AMPCO provides a voice for industry within Ontario’s complex regulatory and political environment.
- Ensuring that Ontario industry remains competitive in global markets through an affordably priced electricity sector.
- Promoting rates that are designed to support necessary investment in Ontario industry.
- Strengthening Ontario through a reliable, sustainable and affordable electricity system.
AMPCO believes that industrial pricing reform in the electricity sector will be best achieved using a “two-pronged” approach:
AMPCO recommends that an industrial rate pilot program be developed. This program (incremental to the Industrial Conservation Initiative (ICI)) needs to target large industrial customers who have not been able to participate in a meaningful way in ICI, to help them achieve sustainable competitive industrial rates, as well as to facilitate future capital investments so that the manufacturing and industrial heart of Ontario can help contribute to much needed economic development.
The issue of sector cost control – both existing and future – must be addressed. While the Comprehensive Electricity Plan may have appropriately transferred certain costs from the electricity rate base to the provincial tax base, other actions (the recent amendment to O. Reg. 53/05) have set the stage for a significant increase in Global Adjustment costs as a result of exclusively burdening the Ontario ratepayer with the costs resulting from OPG’s Darlington SMR Project. This occurred despite the fact that the project is still developmental, and serves multiple objectives beyond electricity resource adequacy. This decision, and any other similar actions that would create material upward pressure on electricity pricing, should be very carefully considered, to avoid negative consequences in regards to competitiveness and ability to attract investment.
AMPCO watches the watchdogs and works to control costs. Ontario’s electricity sector has changed over the last few years. The number of agencies and sheer volume of regulatory activity can make it difficult to keep on top of issues that can affect electricity costs- and a business’ bottom line.
Certain generator payment amounts are determined by the Ontario Energy Board, and AMPCO monitors and intervenes in such cases, when appropriate.
Transmission rates in Ontario are approved by the Ontario Energy Board and AMPCO monitors and intervenes on transmission cases, when appropriate.
Local Distribution Companies distribute electricity to consumers, including wholesale and fixed rate customers. Distribution rates are approved by the Ontario Energy Board for each distribution company.
Ontario’s electricity policy powers the economic future of the province.
Budget 2020 - Comprehensive Electricity Plan
In Budget 2020, Government elected to move approximately 85% of the costs associated with wind, solar and bioenergy contracts from the electricity ratebase to the Province’s tax base. Using 2019 Global Adjustment numbers, that totals just over $3.1B in savings for 2019. This will be a permanent change and represents approximately 25% of 2019 Global Adjustment amounts. The Government estimates that Class A users will experience and average decrease in their all-in bill of 14%, while Class B will enjoy an average saving of 16%.
Since early 2020, COVID-19 has dominated headlines as a healthcare emergency and has rightfully seized global attention. However, it has also created unprecedented economic challenges.
At the Government level, as well as at the IESO and OEB, AMPCO has advocated for the industrial consumer. From adjustments to the ICI program and Global Adjustment payments, to the establishment and clearance of pandemic related deferral accounts, AMPCO has effectively worked to reduce the economic impact of COVID-19 on its Members.
AMPCO routinely participates in rate cases and consultations at the Ontario Energy Board. AMPCO’s actions at the Ontario Energy Board reinforce the focus on customer issues and safeguard industrial customer interests.