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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