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Energlzing Ontario
MONDAY, SEPTEMBER 28, 2009
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
Report #:
Subject:
FND-024-09 File
REPORT
Resolution #: ~P~ -5~~-~ 9
By-law
ANNUAL COMMODITY HEDGING REPORT - 2009
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-024-09 be received for information.
Submitted by:
Nancy Ta or, B. ., C.A.,
Director of FinancelTreasurer
(~.,.LQ ' .G~t~
Reviewed by: -~
Franklin Wu,
Chief Administrative Officer.
NT/RB/cd
REPORT NO.: FND-0241,-09 PAGE 2 -
BACKGROUND:
Under Ontario Regulation 653/05, the Treasurer is required to report annually to Council
the status of existing commodity hedging agreements, including a comparison of the
expected results to actual of using the agreements, and confirmation that they comply
with the Municipality's policies and goals.
As required by the Municipal Act, 2001, Council adopted a Commodity Price Hedging
Agreements Statement of Policies and Goals in report COD-054-08, on Monday,
October, 6, 2008.
Over the last year, considerable time has been spent to review the energy requirements
and consumption patterns throughout the Municipality's operating departments. This
information together with' a procurement strategy aimed at reducing risk and stabilizing
cost focused first on the need for a stable natural gas supply contract. On October 7,
2008 the Municipality committed to a fixed price contract for a term of one year to insure
the supply of Natural Ga$. This contract met the procurement goal of both reducing the
risk and stabilizing the cgst, as we had a fixed source of supply at a specified price for a
one year period.
This original contract is siet to expire October 31, 2009 and staff are currently working
with Blackstone Energy Inc. as reported in report COD-043-09 adopted by Council on
June 22, 2009 to set up longer term energy supply contracts for the supply of natural
gas and electricity.
CONCLUSION:
At this time, the Municipality of Clarington has one outstanding agreement that is
consistent with the municipality's statement of policies and goals relating to the use of
financial agreements to address commodity pricing and costs.
It is recommended that this annual commodity hedging report be received for
information in compliance with Ontario Regulation 653/05.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169