Hampton calls for Northern Ontario hydro utility

Miner & News By Jon Thompson

Posted 2 hours ago

Northern Ontario already has the power. According to Howard Hampton, it's time the North started using it.

The Kenora-Rainy River MPP rose in the legislature Tuesday to advocate for an independent power utility in Northern Ontario, which he said would cut industrial rates and stimulate economic activity in the region.

"I appreciate that Toronto has its own energy challenges but they should handle their own energy challenges and let Northern Ontario handle our own energy challenges," he said. "We generate some of the cleanest and greenest electricity on the planet from falling water and we get it at some of the lowest costs on the planet. An independent Northern Ontario electricity authority would allow us to create jobs in Northern Ontario, contribute to the economy of the North and at the end of the day, it would be good for all of Ontario."

Hampton appealed to the legislature on behalf of Cliffs Natural Resources, the company pressuring the province to lower electrical power rates in the Ring of Fire to ensure a smelter will be built in Ontario. Using a calculation tool on Manitoba Hydro's website, Hampton said setting up shop in Ontario would cost Cliffs $5.3 million a month or over $63 million annually. If they built the similar refinery in Manitoba, they would pay $2.1 million a month or $26 million annually whereas in Quebec, they would pay $2.8 million a month or $33 million a year.

He reminded the legislature of Xtrata, which closed its copper refinery in Timmins last year and relocated 2,000 jobs to Quebec.

"All these companies can't be wrong," he said of industries who have relocated to cheaper pastures. "They're all making the same decisions: 'We'll take the ore out of the ground in Ontario but we'll ship it out of Ontario to have it processed because it costs too much money. Hydro rates are so high in Ontario and it would cost us a lot less to process this somewhere else.'"

Premier Dalton McGuinty is turning his back on the excess hydroelectricity in the North going to waste, Hampton feels, because of the influence of financial interests in Toronto. Alternatively, he sees success in Manitoba, where competitive energy rates are stimulating the economy and creating jobs in the North.

"In my view, the McGuinty Liberals are marching to the drum of some Bay Street investors who want to see the hydro system privatized and that's what's happening behind closed doors. The sale of the Abitibi dams to private investors who aren't interested in doing manufacturing in Northern Ontario but are only interested in selling it somewhere else where they can make the most profit because Bay Street investors say that's what's right for the people of Northern Ontario. That's the heart and soul of their electricity policy and it's only going to get worse