Strathmore supply agreement exceeds expectations

Miriam Ostermann
Times Associate Editor

 

Amid expectations of saving thousands of dollars in electricity and natural gas bills, town administration experienced an even more favourable outcome when their supply agreements showed skyrocketing savings.
The Town of Strathmore entered into the agreements – effective in early 2014 – with the expec-tation of saving roughly $334,000 annually. Council was therefore delighted on May 20, when their administration advised them of savings greater than 50 per cent on the natural gas commod-ity and over $30 megawatt hour savings on electricity.
“The town entered into supply agreements for the purchase of electricity and natural gas that started in the beginning of 2014 and at the time we estimated there would be savings in the area of $334,000,” said Mel Tiede, director of corporate services at the Town of Strathmore. “A 54 per cent saving on the purchase of natural gas commodity and a $34.90 MKh savings on electric-ity were realized over the prior purchase arrangements through AUMA.”
The report states that the town only spent $1.092 million on the cost of commodities for 2014, as opposed to the $1.531 million the year previously. While the transmission, distribution, and other charges on the billings remained as authorized by the regulating authority, council noticed a re-duction of $439,000.
“This is certainly a good-news story,” said Councillor Bob Sobol. “This is serious money. $439,000 dollars equals 4.5 percent on our tax rate. It’s a substantial savings.”
According to last year’s accounting records, the town allocated most of their money to road lighting, which had the highest annual electrical use of $405,000. The sanitary sewer plant and lift stations followed behind with $170,000, while the Family Centre required $114,000 of elec-tricity to operate.
In terms of the highest natural gas expenditures, the town spent $64,000 on the Aquatic Centre, $35,000 on the Family Centre, $23,000 on the sanitary sewer plant, and $20,000 on the Civic Centre.
Town council accepted the report as information.