Province must lower energy rates now: OFC

On the heels of a presentation last week at the Northwestern Ontario Municipal Association’s fall conference in Thunder Bay, Fort Frances Coun. Tannis Drysdale, on behalf of the Ontario Forestry Coalition (OFC), made a plea to the public here Monday night to let the province know it must deliver the proposed $45 per megawatt hour electricity rate before it’s too late.
“As you all know, the Town of Fort Frances has been involved in the forestry crisis issue through the Northwestern Ontario Municipal Association,” Coun. Drysdale said during the council meeting.
“We were glad to see the government move on our collective request to reduce delivered wood costs and to reduce red tape,” she noted. “However, two or three years into our campaign, we’ve yet to see any movement on the most critical issue—energy pricing for Northern Ontario.”
Coun. Drysdale charged that all the province has to show when it comes to regional energy pricing is “a history of promises.”
Back in August, 2005, Premier Dalton McGuinty referred to the need to address energy issues at the annual general meeting of the Association of Municipalities of Ontario.
The following month, Natural Resources minister David Ramsay was quoted as stating Energy minister Dwight Duncan was expected to announce a new energy plan by the end of October.
He also acknowledged that companies in the region pay $80-$90 per mWh when it costs as little as $10-20 per mWh to produce it.
But in October, 2005, Donna Cansfield became the new energy minister (though Duncan once again holds that post), and the OFC was told there would be delays to a new energy strategy as Cansfield adjusted to the new portfolio.
It was suggested an announcement would come forth in November, 2005.
Despite pressure and government promises of action, no announcements on energy were until In January, 2006, when the province revealed a rate cap which does not reduce costs but maintains the status quo.
Then in February, Premier McGuinty said he recognized that “a stable supply of reasonably-priced electricity is critical to your [forestry sector] for long-term competitiveness” and that “the cost of electricity can be twice as much as in neighbouring Quebec and Manitoba.”
“That means we have to work twice as hard to stay competitive,” added the premier. “We will do what we need to do to assure a stable supply of energy at a reasonable price.”
In July, the OFC issued the province a report card and gave it an “F” for “addressing high electricity costs.”
And even last month at AMO’s annual general meeting in Ottawa, several ministers promised the region action on the electricity rates—something which the OFC took as a very positive sign at that time, said Coun. Drysdale.
But as of today, there’s been none—despite the fact municipal leaders from across the region were encouraged last week at the NOMA meeting to call the energy minister, looking for answers, in a mass call-in campaign.
Coun. Drysdale said the OFC now is looking to everyone in the region—residents, politicians, everyone—to call several provincial offices and let them know that “a rate of more than $45 per megawatt hour is unacceptable.”
“We’ve lost 4,000 jobs. We don’t want to lose one more,” she stressed.
Key phone numbers to call include:
•Premier Dalton McGuinty (1-416-325-1941);
•Energy minister Dwight Duncan (1-416-327-3550);
•Natural Resources minister David Ramsay (1-416-314-2301;
•Finance minister Greg Sorbara (1-416-325-0400); and
•Northern Development and Mines minister Rick Bartolucci (1-416-327-0633).
Coun. Drysdale said everyone is encouraged to call these numbers and let the province know the crucial importance of lower energy costs for the forestry industry in Northern Ontario.
The OFC is comprised of industry, municipal, business, labour, and First Nations leaders working with government to find solutions to the competitive issues in Ontario that affect forestry—and the 200 communities that depend on the sector for their social and economic well-being.