Call for Stakeholder Comments: Industrial Electricity Prices

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Further to the notice below respecting the launch of consultations on industrial electricity prices, the Ministry of Energy, Northern Development & Mines (MENDM) has posted a series of questions for stakeholder comment to the Ontario Consultation Directory. Written submissions will be received from April 1, 2019 – May 31, 2019 concurrent with in-person consultation sessions beginning later in April which will visit each region of Ontario. MENDM will also hold sector-specific sessions with key industries, including:

  • Automotive
  • Forestry
  • Mining
  • Agriculture
  • Steel
  • Manufacturing
  • Chemicals

The questions MENDM has indicated they are particularly interested in receiving stakeholder feedback on include:

  1. What impact has the Industrial Conservation Initiative (ICI) had on your operations and business competitiveness? How easy or difficult is it for you to lower consumption in potential peak hours in order to reduce Global Adjustment (GA) charges? What changes, if any, could be made to ICI to improve fairness, industrial competitiveness or reduce red tape?
  2. What are your thoughts on a rate mitigation program that is based on electricity intensity, trade exposure, or both?
  3. Given the choice, would you prefer a more dynamic pricing structure which allows for lower rates in return for responding to price signals or a flat rate structure that potentially costs more, but is more stable and predictable?
  4. Some jurisdictions have offered targeted electricity programs, that use a competitive evaluation process, to achieve economic development objectives. In some jurisdictions, evaluations are based on elements such as job commitments and investments. From your perspective would such a program be beneficial in Ontario?
  5. The Northern Industrial Electricity Rate (NIER) program currently provides a rebate to eligible electricity consumers. What changes, if any, could be made to NIER to improve fairness and industrial competitiveness?
  6. Electricity retailers currently have a limited role in Ontario’s electricity market. If the option were available, would your company consider entering into an all-in commodity contract with a retailer, even if it involved a risk premium?
  7. What are your views regarding the proposed updates to the electricity market or procurement mechanisms being proposed by the Independent Electricity System Operator (IESO)?
  8. Beyond the commodity portion of the electricity bill, is there anything that you would like to see changed in terms of delivery and regulatory cost recovery or bill presentment?
  9. Are there any other thoughts that you would like to provide with respect to industrial electricity price mitigation?

Submissions and questions to MENDM can be submitted electronically at electricity.consultations@ontario.ca

Courtesy of Sussex Strategy Group