Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH MAJOR ENERGY SERVICES LLC FOR RETAIL NATURAL GAS SUPPLY; AND DECLARING AN EMERGENCY.
Brief Description: Following a review and discussion of the forecasted gas rates with the Buckeye Energy Brokers, the City is being advised we should enter into a 1-year Agreement with Major Energy Services LLC by our broker.
Body
Legislative History
14-97 - an ordinance authorizing the city manager to enter into an agreement related to the marketing of competitive retail natural gas supply; and declaring an emergency.
24-92 - a resolution authorizing the City Manager to enter into an agreement for retail natural gas supply; and declaring an emergency.
Purpose & Explanation
Since 2014 the City of Hudson has had agreements to provide Hudson residents, businesses, and other consumers with an “opt-in” program for natural gas. In summary, this program is an opt-in gas aggregation program for the community.
Staff have been working with the City’s energy broker to review current rate offerings and gas rates forecasts to determine the best options for the City. Considering the current market and natural gas futures which are trending up, per our broker, as we move toward the fall of the year. The broker recommends a one-year term with a fixed rate with Major Energy Services LLC.
Buckeye Energy Brokers has provided Hudson with an opt-in program for a one-year term that is currently at a rate of $5.06/MCF effective with the November 2025 billing cycle. The rate is subject to fluctuate between now and the signed agreement.
The rate from last year was $3.75 MCF through the company Eastern P & G.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required
Does this legislation require use of an emergency clause?
X Yes (due to market and offer time limitations)
No
Recommendation
Suggested Action
The City of Hudson Administration recommends Council approves the resolution to enter into a one-year agreement with Major Energy Services LLC of 12140 Wickchester Ln, Suite 100, Houston Texas.
Submitted by,
Thomas J. Sheridan, City Manager
Kevin Powell, Director of Public Works