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On June 12, 2012, the Ontario Minister of Energy, the Honourable
Chris Bentley, introduced the Industrial Electricity Incentive
Program to create new jobs in the industrial sector. The program
would allow new and expanding industrial companies to benefit from
the province's surplus energy supply.
By January 2013, eligible companies could qualify for a reduced
electricity rate if they create new jobs and bring new investment
to Ontario. The program would encourage existing, large industrial
companies to make significant expansions to their operations and
create jobs. The Industrial Electricity Incentive Program would
allow industrial companies to access electricity that would
otherwise be exported to neighbouring jurisdictions. The program
would not affect electricity rates for consumers.
This following bulletin summarizes the key features of the
Industrial Electricity Incentive Program.
Industrial Electricity Incentive Program
By January 2013, businesses will be able to apply to the program
through two streams:
Stream 1:
Available to companies looking to establish new operations in
Ontario.
To be eligible, companies must make a minimum investment of
$250 million that supports new technology, products or
processes.
Long-term contracts will be offered through the Ontario Power
Authority.
Contract terms will vary depending on the size of the project.
Generally, firms will be eligible to receive contracts up to 20
years at 5.5 cents/KWh.
Proposals from companies will be ranked according to job and
economic benefits.
Stream 2:
Available to companies which have already established
operations in Ontario.
To be eligible, companies must be expanding their
operations.
By expanding operations, companies would be eligible to pay
only the market price of electricity on the additional consumption
until 2020.
Next Steps:
At this time the detailed program rules and documentation
including the forms of agreement with the Ontario Power Authority
have yet to be released. The Ministry of Energy will be consulting
with industrial sector stakeholders over the next three to four
months and plans to have specific rules available by the fall with
a full program launch in January 2013.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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