PUC accepts natural gas supply management proposal | News, Sports, Jobs
NEW ULM – The New Ulm Public Utility Commission has accepted a proposal from World Kinect to provide energy management services for the supply of natural gas.
PUC chief executive Kris Manderfeld said utilities in New Ulm started looking for new natural gas supply options after the price spike last February. NUPU has started to explore options to mitigate price spikes.
Requests for proposals have been submitted to companies that could help protect NUPU against volatility in daily gas prices. Four companies responded with options. The PUC chose the World Kinect proposal.
World Kinect has 30 years of energy management. Manderfeld said the company can offer advice on buying costs and forecasting.
“Their main objective would be to reduce the cost of natural gas through competition, strategy and knowledge of the gas industry” Manderfeld.
World Kinect has multiple contracts with gas suppliers, which means that NUPU has options to buy from different companies, which allows for price competition.
Manderfeld believes more natural gas peaks are likely in the future, especially with renewables coming online. NUPU does not have the staff available to monitor the markets on a daily basis. It would also create consistency for the future.
The agreement would be for three years at $ 5,900 per month or $ 70,800 per year for energy management services.
A proposal from Short Elliot Hendrickson, Inc. (SEH), for the wellfield mound and access restoration project was accepted for $ 23,400.
The proposal is for contract administration services for the FEMA Access Catchment and Restoration Mound Project. The proposal will include management and documentation of the construction process, a final topographic survey with final elevation drawings, construction staking, review equipment, material submissions and document quantities.
This project is part of a disaster declared by FEMA. Funding is allocated to the FEMA State, with New Ulm being repaid after the project. The FEMA process requires full documentation with full accountability.
LaShandra Taylor spoke to PUC commissioners about the need to continue hardship payment procedures. The PUC previously suspended disconnection and penalties under a COVID-19 deferred payment plan. The plan was designed to be in place until the end of the peacetime emergency. NUPU began to revert to a normal payment plan on May 31.
Taylor said the normal payment method was acceptable if things got back to normal, but said: “COVID is still ongoing. “
Taylor said her family was struggling to pay the utility bill due to illnesses linked to COVID. Her husband only recently returned to work and she has been out of work due to COVID-related hospitalizations. Taylor is still experiencing respiratory problems related to COVID. She cannot lift more than 50 lbs, which excludes her from most available jobs.
“I think you should take into consideration what we are going through”, she said. “I’m sure I’m not the only one. You have people with disabilities. You have old people, you have families in distress.
Taylor wanted the PUC to know that there were people who weren’t able to get back to the pre-COVID era. She asked the commission to give people more time to pay. The commission thanked Taylor for his comments.
The PUC authorized the city manager to accept Minnesota Mechanical Solutions, Inc.’s offer for the replacement of the carbon carrier at the odor scrubber at 20th Street Lift Station for $ 11,800.
Two quotes were received for this project, with Minnesota Mechanical Solution offering the lowest bid.
The project was budgeted in 2021 for $ 50,000. The bid was significantly lower.