HomeMy WebLinkAbout~Master - Resolution approving FY 2026/27 Natural Gas Supply for ElectricRESOLUTION NO. 26-141
RESOLUTION AUTHORIZING STAFF TO ENTER INTO A
NATURAL GAS SUPPLY CONTRACT FOR FY 2026/27 FOR THE POWER PLANT
FOR THE CITY OF AMES, IOWA
WHEREAS, with the current contract expiring on June 30, 2026, City staff must
secure a price and add additional supply to the existing natural gas supply contract in the
next few months; and,
WHEREAS, the challenge in arranging a contract extension or soliciting bids for a
new gas contract is determining the price at which to commit. In the natural gas market,
quoted prices expire within a 24-hour period, which is less time than is necessary to
provide notice of a City Council meeting and approve the contract; and,
WHEREAS, since the end of the first contract, the City Council has authorized the
Director of Electric Services the discretion to commit the City to natural gas contract
extensions within defined price cap or budgetary restrictions. This strategy is being
requested again with a blended cost approach.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,
Iowa, that authorizing staff to approve extensions to the contract with Macquarie Energy
LLC, of Houston, TX, to amend the existing natural gas supply contract over the coming
fiscal year at prices to achieve a total cost of not more than $13,300,000, for the gas
quantities described below is hereby approved.
• Purchase 8,000 MMBtu/day and possibly diverting haulers directly to Boone
County Landfill approximately 2 days/week
• Purchase gas only on the spot market, under no secure gas contract, and possibly
diverting haulers directly to Boone County Landfill approximately 2 days/weekly
ADOPTED THIS 10th day of March, 2026.
_______________________________ _________________________________
Renee Hall, City Clerk John A. Haila, Mayor
Introduced by: Gartin
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Junck, Gartin, Rollins
Voting nay: None Absent: Corrieri
Resolution declared adopted and signed by the Mayor this 10th day of March, 2026.