TERRE HAUTE —
In an effort to save on natural gas expenses, the Vigo County Board of Commissioners is considering a contract with an Indianapolis-based energy marketing company.
ProLiance Energy LLC is a full-service natural gas marketing company that provides natural gas supply and management to commercial, industrial and wholesale customers. ProLiance contracts for supply with more than 60 counterparts across 14 interstate pipelines, five intrastate pipelines and multiple local distribution companies, including Vectren Energy Delivery.
County Attorney Michael Wright said Tuesday that ProLiance receives its payments from savings it can generate for the county.
“It is similar to what we have done with the [gasoline] fuel budgeting program. The difference is the Indiana Bond Bank has a fee that the county pays regardless if their guess on prices was right or not. If this company cannot lock in the rate, there is no charge, but if they do effectuate a savings, they take a portion,” Wright said.
The company estimates Vigo County could have saved $8,255 for the county courthouse from September 2011 through August 2012 and saved $9,783 on the county annex building during the same time, each of which represents a more than 28-percent cost savings.
ProLiance would have earned more than $20,000 during that time, Wright said.
Commissioner President Michael Ciolli asked how the county would get out of the contract should it not find it saving money. Wright said the contract is for one year and automatically renews; however, the county, with a written notice, can opt out of the service before the start of a new contract year.
Ciolli said commissioners have checked with Monroe and Hendricks counties, both of which use the service. “It looks like they are getting a savings, yet they have just been on the program for seven months. But the difference is the profits for ProLiance are based on them getting [those counties] a savings,” Ciolli added.
Commissioners signed an agreement with Vectren to have ProLiance Energy be the county’s natural gas manager. Ciolli said that contract was needed to allow the county to obtain savings from ProLiance by November.
Commissioners next week will address a contract with ProLiance Energy. Commissioner Judith Anderson was at a state commissioners’ association meeting and was not present at the board’s Tuesday meeting.
“We hope we can get some savings through the winter with this,” Ciolli said.
Reporter Howard Greninger can be reached at 812-231-4204 or howard.greninger@tribstar.com.
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