The idea of establishing regional energy pricing to help struggling Northern Ontario industries survive and be competitive is starting to gain traction at Queen’s Park.
One Northern mayor would like to see the creation of regional power entity to develop the North’s vast potential of water, wind and biomass-generated sources of energy.
“It seems so much more cost effective to put us in charge of our own economic development in the North,” says Sault Ste. Marie Mayor John Rowswell, who joined with other Northern mayors in answering Energy Minister Dwight Duncan’s request for comments on the province’s power supply mix plan.
“That is the direction we should be going...whether its generation, transmission or distribution. There’s no question we’re putting that on the table.”
Rowswell says Northern Ontario is already energy self-sufficient and has the potential to be a net exporter of power if 6,000 to 7,000 megawatts of untapped hydroelectric power were developed. Many regional businesses, both large and small, have complained about high power bills when hydroelectric power is being produced practically in their own backyard. It’s led to calls for regional pricing from northwestern Ontario leaders whose communities have been devastating by the wave of massive forestry job losses.
In early September, Thunder Bay Mayor Lynn Peterson, whose city has lost 2,500 direct jobs from mill closures and downsizing, told the the province’s Government Actions Committee that “time is not a luxury” and the provincial government must act now.
She gave the government a “glaring red ‘F’” for their efforts on electricity reform.
To protect the forest industry, she supported the call for reduced power rates asking for an immediate reduction to $45 per megawatt hour. Mayors from Kenora, Sudbury, North Bay, Timmins, Thunder Bay and Sault Ste. Marie collectively say energy prices should reflect the costs industry can pay to remain globally competitive.
Rowswell says since industry consumes 80 per cent of the North’s power load, energy prices should be comparable to their business counterparts in Manitoba.
“The price that’s set in southern Ontario, just can’t be carried in the North,” says Rowswell. “Northern Ontario used to be competitive (for energy) but now it’s one of the most expensive places to do business.”
Last April, Premier Dalton McGuinty told civic leaders in Thunder Bay he was receptive to studying the issue of regional pricing.
Energy minister Duncan said as much in his Aug. 23 letter to Rowswell. “On the issue of regional pricing, the Premier has asked my ministry to examine this issue and this work is currently in progress.”
The Ontario Power Authority is preparing a 20-year supply mix advice report for the minister.
Strong emphasis is being placed on developing more renewable resources by increasing the total number of megawatts (MW) from the current level of 7,855 MW being produced to 15,700 by 2025. Rowswell says he’s received no comment on setting up a regional power entity that the mayors are calling an ‘energy development corporation’ to develop new water, wind and biomass-generating sources of power.
Rowswell says the province appears to be listening in realizing Northern Ontario is wide open to develop new sources of hydroelectric power and other renewables.
