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The Examiner U-46 News Feed

District U-46 monitoring ‘fluid’ natural gas pricing


By Seth Hancock
  Supply chain issues are causing prices to soar in the natural gas market as School District U-46 is presenting a procurement contract for approval by the Board of Education.
  The proposal, which would allow the district to sign a contract with either Constellation Energy or Mansfield Power and Gas, was presented at the Monday, Dec. 13, 2021 board meeting with a vote planned for Jan. 10.
  The district entered into a natural gas contract three years ago at 27 cents per therm, that contract ending this coming April. Sheila Downs, director of plant operations, said the price was 38 cents per therm a month earlier.
  “Unfortunately, the current climate is vastly different,” the proposal states. “In fact, natural gas and electricity prices have soared over the past five months as traders focus on a significant year-over-year natural gas storage deficit and concerns of tight natural gas supply ahead of the upcoming winter.”
  Sue Kerr, the board’s president, said it sounds “very fluid” and it’s uncertain where prices will be.
  Downs said: “That’s correct. It’s a very volatile market currently, and so we’re obviously watching the market.”
  Under the current contract, Downs said that “rates change daily” but “it would be very minimal. Now, if we did that and waited for two board meetings, it could be substantial.”
  Board member John Devereux asked if it will be effected by waiting until January. Downs said there are still several months on the current contract which gives them months to watch the market and lock in a rate, and she clarified this is to authorize the district to sign a contract and the final rate would be brought back once it’s secured.
  “Once we get a rate we feel is competitive, we will lock it in,” Downs said, adding the district works with a consultant.
  Board member Veronica Noland asked if the rates are just going up or if they could go down. Downs said “it fluctuates,” but there’s “not a perfect science.”




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