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Industry supports Ontario's new electricity plan


August 18, 2010
by PLANT STAFF

OTTAWA: Industrial power users in Ontario are happy with the province’s revised electricity plan, which allows them to switch some of their consumption to off-peak hours.

The Chemistry Industry Association of Canada said it supports the Ontario government’s move to adopt a new formula for the Global Adjustment, the levy charged to electricity consumers to cover the cost of generation, transmission and distribution.

Under the proposed new formula, the levy would be based on consumption during the five peak-demand days of the year, rather than the total volume of electricity used. Electricity prices would then rise when demand is high and fall when it’s low durig off-peak time between 9 p.m. and 7 a.m.

“We believe this plan can be win-win for both manufacturing and the environment,” said Richard Paton, president and CEO of the Chemistry Industry Association of Canada.

The Association of Major Power Consumers in Ontario (AMPCO), which represents big industrial power users such as Ford Motor Co. of Canada, Tembec, Nova Chemicals and Suncor Inc., has been pressing the McGuinty government in Ontario electricity policy reforms. It said the plan, once implemented, will contribute to business conditions favouring investment and job creation by providing incentives for large industries to reduce their electricity demand during critical peak times.

“Our members employ 50,000 people in the province’s key manufacturing and resource industries,” said Adam White, president of AMPCO. “In today’s competitive global market, Ontario’s manufacturers need a policy framework that rewards investment in energy efficiency and conservation. The announcement will help Ontario companies attract investment and save and create jobs in the province.”

Details on the draft regulation will be posted on the province’s Regulatory Registry.
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