Marshall Accepts 2027-28 IPEA Gas Addendum With $1.3 Million Guaranty

Marshall City Council | October 12, 2026

Article Summary: The Marshall City Council on Monday, Oct. 12, 2026, unanimously accepted the 2027 Member Addendum B-3 with the Illinois Public Energy Agency and Constellation NewEnergy – Gas Division, LLC, committing the city to buy 100% of its natural gas requirements through the agency for the year beginning April 1, 2027, under a document that also requires a payment guaranty capped at $1.3 million.

IPEA Gas Addendum Key Points:

• The addendum runs April 1, 2027 through March 31, 2028, with annual usage estimated at 236,072 MMBtu and a maximum daily quantity of 3,550 MMBtu at the delivery point.
• The city has elected index pricing for the full term, tied to published Platts indexes plus a $0.04 per MMBtu seller margin.
• A guaranty attached as Exhibit B caps the city’s maximum liability at $1,300,000.00 and revokes all prior guaranties effective 11:59 p.m. Central time on March 31, 2027.
• The city designates the seller as its agent for pipeline nominations, dispatch and payment of bills.

MARSHALL — The Marshall City Council on Monday, Oct. 12, 2026, voted unanimously to accept the “2027 Member Addendum B-3 – City of Marshall, Illinois,” locking in the terms under which the city will buy natural gas for the 12 months beginning more than five months after the vote.

The motion was made by Alderman Michael Smitley and seconded by Alderman Warren LeFever. All council members were present and all voted in favor, according to the minutes, which record no discussion of the item.

The addendum is a three-party document among the Illinois Public Energy Agency, identified in the text as “IPEA” or “Buyer”; Constellation NewEnergy – Gas Division, LLC, identified as “Seller” or “CNEG”; and the City of Marshall, identified as “Member.”

How the Purchase Is Structured

The addendum sits beneath an existing umbrella contract. Its recitals state that the buyer and seller entered into an “IPEA Gas Sales Management and Agency Fourth Master Agreement” for the sale and purchase of natural gas effective April 1, 2018, as amended effective April 1, 2023. The addendum records that Marshall “is in good standing with the IPEA and desires to meet all of its natural gas needs through the IPEA,” and binds the city to abide by the terms of that master agreement.

Under Section 2, the maximum daily quantity the seller is obligated to deliver on a firm basis at the delivery point is 3,550 MMBtu per day. Section 5 provides that the seller will manage 100% of the city’s individual requirements, including storage activities if any, with annual usage estimated at 236,072 MMBtu.

The document also publishes a month-by-month forecast of the city’s anticipated usage, which ranges from a summer low of 4,413 MMBtu in July to a winter peak of 48,408 MMBtu in January. The other months are listed as February 39,888; March 28,314; April 16,416; May 7,641; June 4,574; August 4,689; September 5,166; October 11,696; November 26,901; and December 37,967.

Gas reaches the city through two pipelines named in a receipt and delivery table. One row lists pipeline TGP under rate schedule FT-GS, contract number 97841, with a receipt point of TGP Zone 0, a delivery point of TGP Portland and a maximum daily quantity of 3,000. The second lists pipeline MGT under FT-GS, contract number FG0004, with a receipt point of MGT Portland, a delivery point of “Marshall Meter” and a maximum daily quantity of 3,550. Section 4 identifies the delivery point as the Midwestern Gas Transmission “Marshall city gate.”

Pricing, Agency and the Guaranty

Section 6g records that the city “has elected Index Pricing for the period April 1, 2027 through March 31, 2028.” Index pricing, generally, ties the commodity price to a published market index rather than fixing it in advance. The price table sets the monthly index for the MGT Portland receipt point as “Platts Inside FERC Gas Market Report Tennessee 500L minus $0.125 Market Based Adjustment plus $0.04 margin,” and the daily index for excess gas and undertakes as “Platts Gas Daily Tennessee 500Leg plus $0.025 Market Based Adjustment plus $0.04 margin,” with a $0.02 reduction for undertakes. Price locks may be taken for a minimum of 12 months at a time, and the seller must present options 60 days before the end of the initial pricing term.

Under Section 10, the city designates IPEA and CNEG as its agent “for all functions including nominations, dispatch, and payment of bills” with its pipeline transporter.

The largest single figure in the document is in Exhibit B, a guaranty of payment in favor of Constellation NewEnergy – Gas Division, LLC. Section Three of that guaranty limits the maximum liability of the city as guarantor to “One Million Three Hundred Thousand and 00/100 ($1,300,000.00),” reduced dollar for dollar by any payment made under it, and states that the guaranty “is strictly limited to the Member named herein” and guarantees no other IPEA member. Section D of its recitals revokes every prior guaranty of payment the city has executed for the agency, effective 11:59 p.m. Central time on March 31, 2027. Section 8 of the addendum itself requires the city to execute that guaranty “prior to receipt of any gas.”

The copy of the addendum circulated with the agenda is unexecuted — the signature, printed name, title and date lines for all three parties are blank, as are those on the guaranty. Whether the council’s motion also authorized execution of the guaranty is not stated in the minutes.

Correspondence and invoices for the city are to be directed to “Attn: Cory Sheehy, Utilities” at 201 South Michigan Ave., P.O. Box 298, Marshall, according to Exhibit A. The city’s gas operations are carried in a Gas Utility Fund, which in the same meeting’s payment report accounted for $62,374.41 in invoices.