LAS Electricity Program Fixed Hedge Secured
For the 145 municipalities involved in the LAS Electricity Program, we are pleased to announce LAS has secured a fixed hedge at a rate of $50.21/MW including fees or 5.02 ¢/kWh for the 12-month term commencing January 1, 2024 – December 31, 2024.
LAS is committed to providing the best 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 small changes to forecasts in weather, world events, and supply and demand can cause big changes to market pricing.
In 2023, staff worked with our suppliers to monitor the market for pricing changes to determine the appropriate time to purchase a hedge. In Ontario, natural gas plays a role in the mix of electricity sources.
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 traditionally lower cost options than 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.
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