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Board renews natural-gas purchase agreement; district expects roughly 18% savings
Summary
Trustees approved renewal of the district's natural-gas purchase agreement with Commercial Energy in Montana after finance staff said market prices produced a near-18% drop that could translate to about $70,000 in lower expenses, assuming a normal winter.
District finance staff recommended renewing the natural-gas purchase agreement and relocking the district's futures contract after staff reported lower market prices. "The natural gas bill will decline approximately, 18%... which will translate to probably in the neighborhood of $70,000," Chris told trustees, adding that the district's expected gas-related expense would be in the neighborhood of $310,000 absent an unusually severe winter.
Trustees asked about how the contracted volumes and storage are handled; Chris explained the district locks a price per decatherm and the supplier manages storage and delivery, and that there is no separate lump-sum volume purchase. The board moved, seconded and approved the renewal with the pricing structure presented.
