The Great Falls Public Schools board approved a new natural gas contract with Summit during their May 26 meeting.

The district has historically contracted directly with a natural gas company, with assistance from Jim Morin, an energy consultant for GFPS and the City of Great Falls. Long-term contracts allow the district to limit budget changes due to market fluctuations and minimize costs, according to GFPS.

The district’s current contract expires June 30 with EnergyWest, and since the company was acquired by NorthWestern Energy, the district didn’t have the option to renew.

Luke Diekhans, GFPS’ business operations manager, told the board that some concerns for natural gas include limitations in transmission systems since most of the supply is coming from Canada.

A piece they can’t predict, Diekhans said, over the next three to five years is the impact of data centers, since they’re using natural gas to speed development.

The district issued a request for proposals on April 28, with bids due May 26 for service to begin July 1.

GFPS approves blended energy contract [2025]

The district must give 30 days notice to its current supplier, Diekhans said in late April.

Morin, the district’s energy consultant who also consults for the City of Great Falls, told the board in April that when NWE purchased EnergyWest, the company hadn’t decided if it would offer third-party natural gas supply, but has since opted not to do so.

NWE sold the non-regulated portion to Jefferson Energy Trading out of Whitehall, Morin said, with service continuing through June 30, “so really, the district had no choice but to go out for an RFP.”

City extending natural gas contract [2023]

He said that natural gas rates will rise over the next few years, but not significantly.

Over the last three years, the average commodity gas price was $1.49, excluding other associated costs like transmission.

The market forecast for the next three years is an average price of $1.66, he said.

The district requested pricing in the RFP for one, two or three-year contracts for consideration.

The board approved a three-year contract for $$6.88 per unit the first year; $7.11 the second year and $7.26 the third year.

The estimated cost to the district is $632,960 the first year; $654,120 the second and $667,920 the third.