Illinois Municipal Electric Agency

IPEA Gas Management Services

IPEA manages supply, purchasing and hedging operations for its members, through a contract with ProLiance Energy.

Discount to Index Program

In addition to traditional fixed price hedges, IPEA offers member cities a discount-to-index program, which allows members the option to hedge a specific portion of their annual volumes and receive a discount on the index price. Members can “collar their costs,” meaning they can set a ceiling and floor price for the summer and a ceiling and floor price for the winter, which will then yield a discount. Or, members can request a specific discount, then work with IPEA and ProLiance to determine the ceiling and floor prices to yield that discount.

In fiscal year 2012-13, participating members saw significant discounts on their delivered cost of gas, with total cost reductions amounting to tens of thousands of dollars.

The program is optional and available for summer periods, winter periods or both.

Related Financial Services

IPEA provides all management services related to the operation of the Agency, including accounting functions and the procurement of an independent auditing firm.

National Association Representation

IPEA staff member Doc Mueller also has serves on the Board of Directors of the American Public Gas Association. The affiliation allows IPEA’s concerns to be heard on a national level and also provides a pathway to educational opportunities for IPEA and its member municipalities.