Municipality Negotiating Natural Gas Purchasing Agreement

·1 min read

The Alberta Municipal Services Corporation (AMSC) is offering its members the opportunity to take part in their upcoming aggregation procurement of natural gas. The AMSC offers a range of business services and commodities, including energy, to municipalities across the province. The AMSC can offer these services and commodities at very competitive rates as they leverage the massive buying power of the group of municipalities that they represent. Buying services and commodities at this scale allows AMSC to negotiate contracts and prices that would not be available to individual consumers or smaller business entities. The service and commodity providers also benefit significantly from the volume of sales inherent in these agreements.

The Town of Swan Hills is currently in a contract that guarantees a low, stable natural gas price for its municipal buildings and facilities until Dec. 31, 2022. AMSC is seeking permission to begin the process of brokering a new natural gas agreement that would guarantee a locked-in rate from Jan. 1, 2023, until Dec. 31, 2026. While the current prices for natural gas are favourable, the prevailing projections for the market forecast an increase in the price of this commodity.

The ability to lock in a lower price for natural gas during this contract period provides stability regarding the budgets of the member municipalities, without the worry of market fluctuations upending their financial planning efforts. The long-term cost savings to the municipalities that participate in this program will be significant. The Town of Swan Hills also participates in a similar program for the aggregation procurement of electrical power.

Dean LaBerge, Local Journalism Initiative Reporter, Grizzly Gazette