Natural Gas 2015 - 2016

ACES Natural Gas Program renewed.

In late 2014, ACES completed its latest, successful competitive electronic bid process for natural gas supply, resulting in the award of 21-month contract to third party suppliers that run until December 2016. The contracts provide cost savings and budget stability for over 2,000 individual gas accounts covering 362 participating ACES member districts, across all 21 counties from Sussex to Cape May.  Specifically, leveraging ACES’ buying power the 21-month contracts lock in the cost of pipeline capacity costs at an estimated saving to participating districts totaling about $10 million over the contract term as compared to the cost of interstate pipeline capacity embedded in gas utility supply tariffs.  

In addition, ACES employs a strategy of gradually and strategically hedging gas commodity costs, taking advantage of market dips, to build a portfolio of locked-in commodity prices that provides participating members budget certainty and protection against market spikes, such as occurred during the 2014 polar vortex.


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