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Board authorizes UGI natural‑gas services contract after staff cites volatile market; Daley abstains for conflict
Summary
The finance committee recommended a 24‑month natural‑gas contract with UGI Energy Services at a basis not to exceed $1.45 per dekatherm to lock pricing; the board approved the contract with one abstention after staff said annual gas usage is about $130,000.
Township manager Ernie McNeely told commissioners the township priced natural gas and, based on consultant Provident Energy's recommendation, sought to award a 24‑month contract to UGI Energy Services with a basis price not to exceed $1.45 per dekatherm and to lock NYMEX commodity pricing when appropriate. McNeely noted energy pricing is volatile "by the day, by the hour, even by the minute" and that the township's annual natural‑gas usage across buildings is roughly $130,000.
Commissioner Kramer asked how the numbers compared with prior contracts; staff said the previous basis price was about $0.82 per dekatherm and that while the basis price increased, the overall cost could be lower depending on NYMEX commodity prices once locked. Commissioner Daley abstained from the vote, saying UGI is a client of his firm. The board approved the authorization with one abstention.
