Patterson seeks new deal for gas customers

PATTERSON — City Council members approved a resolution Tuesday authorizing Mayor Rodney Grogan to execute a contract with Louisiana Municipal Natural Gas Purchasing and Distribution.

The resolution indicates the intention of the city of Patterson to become a participating political subdivision in the Louisiana Municipal Natural Gas Purchasing and Distribution Authority.

Gas rates are expected to increase by 2 to 3 percent per year over a five-year period. Before the Louisiana Gas Authority resolution, residents could have seen an increase as high as 10 percent over that same time period, Grogan said.

With this change, the city will save approximately $43,000 the first year, said Louisiana Municipal Gas Authority representative Kevin Drone.

The last time the council voted to increase the gas rate was in 1995.

Berwick, Morgan City and Baldwin also participate in Louisiana Municipal Gas authority.

Drone provided the council with the benefits of being a member at the meeting.

If the city adopts the resolution, the gas authority would:

—Act as gas supply agent.

—Administer its members’ existing contracts with gas suppliers and pipeline companies.

—Purchase all natural gas supply requirements.

—Manage transportation to deliver gas.

—Monitor and participate in federal and state energy regulatory matters on behalf of the members.

—Represent members and lobby on their behalf, both federal and state regulatory bodies.

—Perform rate design studies at no cost.

—Offer a winter month hedging program.

—Present workshops to educate on various issues.

The Louisiana Municipal Gas Authority provides natural gas management services to 72 public entities in the state.

At present, it serves its members on 11 pipeline systems, one of which is Louisiana Interstate Gas.

Within the parameters of the resolution, the council approved the appointments of Grogan to serve as director of the authority and Terry Space to serve as an alternate in the absence of Grogan.

The term of service would be two years for Grogan once the resolution is approved in its final adoption stages. The reason for two years is so it would remain within Grogan’s current term as mayor.

Once the resolution goes through, a public hearing is held and final action is taken by the council. The change could go into effect by July 1, Grogan said.