Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO TERMINATE AN AGREEMENT FOR RETAIL NATURAL GAS SUPPLY; AND DECLARING AN EMERGENCY.
Brief Description: The City’s current natural gas provider Eastern P&G has notified the city of its desire to amend the terms of their agreement to provide natural gas services.
Body
Legislative History
Res: 24-92 A resolution authorizing the City Manager to enter into an agreement for retail natural gas supply
Purpose & Explanation
In March 2025, the City received notice from Eastern P&G LLC requesting an amendment to their current agreement for the natural gas aggregation program. The most significant change involved replacing the fixed rate of $3.75/MCF with a variable rate tied to Enbridge’s Standard Choice Offering (SCO) rate minus $0.05. According to information from various meetings between the City, the broker, and the service provider, this amendment was prompted by several market factors, including colder-than-expected winter temperatures, evolving market conditions, and capacity constraints.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Does this legislation require use of an emergency clause?
X Yes, to terminate the rate agreement ASAP
No
Recommendation
Suggested Action
Staff is requesting Council approval to terminate the current retail natural gas agreement between the City of Hudson and Eastern P&G.
Submitted by,
Thomas J. Sheridan, City Manager
Kevin Powell, Public Works Director