LAS Commodity (Electricity and Natural Gas) Program Updates

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 purchasing 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 2024 - October 2025 period will be 14 cents/m3.

This price is 2.9% higher than the current LAS rate, but still competitive with overall 2024 utility gas market rates. With the LAS approach the 160+ program members are protected against any further upward movement in the market, with the benefit of the stability that an annual commodity rate offers. 

For the November 2024 contract year, LAS has also secured its deregulated transportation obligations. Based on the transactions completed, members can expect to see a small year-over-year decrease in their transportation rates.

Electricity Program Price Announcement

For the 140 municipalities involved in the LAS Electricity Program, we have secured a fixed hedge at a rate of 5.85 ¢/kWh, including fees, for the 12-month term commencing January - December 2025.

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.

Hedging provides LAS program members budget stability with a fixed price for the set portion of consumption. LAS’ approach of hedging, in combination with access to spot market pricing, often provides a lower cost option than prevailing government 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.

Contact us to learn more.