Mineola to Rebid Natural Gas Contract

The Village of Mineola will be rebidding a contract for natural gas for residents as part of the Nassau County Village Officials Association discounted gas program after the anticipated savings failed to materialize.

“Those savings may not be there now as gas prices have fluctuated,” Mineola Village Clerk Joseph Scalero said during a meeting of the village board on May 1 at the village hall.

About 3 years ago, the village was approached by the Nassau County Village Officials Association and asked to issue a cooperative bid for gas pricing alternatives, which was being done throughout the county in which all member villages could participate and which would provide an opportunity for residents and businesses to receive lower cost natural gas from individual dealers delivered through National Grid or Keyspan.

Through ESCOs (Energy and Supply Companies) – private gas providers which under federal law are allowed to sell directly to consumers at a lower cost and who are able to carry through National Grid lines – the village was able to contract with East Coast Gas to provide a flat 8 percent discount to Mineola residents over National Grid. 

Many Mineola residents opted into the resulting bid and had considerable savings. The village officials association recently contacted Mayor Strauss, notifying the village that the one-year contract had expired, but the company was still honoring the existing pricing structure.

However, due to the economy and certain tariffs passed along through National Grid, the company has sent notice that without a new contract they may not be able to offer the same pricing for much longer without renegotiation. The Village Official’s Association asked Mineola to issue the bid again since it took the lead with the original bid.

The contract had expired and a new bid was issued but only two companies submitted bids and neither resulted in significant savings. Scalero stated that one company’s prices were tied to market fluctuations.

The Village Officials Association has asked Mineola to reissue the bid since they have solicited a number of alternative companies to bid on the contract.

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