A tale of woe on hydro costs: Sudbury roundtable told of businesses' difficulties navigating savings programs.

• Author: Myers, Ella
• Position: NEWS

When 10 per cent of your capital expenditure goes towards the hydro bill, and you consume one per cent of the province's hydro alone, power is more than just an inconvenient monthly bill.

This is the case for Vale's Ontario operations, and the cost of hydro is becoming increasingly vexing. But they are taking advantage of energy savings programs, and hope to see other businesses do the same.

"When we do our budget planning, the price of energy is the second highest operating cost," said Jody Kuzenko, Vale's director of refining in Sudbury. "You can see that energy pricing is a key variable that matters to us."

Vale joined other Sudbury businesses, the Greater Sudbury and Ontario Chambers of Commerce, and the Independent Energy System Operator (IESO), at a roundtable Jan. 29 to discuss hydro prices, cost savings programs and provincial policies.

Kuzenko said that Ontario's prices are higher than those in bordering provinces, and Vale's operations in Manitoba are significantly less burdened by hydro. Sudbury chamber board chair Karen Hourtovenko thinks Northern Ontario companies are even further impacted.

"It's not just a Sudbury issue, it's an Ontario issue," said Hourtovenko. "We do have differences, though, because of the industry that primarily drives Northern Ontario. Although it is a burden absolutely for smaller businesses, at an energy-driven company [like Vale] you can't just turn the lights down and work with candles." However, programs run through the IESO can help cushion high costs. For example, Kuzenko said Laurentian University representatives described an Energy Manager Initiative she hadn't heard of in which a facility receives an initial payment of $50,000 if they hire an energy manager, someone qualified to develop and implement energy strategies and improve efficiency.

The range of programs also include assistance for retrofitting with improved equipment and systems, funding for energy audits, and support for new construction projects that incorporate energy efficient components...