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Committees back administration recommendation for short-term natural-gas fix amid rising prices
Summary
Administration recommended a 7-month fixed natural-gas contract for 50% of expected usage after reports that equivalent 43-month pricing rose ~15% since last month; committee consensus supported placing the recommended contract on the November Board agenda.
Justin Krueger told the committee the district's current natural gas agreement is "50% fixed at $5.05/DTH" and that recent pricing proposals ranged from $5.155/DTH for seven months to $5.2340/DTH for 43 months. He added that the price had increased "approximately 15% since last month," and recommended approving a seven-month fixed contract for half the expected usage while leaving the remainder priced to the NGI physical index.
Committee members expressed no objection and the administration's recommendation will be included on the November Board agenda for formal consideration. The committee noted the intent is to limit exposure to the recent price spike by choosing a shorter-term fixed swap for half the projected usage.
