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Board authorizes township manager to lock natural gas supply with UGI at up to $1.45/decatherm; Daley abstains
Summary
Staff recommended awarding a natural-gas supply agreement to UGI Energy Services with a basis price not to exceed $1.45 per dekatherm and locking NYMEX commodity pricing; staff said total annual gas use across township buildings is about $130,000. The motion passed with one abstention (Commissioner Daley).
The finance committee recommended authorizing the township manager to enter into a natural-gas supply agreement with UGI Energy Services and to lock commodity pricing as market conditions dictate. Staff said the consultant (Provident Energy) recommended UGI and quoted a basis price not to exceed $1.45 per dekatherm.
Township staff noted that the township's total annual natural-gas spend across buildings is roughly $130,000 and that energy pricing is volatile. "We're coming out of a multi year contract where the basis price was 82¢ per dekatherm," a commissioner observed; staff said the basis price is only one component of the total cost and that the final total will depend on the NYMEX lock. Commissioner Daley abstained, citing a client relationship with UGI; the motion passed with one abstention.
