Trustees lock in fixed gas rate for one year

Natural gas broker Mark Burns presented his recommendations for the Natural Gas Aggregation Program that will need to be renewed in September 2010 during Monday’s trustees meeting.

The purpose of the aggregation program is to provide residents with a lower rate for natural gas. Austintown has been participating in the program for two years.

Burns reported that they requested bids from 11 eligible suppliers with only four responses. After reviewing their options, Burns found Vectren to have the lowest bid for the third consecutive year.

New this year, Vectren gave the township the opportunity to make a choice to purchase gas at a fixed or variable rate. With the energy market at a five-year low, Burns recommended to the board to continue with the same program as they have used in the past.

The program includes a fixed rate with no opt-out fee. Although the rate has not been set yet, residents can expect the rate to be 12 percent below the standard rate at the time the township locks in on a rate.

Burns has been provided with a formula by the supplier to figure out the cost to residents. The township has until August to lock in a rate.

The board unanimously approved Burns’ recommendation to continue with a one-year fixed rate using Vectren as the supplier.

“Our goal on the board was to find the best fixed rate possible to offer the residents,” said trustee David Ditzler.

Lisa Oles inquired about future opportunities to combine with adjoining communities to increase buying power. Burns confirmed that those opportunities will be available to the community in the future. However, he explained bigger isn’t always better.

“Huge buying groups can possibly scare off smaller suppliers,” said Burns.

In other business, Farmers National Bank, First National Bank and Armstrong Cable were acknowledged for their $1,000 sponsorship from each for the Summer Concerts in the Park. Park Supervisor Joyce Gottron reported that 12 concerts are scheduled and are free to the public.

Board members spoke in support of the bond issue and the county sales tax that will appear on the May 4 ballot.

“The election gives us a great opportunity to bring money from the state into our community to build new schools,” said Michael Kurish. “With the cost of renovations exceeding 30 percent of the value of the school properties, this is an opportunity to provide our children with modern classrooms.”