Toronto, Ontario, June 21, 2007 – A group of 25 Ontario municipalities have banded together to achieve more advantageous electricity rates and terms through joint purchasing.

Working through a program offered by Local Authority Services Ltd. (LAS), a subsidiary of the Association of Municipalities of Ontario (AMO), the group has purchased electricity supply in advance of Provincial changes that will reform Ontario’s regulated electricity market in early 2008.  
 
“The end of price regulations is going to have a huge impact on the municipal sector,” said Kim Dooling, Manager of Purchasing and Risk Management for the Town of Oakville.  “It’s important to get ahead of the curve and have a reliable plan in place before that happens.”

“Bulk purchasing is an effective way to create predictability and manage costs,” said Nancy Plumridge, President of AMO’s Local Authority Services.  “LAS has been bulk purchasing natural gas since 1992, saving participating municipalities more than $17 million in the last five years alone.”  

In addition to greater stability and group rates, the AMO/LAS Electricity Procurement Program allows municipalities to take advantage of ‘off-peak’ spot market pricing, which will save municipalities approximately 2 cents per kilowatt on average for their street lighting.
 
“I think this is the right way to approach the transition to the electricity market,” said Linda McNaughton, Director of Corporate Services/Treasurer for the City of Dryden.  “Working together to plan for the future, municipalities are on a much stronger footing and have greater control over costs.”

AMO/LAS continues to enrol new program members and expects to take a second group to market in the late summer or early fall of 2007.  

LAS is a subsidiary of AMO.  Its mandate is to work with municipalities and Ontario's broader public sector to reduce the cost of their expenditures and increase revenues through the principles of economies-of-scale and co-operative procurement efforts.
 
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