Town council authorized the signing of electricity and gas contracts for town-owned buildings at a special council meeting on Dec. 2.
The town currently has five-year contracts for the supply of natural gas and electricity with the Alberta Municipal Services Corporation (AMSC), which brokers energy supplies for the town from energy providers.
Council has decided to extend the town's contract for natural gas with the AMSC from Jan. 1, 2014, to Dec. 31, 2018.
The town's current natural gas supplier is TransAlta, but the AMSC has not yet determined which company will provide natural gas to the town for the 2014-to-2018 contract.
Council also decided not to renew its electricity supply contract with the AMSC that expires on Dec. 31 and instead authorized town staff to sign an electricity supply contract with TransCanada Energy.
The term of the contract is from Jan. 1, 2014, to Dec. 31, 2018.
Town staff had approached Mountain View Power, which is owned by the Olds Institute for Community and Regional Development, for the town's electricity supply needs but determined the town is too large a client for the small company.
According to a town staff report, however, Mountain View Power arranged for the town to enter into a contract with TransCanada and if the contract is signed, Mountain View Power will receive an administration fee as part of the contract.
Norm McInnis, the town's chief administrative officer, said the electricity option was a good one for the town since it could support Mountain View Power.
He explained that until recently, Mountain View Power couldn't service accounts using more than 250 megawatt hours per year. The town uses about 900 megawatt hours per year for its facilities.
McInnis said he expects the new electricity contract will allow price stability for the town. He said under the current contract the town is subject to price shocks because it follows the market and pays anywhere from $61.80 to $68.80 per megawatt hour. Under the new contract the town was quoted a price of $59.25 per megawatt hour for a five-year contract.
“It looks as though this pricing from TransCanada is going to be very good pricing for us,” McInnis said in an interview. “This price is load following, so we pay the same price whatever the market is.”
