Finance Committee - 02/05/2020 Page 2
Mayor Donchess
And | think the gas contract is up in May?
Ms. Brown
The gas contract is up in May, electric is up in November; right now the market is extremely low and I’ve been
itching to buy. We've been at an 8-year low for two weeks and a 9-year low right now, So it is a really good
time to buy natural gas and electricity.
Mayor Donchess
And these contracts would be for what period of time?
Ms. Brown
That would depend. | normally lock in, for at the most, two years at a time to 24 months; but if prices are
looking extremely low | might do a three-year contract.
Alderman O’Brien
Ms. Brown, is there a better time of year for some of these things? | would imagine | might buy oil let’s say in
the summer time because it’s a little bit cheaper? Is that the same with the other fuels, natural gas and
everything buying in an off-peak? | imagine the price goes up during heating season.
Ms. Brown
So normally that process does work so in May and June you will see lower prices, but right now the winter has
been so mild, that prices have been going down because they accounted for more energy use than we have
used this season. So that pushes rates to be lower. So like | said, every season is energy season because
you never know how it’s going to play out.
Alderman Klee
When we would lock into this price, so we said to you, ok you do it. You would lock into that price and then we
would get the contract. Where this contract isn’t up until May if you were to lock in like tomorrow we would lock
in that and as of May that would become the official?
Ms. Brown
Yes.
Alderman Klee
So what we are doing right now is still going to stay at the rate that we are at until the May contract and then
you would go 2 or 3 years however you decided.
Ms. Brown
Yes | could also lock in for November right now providing the prices are good.
Mayor Donchess
For the electricity.
