Northern pulp and paper mills receiving rebates
Premier Dalton McGuinty announced the Northern Pulp and Paper Electricity Transition program in November of 2006. The $140-million program provides quarterly electricity price rebates for northern pulp and paper mills that purchase a minimum of 50,000 megawatt hours annually and commit to increased energy efficiency.
Over $51 million in rebates have already been issued to companies. The rebates aim to help participating companies lower electricity costs by 15 per cent. Nine mills have joined the program since its launch in November 2006. Domtar's mills at Espanola and Dryden have received a total of $4.3 million to date.
This program is one of a series of steps the government has taken to address electricity costs. Other measures include encouraging large power consumers in the forest sector to undertake self-generation power projects through the Forest Sector Prosperity Fund and Loan Guarantee program, and extending the rate cap on Ontario Power Generation's non-prescribed supply. In addition, a co-generation power procurement program under the Ontario Power Authority is in place, as well as an Ontario Power Authority program to compensate companies for load shedding and shifting during high cost power peaks.
In addition to Domtar's mills in Espanola and Dryden, the following mills are participating in the rebate program: St. Marys Paper in Sault Ste. Marie; Abitibi-Bowater in Fort Frances, Iroquois Falls and Thunder Bay; Marathon Pulp in Marathon; Terrace Bay Pulp in Terrace Bay; and Tembec in Kapuskasing.
When taken together, all of these measures result in competitive electricity prices for northern pulp and paper mills.