Ontario company threatened by green energy policy

CTV News
TORONTO— One of the largest employers in North Bay says it could be forced out of business by the Ontario government’s green energy policies.  Fabrene Incorporated, which has 250 workers manufacturing polyethylene fabrics for industrial use, says rising electricity bills are becoming too much to handle.  Fabrene vice-president John Spencer says the Global Adjustment fee charged to offset the premiums Ontario pays for wind and solar power increased seven-fold in recent years to $1 million a year. 

Spencer says his company can’t pay that kind of power bill and stay in business.

He calls green energy a noble cause, but says the government’s execution of the plan is “causing some pain.”

Spencer says to make matters worse, Ontario pays neighbouring jurisdictions to take its excess electricity, which means he’s subsidizing lower power rates for his American-based competition.

The Ontario government promises to complete a review of the subsidies it pays for wind and solar power by the end of the month, and does plan to reduce the green energy premiums.

11 thoughts on “Ontario company threatened by green energy policy

  1. That will be a sad day for North Bay if they close. One of the better paying companies next to working for the government. I hope this madness will change tomorrow.

  2. What’s the bets that Ontario will soon start giving industries a “special deal” ie industrial price and pass the cost on to guess who – that’s what happened in Denmark.

    • I believe that’s already happening.

      Toronto Star – Aug 17, 2010

      Residential electricity users could be zapped with an extra $48 in annual hydro costs after Premier Dalton McGuinty’s cabinet approved a break on electricity rates for large industrial users. They have extended time-of-use pricing, now in effect for homeowners, to major firms that use a lot of power, thus allowing them to use electricity cheaper at off-peak times. Residential users may have to pick up the slack

    • If and when the grid becomes unstable due to renewable energy as it has in Germany then industry will be forced to leave or go out of business. It costs millions for industries to lose power for even couple of seconds if their machines shut down and have to be restarted.
      So costs can be passed on to other consumers up to a certain point but there is always a point in time where this dosen’t work anymore.
      New industries won’t come to places where there is high priced electricity and an unstable grid.

      • Barbara:

        What is this “if and when”? It is upon you as we speak. Expect system collapse in the early morning! Between Solar Storms, Global Smarming and Liberal malfeasance we can expect the worst! Hide!

      • Because this hasn’t happened yet in Ontario? Production shut down due to grid failure due to dependence on renewable energy. What if a product requires continuous electric supply for the finished product if the power fails? Do these products just become waste material? Start over again and hope the power dosen’t go off.

      • Barbra:

        I have worked a long time in High Tech and manufacturing — indeed just about any scenario is possible from no-effect at all to complete waste of material in process (WIP). It depends on when and where the outage strikes. (Backup power on-site etc…)

        My guess is that it’s happening now in a small way — but there is no evidence either way yet — that I am aware of. The backup from alternative sources to Wind and Solar is 100% and must stay that way.

        For those stats you would need to contact the CMA (Canadian Manufacturers Association). But since some of them make alternative energy products it might cause quite a kerfuffle to bring any problems to light — if they exist.

  3. I feel sorry for these 250 employees, about to loose their jobs.
    Unless of course they voted to re-elect Lying Liberals Oct.6/11, or the previous re-election of same, in which case they deserve to loose their jobs. Like the CAW members at CAT. Good riddance.
    Many more shutdowns to come. Bring em on! Liberal voter jobs only though please.

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