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City eyes purchasing natural gas further in advance

City eyes purchasing natural gas further in advance

Would potentially keep costs lower, level for rate payers

November 14th, 2013 in News

The city of Fulton is seeking to buy 40 percent of its natural gas up to a decade in advance to keep rate prices level.

At Tuesday's council meeting, Director of Administration Bill Johnson presented to the council a report from the Interstate Municipal Gas Agency stating that they would receive a fixed price of about $4.80 per 1,000 cubic feet were the gas to be bought now based on the city's usage over the past 10 years.

Mayor LeRoy Benton said the council had "challenged Bill to keep gas prices as level as possible" for the sake of the city's rate payers.

Johnson said that the council felt the average of $4.80 per unit, while still below records, seemed on the high end.

"We've been in natural gas long enough that we've seen $15 (per unit) gas," said Director of Administration Bill Johnson. "Being able to buy it even at $4.80 would avoid those prices if gas were to take off again."