BARRHEAD - Not-for-profit organizations looking for lower electricity and natural gas rates now have the option to pay the same rates as the town.
To do so, they must first enter into an umbrella agreement with the municipality.
Councillors made the decision during their Aug. 26 meeting after hearing from Andrew Riley, regional director of business at Alberta Municipalities (ABMunis).
ABMunis is an advocacy group that works to lobby the provincial and federal governments on issues concerning its members (summer villages, villages, towns, cities, and other specialized municipalities).
One of the potential services the organization offers its members is an energy program, which provides municipalities with reduced power and natural gas bills through its procurement power.
The council also moved that any non-profit organizations already under the municipality's utility umbrella sign similar agreements with the town, and failure to do so would result in removal from the account.
Corporate services director Jennifer Mantay said she invited ABMunis to the council meeting, following a June 24 council discussion on whether the municipality should add the now-defunct Ripple Connection Support Centre (RCSC), which had requested to be added to the Town of Barrhead's utility account.
Council denied the request, citing that any potential savings would be minimal and that the organization would incur liability if it did not pay its utility bills.
Related link: Ripple Connection seeks town's help following cancellation of AHS contract
Mantay noted that, as part of the discussion, councillors requested more information on how much a not-for-profit could save by being added to the town's ABMunis utility account as a community-related organization (CRO).
Currently, Barrhead and District Family Community Support Services (FCSS), Barrhead and District Historical Society (i.e., the Centennial Museum), the Barrhead Curling Club, and Blue Heron Support Services Association (BHSSA) fall under that umbrella.
"Two of which are seeing substantial savings of over $5,000 [annually]," she said.
Mantay also noted that, although the organizations had been under the town's utility account for several years, there was no formal agreement between the parties.
Riley stated that presently, over 170 municipalities have contracts with ABMunis to provide either electricity or natural gas.
"Most of them do have community organizations added to their contract. Some only have one or two, while others have 20, 30 or 40 or more," he said.
In addition to the potential cost savings, Riley said, the other advantage for community-related organizations added to a municipal account is that they don't have to undergo a credit check.
"Many of them would not meet that credit check, so they wouldn't be able to get a natural gas or electricity contract," he said.
Riley added that any savings municipalities and their community-related organizations see are on the commodities, as distribution and transmission rates are regulated.
"So it doesn't matter which retailer you go with, you pay that price," he said, adding that at one time, the electricity commodity and distribution used to be equally split. "Now 70 to 80 per cent are regulated charges."
Riley also noted that on the electricity side, under an ABMunis contract, municipalities have a usage ceiling at which they pay the amount specified in the contract.
"If you go above the allotted usage, you still get it, but you are charged at the variable rate, which could be more or less than the contracted rate," he said, adding on the flip side, if a municipality doesn't use its full allotment, the excess is sold back to the grid for a rebate.
The Town of Barrhead's contract with ABMunis expires in 2029.
Coun. Dausen Kluin asked if the town was close to its allotment.
Riley said it was challenging to say, as the amount can vary from month to month.
"Some months you're over, some months you're under, sometimes you're right on," he said.
Coun. Ty Assaf asked if the town would know the estimated power consumption of a community-related organization before potentially adding them to its contract.
"Theoretically, one CRO could carry 50 per cent of our load," he said.
Riley said in the majority of cases, the organization is billed directly and doesn't go through the municipality.
Mantay said she doesn't expect to see a great flood of organizations requesting to be added to the municipality's ABMunis utility account.
"In the thirty years I've been here, the number on the account hasn't changed. Only one since then has made the request, and only non-profits qualify."
Coun. Dave Sawatzky and Mayor Dave McKenzie agreed, stating that the risk of adding another non-profit that would exceed their contracted amount of electricity is negligible. They suggested adding to the list, but did not foresee a run of organizations requesting to be added to the town's ABMunis utilities account.
"There are not a lot of not-for-profits in our community that actually run facilities," McKenzie said.
Coun. Dave Sawatzky suggested the Royal Canadian Legion may qualify.
Barry Kerton, TownandCountryToday.com
