LAS Commodity - Electricity and Natural Gas - Program Updates for 2026

December 04, 2025

LAS has long worked to support predictable energy commodity prices for Ontario municipalities.

Our Electricity Program provides Ontario municipalities with predictable electricity commodity costs through a professionally administered program that leverages both aggregated purchases and spot market exposure.

Municipalities are also able to stabilize their natural gas rates through the LAS Natural Gas Program, which has provided Ontario municipalities and members of the broader public sector with consistent and predictable natural gas prices for 30 years.

Natural Gas Program Rate Change

The new LAS price for the November 2025 - October 2026 period is 13.8 cents/m3.

The new LAS price represents a 1.5% price reduction and is expected to be competitive with overall 2026 utility gas rates. LAS members are also protected against any upward movement in the market, with the stability that an annual commodity rate offers.

For the November 2025 contract year, LAS has also secured much of its deregulated transportation obligations.

Electricity Program Price Announcement

For the 137 municipalities involved in the LAS Electricity Program, we have secured a fixed hedge at a rate of 8.61 ¢/kWh, including fees, for the 12-month term from January - December 2026.

LAS is committed to providing good options for our members and we are confident the approach and timing of the hedge was appropriate based on the various factors impacting electricity prices as changes to forecasts in weather, and supply and demand can cause big changes to market prices. While there is an increase in the energy price for 2026, it is anticipated (based on 2025 actuals) that other items captured in the Global Adjustment (GA) will be lower, resulting in a moderated overall energy commodity cost.

Hedging provides LAS program members budget stability with a set price for the set portion of consumption. Hedging in combination with access to spot market pricing along with the GA are expected to be comparable or lower cost options than Time of Use (TOU) rates.

Program members also continue to benefit from low-cost off-peak access to spot market pricing for their streetlight accounts, which often creates a savings opportunity.

Increasing energy prices emphasize the importance of conservation. LAS also has several programs municipalities could access, such as energy efficiency training, facility lighting conversion to LED, and an energy planning tool.