AMO Municipalities Embrace Bulk Purchasing of Electricity

    TORONTO, June 21 /CNW/ - A group of 25 Ontario municipalities have banded
together to achieve more advantageous electricity rates and terms through
joint purchasing. Working through a program offered by Local Authority
Services Ltd. (LAS), a subsidiary of the Association of Municipalities of
Ontario (AMO), the group has purchased electricity supply in advance of
Provincial changes that will reform Ontario's regulated electricity market in
early 2008.
    "The end of price regulations is going to have a huge impact on the
municipal sector," said Kim Dooling, Manager of Purchasing and Risk Management
for the Town of Oakville. "It's important to get ahead of the curve and have a
reliable plan in place before that happens."
    "Bulk purchasing is an effective way to create predictability and manage
costs," said Nancy Plumridge, President of AMO's Local Authority Services.
"LAS has been bulk purchasing natural gas since 1992, saving participating
municipalities more than $17 million in the last five years alone."
    In addition to greater stability and group rates, the AMO/LAS Electricity
Procurement Program allows municipalities to take advantage of 'off-peak' spot
market pricing, which will save municipalities approximately 2 cents per
kilowatt on average for their street lighting.
    "I think this is the right way to approach the transition to the
electricity market," said Linda McNaughton, Director of Corporate
Services/Treasurer for the City of Dryden. "Working together to plan for the
future, municipalities are on a much stronger footing and have greater control
over costs."
    AMO/LAS continues to enrol new program members and expects to take a
second group to market in the late summer or early fall of 2007.
    LAS is a subsidiary of AMO. Its mandate is to work with municipalities
and Ontario's broader public sector to reduce the cost of their expenditures
and increase revenues through the principles of economies-of-scale and
co-operative procurement efforts.

For further information:

For further information: Nancy Plumridge, President of AMO's Local
Authority Services, (416) 971-9856, ext. 320; Brian Lambie, AMO Media Contact,
(416) 729-5425

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