With municipal finances under continued strain, local government managers are seeking innovative ways to maximize revenues and stabilize budgets. Several municipalities are discovering significant benefits through municipal consortiums that allow them to achieve competitive terms for a variety of supplies and services. One area that still offers advantage is the opportunity to negotiate lower natural gas prices by group purchasing as part of a consortium.
Topics: Natural Gas Costs
Some municipalities may shy away from the idea of independent natural gas purchasing because of the perceived benefits of bartering rights-of-way-compensation for free gas. They may also be put off by the supposed risks of moving away from what may be perceived to be a fixed-price agreement with a utility provider but is typically pegged to the market price offered at that time by the franchisee.
Topics: Natural Gas Costs