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 conservation and demand management.
- Strengthening Ontario through a reliable and stable power system.
AMPCO believes that industrial pricing reform in the electricity sector will be best achieved using a “two-pronged” approach:
First, Global Adjustment (GA) amounts in Ontario total almost $1B per month. Allocating $1B per month will result in high rates – whatever way it is done. The amount of the current GA charge must be re-evaluated and, where possible, steps must be taken to reduce its overall size. This approach will not only facilitate lower industrial electricity prices – it will lower electricity commodity costs for all customer classes, including Regulated Price Plan (RPP) customers. A reduction of $2B per year in GA amounts would more than achieve the Government’s 12% rate reduction that is being sought.
Second, in concert with reconciling the changes to the GA, a portfolio approach should be implemented with regard to industrial electricity rate options. Alternative rate options, including the Industrial Conservation Initiative (ICI) but incremental to it, are necessary to address the increasing competitiveness gap between Ontario and other jurisdictions, both in the U.S. and Canada.
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.
Government’s Industrial Rate Consultations
Ontario’s industrial electricity prices are among the highest in North America, with large industrial Class A rates increasing almost 25% over the last five years, and small and medium industrial Class B rates increasing by over 40% in the same period. This situation cannot be allowed to continue if our goal is to make the province truly “Open for Business”. AMPCO continues to be actively involved in the Government’s public consultations on industrial rates. See the attached link to AMPCO’s most recent submission to Government. Read More
Market Renewal Program
A reliable and affordable energy supply is critical to the success of AMPCO Members’ businesses, which is why AMPCO has an interest in discussions on Market Renewal. AMPCO is actively involved in all aspects of the IESO’s Market Renewal Program, including capacity procurement options, real time market redesign and day-ahead market considerations.
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.