Natural Gas Procurement
|Stabilize your Natural Gas Rates - For more than 20 years, the LAS Natural Gas Program has provided Ontario municipalities and members of the broader public sector with consistent and predictable natural gas prices. Leveraging the commodity management expertise of Edison Energy, this program follows a four-year natural gas hedging strategy that offers budget stability by making use of aggregated program tenders, and a combination of fixed and indexed pricing contracts. Each LAS program year starts on November 1 and concludes on October 31 of the next year.||
YOUR 2021 PRICE IS
- Budget Stability: Utility rates can change up to four times a year, making budgeting for your natural gas unpredictable. LAS offers a commodity price that is fixed for 365 days a year, allowing you to confidently budget for your natural gas commodity.
- Maximized Purchasing Power: By combining natural gas requirements for each program member, LAS is able to leverage economies-of-scale through aggregated tenders to get the best price possible for each purchase.
- Periodic Program Rebates: Following an annual review of the program and based on the health of the program’s reserve fund, LAS will often provide rebates to program members based on the difference of the forecast price at the beginning of a program year and the actual price at the end of the year. Rebates are based on an individual member’s usage as a percent of the total program volume.
LAS purchases incremental gas contracts at various points each year through our program agent, Edison Energy, with a goal of building a total hedge portfolio of 80-90% of program requirements for the current gas year, with remaining consumption settling at prevailing market rates. This approach ensures that LAS can provide competitive pricing to members and guarantees the program rate for one-year intervals.
Program fees cover administrative and legal costs as well as Edison Energy’s professional program management and reporting services.
- Administration fee is $0.10/GJ. This fee is included in the ABC price that appears on your utility bill
- There are no additional fees for LAS program members to pay
Edison Energy has the capability and experience to simplify natural gas contract management for LAS clients. Operating in Canada as Delta (Perimeter) Energy, LAS has worked with Edison Energy for more than 10 years to deliver this valuable program to Ontario municipalities.
For further information, please contact Fernanda Lazzaro, Customer Service Representative, 416.971.9856 x369.
The LAS Program has provided the City of Pickering a sound commodity hedging strategy for natural gas, which benefits us as much as possible from falling market prices and protects us as much as possible when prices are rising. Excellent program administration utilizing industry experts also provides a reliable gas supply with the price benefits of bulk procurement.
Bob Kuzma, Senior Purchasing Analyst, City of Pickering
The County has been part of the LAS NG program since its inception. The service provided by LAS staff has been excellent and the program is explained and presented in a concise format that is easy to understand and to present to staff and Council.
Mark Bolzon, Manager, Purchasing & Risk Management Services, County of Wellington