Farmington is considering a plan to join the New Mexico Municipal Energy Acquisition Authority, which was formed earlier this year by Gallup and Las Cruces. Joining the authority would allow the city to issue tax-exempt bonds and use the proceeds to purchase natural gas under a multiyear contract.
Officials in the northern New Mexico city said they want to ensure that joining the authority would not hinder their abilities to issue bonds for other purposes, and that Farmington would benefit by borrowing money to purchase the natural gas.
The city uses the gas to generate electricity and does not distribute it to retail customers.
City manager Rob Mayes said a preliminary analysis indicated Farmington would save about $11,000 a day with the pre-pay arrangement, or about $4 million a year.
A decision by the City Council is expected in August.
