The Ontario government plans to launch an Industrial Electricity Incentive program next year to entice big industry to expand or relocate here.
Starting next January, companies deemed eligible by the Ontario Power Authority can qualify for a reduced electricity rate in exchange for creating jobs and investment.
For outside companies looking to set up shop in Ontario, there's a minimum $250-million investment requirement for projects in technology, products or manufacturing processes. The OPA is offering long-term contracts with the terms varying and the projects ranked according to size, jobs and economic benefits.
For Ontario companies looking to expand, the province said companies would be eligible to pay only the market price of electricity on additional consumption until 2020.
The government expects to have the rules in place this fall after it consults with industry.
Nipissing MPP Vic Fedeli immediately pounced saying southern Ontario businesses are getting the same hydro rates as those in the Northern Industrial Electricity Rate Program at $55 per megawatt-hour.
Fedeli said with more than 600 jobs lost in Timmins when Xstrata Copper moved processing operations to Quebec for cheaper power and with 60 mills closed across the North, “now we lose our competitive advantage.”
The Northwestern Ontario Municipal Association (NOMA) welcomed the program saying it has been calling for an Ontario-wide industrial energy price.
Vice-president Iain Angus said Manitoba is selling its electricity between 3.56 cents and 4.94 cents per kilowatt hour, while Ontario charges 7.5 per cents. “(This) announcement brings us much closer at 5.5 cents.”
While not perfect, Angus said it's an improvement to what exists today.
NOMA president Ron Nelson said with 600 megawatts of surplus generation capacity in the northwest, the region can use this program to attract industry.
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