The Canadian province Ontario intends to extend and revise the Northern Industrial Electricity Rate (NIER) program for three years to support continued growth and development in northern resource and manufacturing sectors. Current NIER participants could continue to receive a rebate of two cents per kilowatt-hour, up to a maximum of 2011-12 eligible consumption levels, or $20 million per year - whichever is lower.
Partnering with Northern Ontario businesses is part of the McGuinty government's Growth Plan for Northern Ontario, which is addressing barriers to investment and strengthening the northern economy. A strong northern economy creates local jobs and protects the services that mean the most to families -- health care and education.
Richard Garneau, President and Chief Executive Officer, Resolute Forest Products, Thunder Bay, comments on the decision:
"The extension of the NIER program is an important step forward. The Province of Ontario has recognized the importance of affordable electricity pricing and established programs resulting in an attractive environment for companies like Resolute to invest for the future. Over the past 18 months, Resolute has announced over $125 million in capital spending for our mills in Northern Ontario. We compete in a challenging marketplace and controlling rising energy costs is a critically important factor in achieving sustained profitability,"
The extended NIER program will start 2013/14, and will run tree years.
