Loading...
HomeMy WebLinkAbout09.a.1) Semi-annual report on status/pricing of natural gas purchases.Natural Gas Purchase Update Board of Directors Meeting Clint Shima, P.E. March 19, 2015 Central Contra Costa Sanitary District Current Purchasing Authorization • Natural Gas is the largest 0 &M expense item • District purchases Natural Gas from Shell Energy • General Manager is authorized to pre - purchase Natural Gas through December 2016 - $6 per MMBtu limit • Pre - purchasing continues to work well - allows staff to react to market with checks and balances. • All of Natural Gas pre - purchased for 2015 at average of $4.84 per MMBtu 9a.) 1 Summary Natural Gas Purchases • Two - thirds of pre - purchases for 2016 NG has been purchased - Average Price of $4.06 per MMBtu • Target price projected for FY 2015 -2016 Budget is $4.50 per MMBtu • Staff will ask Board for authorization to pre- purchase for 2017 3/12/2015 ■ Historical Prices t Average Shell Energy Natural Gas Price $10.00 -- - -- $9,26 $9.00 - Average over 10 $8.00 szel - -- Years: 6.50 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 M FY 2005- FY 2006- FY 2007- FY 2008- FY 2009- FY 2010- FY 2011- FY 2012- FY 2013- FY 2014- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2200/155 Summary Natural Gas Purchases • Two - thirds of pre - purchases for 2016 NG has been purchased - Average Price of $4.06 per MMBtu • Target price projected for FY 2015 -2016 Budget is $4.50 per MMBtu • Staff will ask Board for authorization to pre- purchase for 2017 3/12/2015 ■ ■- t t Summary Natural Gas Purchases • Two - thirds of pre - purchases for 2016 NG has been purchased - Average Price of $4.06 per MMBtu • Target price projected for FY 2015 -2016 Budget is $4.50 per MMBtu • Staff will ask Board for authorization to pre- purchase for 2017 3/12/2015