UNION — Natural gas is one of the utilities provided by the City of Union Utility Department and that’s why the city is looking insure the reliability and security of its supply at a reasonable price by purchasing PEAK natural gas.
During a special meeting Tuesday evening, Union City Council voted unanimously to approve first reading of an ordinance authorizing the city to enter into an agreement with the Peak Energy Authority of Kentucky (PEAK) to purchase natural gas from it.
City of Union Utility Department Director Joe Nichols told council that PEAK is a “Natural Gas Acquisition Authority created between and among public agencies to acquire natural gas at reasonable prices that would enhance reliability, efficiency and supply security through the joint purchases and the arrangement of joint services on behalf of its members and other public agencies.”
The ordinance states that “the acquisition of secure, reliable and economic supplies of natural gas is necessary for the prudent and businesslike operation” of the utility department, as well as “the continued economic development of its community and the promotion of public health, safety and welfare.”
Nichols told council that the city is looking to purchase a portion of the natural gas available to under a prepaid agreement and that PEAK wants to sell it to the city under the terms and conditions set by the agreement.
The ordinance states that PEAK has offered to sell to the city “a supply of natural gas in the quantities” set by the agreement between the organization and Union “on the condition that PEAK issues its Gas Supply Revenue Bond, 2018 Series A, the proceeds of which will be used to acquire a supply of gas” covered in a prepaid agreement with BP Energy Company.
Nichols said that the city will acquire a supply of natural gas at a lower price and will be able to pass along those savings on to its utility customers.
“What this means is that this will enable the City of Union to purchase a certain quantity of gas at a reduced price that will be passed along to the consumers,” Nichols said.
Charles Warner can be reached at 864-762-4090.