NADF weighs in on hydro rate and Ring of Fire impacts

The province’s energy strategy needs serious work, says the head of the Nishnawbe Aski Development Fund.

Harvey Yesno, the organization’s president, on Tuesday said Ontario must find a solution to high energy costs that have threatened developments like Cliffs Natural Resources proposed Ring of Fire ferrochrome processing facility.

Yesno said in addition to up to 1,300 direct jobs being created by the project, the need for electricity could vastly improve the lives of remote First Nation communities, most of which use diesel power to generate expensive electricity, limiting their ability to grow.

“What we have is a lot of communities in the Far North that are paying a high cost for power. They don’t have any chance at all of not only offering power, but the rates there are exorbitant, because … they’re all independently generated power systems,” Yesno said.

“You have to fly in fuel and sometimes by winter roads it’s better. There’s just huge infrastructure deficit cost, particularly in energy.”

There’s no way to offer industrial power rates, which lead to higher costs at the check-out and subsequently a more expensive way of life.

“The communities are paying 20 cents a kilowatt hour. That’s just residential. If you have institutional or office rates, they’re paying 60 cents a kilowatt. In some cases it’s over a dollar. So that’s not attractive for somebody to actually want to start a business or locate a business in these communities.”

Yesno said with the potential for resource development in the North, it’s time for the province, federal government, communities and private sector partners to come together to figure out how best to deliver the infrastructure needed.

“I think the communities deserve to have reliable energy and cost-effective energy, just like the rest of the province,” Yesno said.

Liberal MPP Michael Gravelle said last week that the province will work with Cliffs Natural Resources to ensure the FPF is built in Ontario, but would not commit when asked if he would fight for a Northern energy rate.