Town saves thousands on utilities

Times Reporter 

 

At the end of this year the current contract arrangement for electricity and natural gas with AMSC will expire. Back in May council authorized administration to engage the services of Energy Associates Inc. to provide consulting services and work with them towards the purchase of electricity and natural gas in the upcoming year.

A Request For Proposal (RFP) was completed for both, separately. The RFP for electricity closed on July 3, and natural gas just closed on Oct. 16. 

“For the supply of electricity and natural gas proposals were received and for natural gas for a three year term the prices ranged from  $3.78 to $3.91 per gigajoule,” said Mel Tiede, director of corporate services for the town.

The town currently is paying $8.33 per gigajoule. 

“Based on an average year’s usage the town will achieve an annual cost reduction of $119,000 compared to the current contractual rate,” said Tiede. 

The savings for electricity were $.0349 cents per kilowatt-hours, which will save the town an estimated $215,000, bringing a combined savings to the town of approximately $334,000. 

Tiede says it will be a savings for all property tax payers, including homeowners. The savings in electricity and natural gas is one factor of many that are contained within the town budget, said Tiede.

The new contracts, which will commence Jan. 1, 2014 are with Access Gas for natural gas services and with Enmax for electricity. Access Gas is widely used in the province, and both have been used by a number of other companies and were recommended by the consultant.