County hears good news on natural gas

DAVE MOSIER/independent editor

The Van Wert County Board of Commissioners received some good news in connection with the county’s contract for natural gas on Tuesday.

Bill Bradish, account manager for Palmer Energy, the energy-consulting firm that manages the County Commissioners Association of Ohio’s natural gas purchasing program, reported Tuesday on the latest developments in the natural gas pricing area.

The good news for Van Wert County from Palmer’s RFP (request for proposal) is that the county’s natural gas supplier, Dominion Choice, has lowered its basis price more than 75 percent, from $1.03 to 25 cents. Under the current contract, 15 county buildings are being heated under the contract, including the County Annex building; Brumback Library’s main library facility and its Convoy, Willshire and Middle Point branches; two Thomas Edison Center locations; the Sheriff’s Office; County Courthouse; the county barn on East Crawford Street; and two county engineer’s locations.

Bradish said his company is recommending that the county enter into a two-year contract when the current contract with Dominion Choice expires, with a 30-percent hedge as an attempt to avoid supply problems this winter. The Palmer Energy consultant added that price point markers would also be set to automatically trigger future hedge purchases, if needed.

Bradish said last year’s hard winter resulted in natural gas supplies that remain depleted, which could result in shortages and higher prices this winter.

The two-year contract, Bradish explained, would provide a better hedge for the upcoming winter than a one-year contract, but he felt a three-year contract would not be flexible enough to take advantage of possible price swings down the road.

The commissioners said they would be reviewing the recommendations, and list of properties, to see if adjustments should be made before giving their final approval to the natural gas purchasing plan.