Although the details of the industrial hydro rate program announced in yesterday’s provincial budget are yet to be revealed, AbitibiBowater general manager Doug Murray said it’s good news for Thunder Bay’s only remaining pulp and paper mill.
Ontario finance minister Dwight Duncan outlined the Northern Industrial Electricity program, which will reduce energy costs for qualified industrial customers up to 25 per cent for the next three years.
While some critics have said the program is too little, too late, Murray said it will make a difference for the Thunder Bay plant.
"It will bring the price of power down because of the hydroelectric capacity, which is the bulk of power produced in Northern Ontario," he said. "It’s a lot lower priced than what the going rate is. It will make a significant difference to us as we proceed to work on projects to help us get off the grid."
Murray added the three-year program will bring the mill some stability as it gives them a few years to continue to work on energy self-sufficiency and their power consumption.
"We’re still going to need to work towards a long-term solution to Northern Ontario if we expect to attract development. But we’ve got something to work on now," he said.
The industrial hydro rate program being brought forward is a sign people are recognizing there is something in the North with how power is produced, Murray noted.
The current Northern Pulp and Paper Electricity Transition program expires on Oct. 1 of this year, so Murray said he feels they have time to figure out the details of the new industrial hydro rate program.
"I’m just happy things are being done and that we’ve got a possible path forward," he said. "This is the future and this is where we’re going."
