On November 22, 2012, the Ontario Power Authority released the draft Program Rules for Stream 1 of the Industrial Electricity Incentive program, a few days after it released a draft contract. The program was announced in June 2012 and is aimed at creating new jobs in the industrial sector by providing reduced pricing on electricity to qualifying participants.
The program is being launched in two streams. Stream 1 is open to companies who are looking to open new operations in Ontario, while Stream 1 is intended for existing companies in Ontario who will expand and build a new industrial facility. For both streams, the industrial activity must be in the manufacturing or mining, quarrying, and oil and gas extraction sectors.
The draft rules and contract provide some insight into what the requirements will be for companies that want to apply for Stream 1. To qualify, a company’s planned new operations must use technology or processes or produce products that are not being used or made in Ontario on an industrial scale. The applications will then be ranked based on the amount of capital investment and employment that will result, the location of the project, the amount of power used and other considerations.
On November 8, 2012, the OPA began accepting registrations for Stream 1. A company must register and pay a deposit by December 14, 2012 in order to be eligible to submit an application at a later date. More information is available on the OPA website and in our previous post on the Industrial Electricity Incentive program.