City of Waterloo Gas Committee met March 2.
Here are the minutes provided by the committee:
Attendance: Chairman Matt Buettner
Committee Members: Jim Hopkins, Jim Trantham, Tina Charron, and Gary Most.
Attendees: Mayor Stan Darter, J.R. Landeck, Nathan Krebel, Joel Vogt, Jordon Riley, Kyle Buettner, Ron Ragan (via Zoom), and Mechelle Childers.
Meeting called to order at 6:31 PM.
Agenda Item 1: Petitions by Citizens on Non-Agenda Items: None
Agenda Item 2: Long-Term Gas Purchase Program.
Ron Ragan of Utility Gas Management (UMG) attended the meeting virtually to provide clarification and present information regarding the Long-Term Discount Program, as well as to answer any questions. The meeting is for informational purposes only, and no vote will be taken. There is a long-term discount program that provides a discount on all-natural gas placed into the program, which typically accounts for 70% of a city’s gas supply. Waterloo would be eligible to join the new program beginning August 1, 2026. Currently, the program provides a 35-cent discount. If all of the allocated gas volume cannot be used, the unused portion can be transferred to other qualified parties or communities that need it. Internal Revenue Service regulations require that 95% of the gas volume be used by qualified participants, allowing up to 5% to be allocated to non-qualified participants or other users on the Mississippi River Transmission system. Although the program is structured as a bond program, the City itself is not required to issue bonds. The bonds are issued based on future gas sales, which fund the discount provided through the program. There are currently 82 participants in the program across several states, with 22 additional participants scheduled to join in August. Ron Ragan offered to provide contact information and references upon request. The discount will appear on the City’s monthly invoice each month. At the end of the one-year rebate period, a check is issued for any remaining discount amount. The rebate period runs from August through July. The City may use the rebate funds at its discretion. Participation requires entering into a multipage contract, approximately 72 pages in length, which outlines the gas volume, contract term, and discount amount. The program also includes the opportunity to hedge gas volumes as part of the agreement. The discount applies regardless of how the gas is purchased, whether at the index price, fixed price, or another purchasing mechanism. Citizens may also purchase the bonds on the open market. The bond rate is fixed for the duration of the term and does not fluctuate. However, if the minimum discount for a future term is not met, participants have the option to opt out of the program. There is no direct cost to participate in the program. Typically, the bonds are placed by Goldman Sachs. Ron Ragan recommended contacting existing participants to confirm their experiences with the program. Alderman Most asked if an estimated discount amount could be provided for the city. Based on an estimated annual volume of 184,455 units and using a 35-cent discount, the potential rebate would be approximately $64,000 per year. UMG is looking to fund the program as early as the first or second week of April. Ron stated that he will provide the city with an updated resolution and a list of all current participants, including their rebate amounts and contact information. The city will continue discussions and make a determination regarding participation at the March 16, 2026, City Council meeting
Agenda Item 3: PEFA, Inc. Agreement.Â
The Public Energy Facilities Authority (PEFA) agreement accompanies the agreement with Utility Gas Management (UMG). No vote is being requested this evening. If the City chooses to approve the program, it could be enacted next month, with the program beginning on August 01, 2026. While the program does not restrict how the rebate funds must be used, the City intends for all proceeds to be returned to the gas account. As a reminder, the program provides a monthly refund reflected on invoices, along with an annual true-up refund issued as a check at the end of the rebate period.
Agenda Item 4: Comments. None.
The motion to adjourn the meeting was made by Alderman Most and seconded by Alderman Hopkins.
Motion passed by a unanimous voice vote.
The meeting was adjourned at 7:00 PM.
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