Cookeville Council To Vote On Extension Of Natural Gas Agreement

Cookeville City Council will vote Thursday night to extend its natural gas contract, with the hope of saving the city and customers hundreds of thousands of dollars.

The city first signed a 30-year contract with the Municipal Energy Acquisition Corporation and Southeast Gas Supply in 1998. Cookeville City Manager James Mills said the two companies work as a cooperative to issue bonds to buy gas. Mills said the city has saved some $3 million since it began working with the cooperative in 1998. Mills said Cookeville was one of the founding members of the group.

“This group, this co-op was put together specifically by the city of Cookeville and several other gas utilities in Tennessee for the purpose of increased buying power and to get lower costs for our customers and it’s worked,” Mills said.

Mills said the proposed extension would add five-and-a-half years to the agreement. Mills said the city’s willingness to remain under contract gives the cooperative negotiating power with other utilities.

Over the past year, the city has saved some $160,000 and has been refunded some $70,000. The Cooperation has asked that the city lengthen the agreement. Mills said he believes it would be a good move.

Mills said there was extensive discussion when the council considered extending it from 12 to 30 years in 2018, but it has been a good thing for the city.