Based on the level of risk involved and the “dubious information” LAS has provided in the past, Puslinch councillor Matthew Bulmer said the township should pass on an electricity agreement with the company.
LAS (or Local Authority Services Ltd.) is a subsidiary company of the Association of Municipalities of Ontario (AMO) that offers several services to AMO members, including an electricity procurement program.
According to LAS, that program allows governments “to ensure predictable costs” for electricity through a program that “leverages aggregated purchasing and spot market exposure.”
But Bulmer said for a municipality of Puslinch’s size, the program makes little sense.
“We’re being asked to take on a fair amount of risk,” he said, noting the township shares responsibility “if someone doesn’t pay the bill” – and there is no way to recover that money.
Bulmer explained the township owns “multiple small accounts,” including tennis courts, ball diamonds, and other facilities. Many of those are seasonal operations, but under the LAS agreement would nonetheless come with year-round charges.
“We’d be exposing ourselves to too much risk for minimal gain,” he said.
Councillor Don McKay shares the same concerns as Bulmer, and said if LAs is so intent on signing a contract it should make a presentation to council and answer some of its questions.
“Why would you drag them in here just to say no?” asked Mayor Brad Whitcombe, noting there doesn’t seem to be much interest in the LAS program on council.
McKay replied it is a reasonable request, but if council is not interested he has no problem with dropping the issue.
“I’m happy just to forget it,” councillor Susan Fielding said of the LAS proposal.
The rest of council agreed.
