Tuesday, July 08, 2008

City Claims Savings From Hedging Fuel Purchases

Under an energy risk management agreement with KeyBank the City of Indianapolis has been able to achieve monthly savings on its latest fuel purchases of nearly $40,000. Hedging has allowed the City to purchase 43% of the fuel for its fleet services at $3.22 a gallon and the remaining 57% between $3.12 and $3.35 a gallon. Fuel prices at the pump are now topping $4 a gallon. A press release from Mayor Greg Ballard's office says the previous administration allowed the fuel hedge program to expire in December, which exposed the City to increased fuel costs of between $4-$5 million this year. The new administration subsequently reinstated the program to take advantage of the savings.


Bart Lies said...

IMPD evidently has some or all officers buying gas at Speedway.

Scanner traffic I heard over the weekend mentioned a "$35 limit" whenever they are getting gas there. I was surprised they filled up anywhere except the city gas pumps.

Maybe that's just emergency buying if you are in the boonies and running on fumes?

Concerned Taxpayer said...

It is to keep from the officer's losing 30-60 minutes driving to a city fueling spot.

artfuggins said...

Ballard said he could save $70 million by making little cuts here and there. Of course, the governor has bailed him out on the pension and DOC bill for juveniles......let him start making calls.

Bulldog said...

Of course the Peterson administration let the contract expire. If they had entered into a contract for 2008, folks would have screamed about them tying the hands of the new administration and complained that they didn't get a good enough deal. Come on, be fair.

Also - a little update from the Wash. Twp. Mayor's night out last night. Want to know Ballard's stance on light rain to the NE cooridor?

"The people that moved to Fishers did so knowing that it is a mess (yes, you have it right, he publically dissed a neighboring town)...do you think those people are going to get on a train..I don't think so, so we're not going to waste money on light rail to Fishers."

I bet the Fishers Town Council would not be too appreciative of Mr. Ballard's opinion regarding their town or their future. He shouldn't expect alot of campaign donations from the Hamilton County Republican Party.

True Conservative said...

bulldog; I don't get it. Why should Marion county tax payers pay for a transportation systems for other counties? I think light rail is a great idea and that private industry should pay for it. We are in the tax situation we are currently because everyone thinks government should fulfill their every need.

Lord Peter said...

It is true that Indy's interest in funding light rail to help people who live in Hamilton County is kind of unclear.

On the other hand, having private industry pay for light rail doesn't make any sense - it's not like private industry pays for roads.