved the authorization by voice vote with ayes recorded and no opposition announced. The motion authorizes staff to enter hedging contracts up to the specified percentages and price targets; the council did not specify additional budgetary appropriations at the meeting.
