The National Public Gas Agency (NPGA) recently locked in favorable pricing on a natural gas pre-pay related transaction that will provide more than $91,000 in discounted annual savings. The NPGA Board of directors heard an update on the pre-pay related transaction at their board meeting in September at NMPP Energy.
The Board in June approved pursuing the prepay-related agreement through the Municipal Gas Authority of Georgia, pending favorable final pricing. This most recent agreement’s pricing period will begin April 2024.
With the addition of the latest agreement, NPGA members have savings created through four prepay-related gas supply agreements.
Gas Supply Savings
NPGA’s gas management program activities resulted in a savings of more than $39,000 from May through July. The savings came from competitively bidding gas supply and capacity payments on pipelines serving NPGA members.
Grant Opportunities Update
An update was provided regarding grant funding opportunities available through the Natural Gas Distribution Infrastructure Safety and Modernization grant program.
The deadline for the second round of funding ended in early August. Two NPGA members applied for second-round funding. Two NPGA members, the Village of Stuart, Neb., and City of Trinidad, Colo., were awarded grant funding during the first round of funding. The program provides nearly $1 billion in funding over the next five years to modernize municipally-owned natural gas distribution pipes.
Details on the pipeline grant funding opportunities are available on NMPP Energy’s website on the “Grant Opportunities” section.
Amendments to bylaws
Amendments to the NPGA bylaws were approved which simplify and modernize language related to the Net Asset Value Account (NAVA). A super majority vote of two-thirds is required for this type of change.
Pipeline rate case updates
An update was provided to the Board regarding pipeline rate cases involving Northern Natural Gas Pipeline, Tallgrass Interstate Gas Transmission Pipeline as well as possible tariff changes regarding Southern Star Central Gas Pipeline.
The next NPGA Board meeting is scheduled for early December.