Ontario Energy Minister Glenn Thibeault says province's hydro rates are average

News Jul 27, 2017 by Kevin Werner Stoney Creek News

A. Raymond Tinnerman Manufacturing’s Hamilton plant is expected to see over $100,000 in annual electricity savings under the Liberals’ revised Industrial Conservation Initiative (ICI) criteria, part of the government’s Fair Hydro Plan that went into effect July 1.

But even with those electricity savings, company officials say hydro costs are still lower for their four other plants located in Kentucky, Ohio, Michigan and Indiana.

Ontario Energy Minister Glenn Thibeault, along with Brian Bentz, president and chief executive officer of Alectra Inc., and various city officials, including deputy mayor Doug Conley, met with company officials July 27 at A. Raymond Tinnerman’s Hamilton plant on Parkdale Avenue to celebrate with the 200 employees the energy savings the company has made over the last five years.

In June, in an interview with Hamilton Community News, Vic Fedeli, MPP for Nipissing, said high hydro rates have prompted some businesses in Northern Ontario to relocate to Quebec. He said large companies such as Google ignored Ontario and decided to open its first data centre in Quebec because of the rising hydro costs.

“Why? Because Ontario has the highest energy rates in North American,” said Fedeli. “This goes on and on. It’s not just the companies that left Ontario. It’s the companies that chose not to come to Ontario.”

Thibeault disputed the idea from critics that Ontario’s high hydro rates are driving businesses out of the province. He said independent analysis stated Ontario is “smack dab in the middle” of pricing.

“We are not the highest when it comes to electricity prices,” he told reporters.

Thibeault said the problem is companies don’t know about the potential savings from government programs that will reduce their electricity costs.

“The government is working hard with our utilities to do a better job to make these programs better known to these companies,” he said. “Yes, we have heard the stories about companies saying the rates are too high. But have they looked at these programs?”

Thibeault highlighted Peter Ormond, an account manager at Alectra, for alerting A. Raymond officials to potential electricity cost savings under the ICI program. Ormond has been a Green Party candidate in recent provincial and federal elections.

The company, from 2012 to 2017, has earned about $140,000 in energy savings through retrofits and upgrades. Plant manager Chris Roik said with the Liberal government revising the ICI classification, it will allow the company to pay a lower rate starting July 1. He projects the A. Raymond Hamilton plant will save about $116,000 from an average $900,000 annual energy bill.

But company officials said that its plants in Rochester Hills, Michigan, Flemingsberg, Kentucky, Logansport, Indiana, and Brunswick, Ohio, all have lower energy costs, even after the savings earned at the Hamilton plant.

For instance, Ontario’s hydro rate for off-peak hours is 6.5 cents kWh, while on-peak is 13.4 cents kWh. In Michigan the industrial rate for electricity is 7.62 cents kWh, while Indiana is 6.34 cents kWh, followed by Ohio at 6.24 cents per kWh and Kentucky at 5.35 cents kWh.

Thibeault indicated that the Hamilton plant will see energy savings that will make the company competitive with Quebec and nearby U.S. border states.

“These programs help allow companies to stay,” he said.

Under the ICI plan, large industrial consumers can save up to 33 per cent of the global adjustment. Instead of paying the wholesale global adjustment rate, eligible companies pay based on their share of the demand for power used during the highest five peak hours of the year.

In 2011, only Ontario’s largest companies could join the ICI with peak power demand of more than five megawatts. The threshold has been lowered twice already to 500 kilowatts under the Liberal’s Fair Hydro Plan. A. Raymond’s Hamilton plant uses one megawatt of power of peak power demand, and so qualifies for the ICI program.

Thibeault said about 800 companies are involved in the ICI program, with about 350 businesses taking advantage of it throughout Alectra’s area.

Thibeault said “many” businesses will see an electricity reduction of about one-third, but he cautioned that it depends upon the size of the company and how much energy they use.

Ontario Energy Minister Glenn Thibeault says province's hydro rates are average

News Jul 27, 2017 by Kevin Werner Stoney Creek News

A. Raymond Tinnerman Manufacturing’s Hamilton plant is expected to see over $100,000 in annual electricity savings under the Liberals’ revised Industrial Conservation Initiative (ICI) criteria, part of the government’s Fair Hydro Plan that went into effect July 1.

But even with those electricity savings, company officials say hydro costs are still lower for their four other plants located in Kentucky, Ohio, Michigan and Indiana.

Ontario Energy Minister Glenn Thibeault, along with Brian Bentz, president and chief executive officer of Alectra Inc., and various city officials, including deputy mayor Doug Conley, met with company officials July 27 at A. Raymond Tinnerman’s Hamilton plant on Parkdale Avenue to celebrate with the 200 employees the energy savings the company has made over the last five years.

In June, in an interview with Hamilton Community News, Vic Fedeli, MPP for Nipissing, said high hydro rates have prompted some businesses in Northern Ontario to relocate to Quebec. He said large companies such as Google ignored Ontario and decided to open its first data centre in Quebec because of the rising hydro costs.

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“Why? Because Ontario has the highest energy rates in North American,” said Fedeli. “This goes on and on. It’s not just the companies that left Ontario. It’s the companies that chose not to come to Ontario.”

Thibeault disputed the idea from critics that Ontario’s high hydro rates are driving businesses out of the province. He said independent analysis stated Ontario is “smack dab in the middle” of pricing.

“We are not the highest when it comes to electricity prices,” he told reporters.

Thibeault said the problem is companies don’t know about the potential savings from government programs that will reduce their electricity costs.

“The government is working hard with our utilities to do a better job to make these programs better known to these companies,” he said. “Yes, we have heard the stories about companies saying the rates are too high. But have they looked at these programs?”

Thibeault highlighted Peter Ormond, an account manager at Alectra, for alerting A. Raymond officials to potential electricity cost savings under the ICI program. Ormond has been a Green Party candidate in recent provincial and federal elections.

The company, from 2012 to 2017, has earned about $140,000 in energy savings through retrofits and upgrades. Plant manager Chris Roik said with the Liberal government revising the ICI classification, it will allow the company to pay a lower rate starting July 1. He projects the A. Raymond Hamilton plant will save about $116,000 from an average $900,000 annual energy bill.

But company officials said that its plants in Rochester Hills, Michigan, Flemingsberg, Kentucky, Logansport, Indiana, and Brunswick, Ohio, all have lower energy costs, even after the savings earned at the Hamilton plant.

For instance, Ontario’s hydro rate for off-peak hours is 6.5 cents kWh, while on-peak is 13.4 cents kWh. In Michigan the industrial rate for electricity is 7.62 cents kWh, while Indiana is 6.34 cents kWh, followed by Ohio at 6.24 cents per kWh and Kentucky at 5.35 cents kWh.

Thibeault indicated that the Hamilton plant will see energy savings that will make the company competitive with Quebec and nearby U.S. border states.

“These programs help allow companies to stay,” he said.

Under the ICI plan, large industrial consumers can save up to 33 per cent of the global adjustment. Instead of paying the wholesale global adjustment rate, eligible companies pay based on their share of the demand for power used during the highest five peak hours of the year.

In 2011, only Ontario’s largest companies could join the ICI with peak power demand of more than five megawatts. The threshold has been lowered twice already to 500 kilowatts under the Liberal’s Fair Hydro Plan. A. Raymond’s Hamilton plant uses one megawatt of power of peak power demand, and so qualifies for the ICI program.

Thibeault said about 800 companies are involved in the ICI program, with about 350 businesses taking advantage of it throughout Alectra’s area.

Thibeault said “many” businesses will see an electricity reduction of about one-third, but he cautioned that it depends upon the size of the company and how much energy they use.

Ontario Energy Minister Glenn Thibeault says province's hydro rates are average

News Jul 27, 2017 by Kevin Werner Stoney Creek News

A. Raymond Tinnerman Manufacturing’s Hamilton plant is expected to see over $100,000 in annual electricity savings under the Liberals’ revised Industrial Conservation Initiative (ICI) criteria, part of the government’s Fair Hydro Plan that went into effect July 1.

But even with those electricity savings, company officials say hydro costs are still lower for their four other plants located in Kentucky, Ohio, Michigan and Indiana.

Ontario Energy Minister Glenn Thibeault, along with Brian Bentz, president and chief executive officer of Alectra Inc., and various city officials, including deputy mayor Doug Conley, met with company officials July 27 at A. Raymond Tinnerman’s Hamilton plant on Parkdale Avenue to celebrate with the 200 employees the energy savings the company has made over the last five years.

In June, in an interview with Hamilton Community News, Vic Fedeli, MPP for Nipissing, said high hydro rates have prompted some businesses in Northern Ontario to relocate to Quebec. He said large companies such as Google ignored Ontario and decided to open its first data centre in Quebec because of the rising hydro costs.

Related Content

“Why? Because Ontario has the highest energy rates in North American,” said Fedeli. “This goes on and on. It’s not just the companies that left Ontario. It’s the companies that chose not to come to Ontario.”

Thibeault disputed the idea from critics that Ontario’s high hydro rates are driving businesses out of the province. He said independent analysis stated Ontario is “smack dab in the middle” of pricing.

“We are not the highest when it comes to electricity prices,” he told reporters.

Thibeault said the problem is companies don’t know about the potential savings from government programs that will reduce their electricity costs.

“The government is working hard with our utilities to do a better job to make these programs better known to these companies,” he said. “Yes, we have heard the stories about companies saying the rates are too high. But have they looked at these programs?”

Thibeault highlighted Peter Ormond, an account manager at Alectra, for alerting A. Raymond officials to potential electricity cost savings under the ICI program. Ormond has been a Green Party candidate in recent provincial and federal elections.

The company, from 2012 to 2017, has earned about $140,000 in energy savings through retrofits and upgrades. Plant manager Chris Roik said with the Liberal government revising the ICI classification, it will allow the company to pay a lower rate starting July 1. He projects the A. Raymond Hamilton plant will save about $116,000 from an average $900,000 annual energy bill.

But company officials said that its plants in Rochester Hills, Michigan, Flemingsberg, Kentucky, Logansport, Indiana, and Brunswick, Ohio, all have lower energy costs, even after the savings earned at the Hamilton plant.

For instance, Ontario’s hydro rate for off-peak hours is 6.5 cents kWh, while on-peak is 13.4 cents kWh. In Michigan the industrial rate for electricity is 7.62 cents kWh, while Indiana is 6.34 cents kWh, followed by Ohio at 6.24 cents per kWh and Kentucky at 5.35 cents kWh.

Thibeault indicated that the Hamilton plant will see energy savings that will make the company competitive with Quebec and nearby U.S. border states.

“These programs help allow companies to stay,” he said.

Under the ICI plan, large industrial consumers can save up to 33 per cent of the global adjustment. Instead of paying the wholesale global adjustment rate, eligible companies pay based on their share of the demand for power used during the highest five peak hours of the year.

In 2011, only Ontario’s largest companies could join the ICI with peak power demand of more than five megawatts. The threshold has been lowered twice already to 500 kilowatts under the Liberal’s Fair Hydro Plan. A. Raymond’s Hamilton plant uses one megawatt of power of peak power demand, and so qualifies for the ICI program.

Thibeault said about 800 companies are involved in the ICI program, with about 350 businesses taking advantage of it throughout Alectra’s area.

Thibeault said “many” businesses will see an electricity reduction of about one-third, but he cautioned that it depends upon the size of the company and how much energy they use.