Title
An Update on an Opt-In Natural Gas Program and Discussion Regarding Options to Move to an Opt-Out Program.
Brief Description: Following our review and discussion with the City’s energy broker regarding available options for an opt-in natural gas program-and given the lack of any viable alternatives-staff would like to discuss additional options with Council.
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.
25-108 - 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.
Purpose & Explanation
Since 2014, the City of Hudson has maintained agreements to provide residents, businesses, and other consumers with an opt-in natural gas aggregation program. This program has historically offered participants an alternative natural gas supply option through voluntary enrollment.
Due to recent market changes, staff has been working with the City’s energy broker to evaluate current program offerings and determine whether a competitive and reliable option remains available. At this time, we have not identified any viable program alternatives that would meet the City’s standards for cost stability and consumer benefit.
Given these circumstances, the administration would like to begin discussions with Council regarding potential options for continuing to offer a natural gas program to residents. We are also seeking direction on how Council would like us to proceed as we evaluate next steps and possible general election submissions to the voters.
Timing Considerations
Depending on the option selected, the City would need to meet the general election submission date.
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required.
Recommendation
Suggested Action
Based on these discussions, the administration is requesting direction from City Council on which option Council would like the city to proceed.
Submitted by,
Thomas J. Sheridan, City Manager
Kevin Powell, Director of Public Works