Several communities north of Lake Superior are accusing the Wynne government of making a last-minute, "stunning reversal" of a promise to launch the Natural Gas Access Loan program.
Municipal leaders in Marathon, Schreiber, Terrace Bay, Manitouwadge and Wawa issued a joint news release on Monday, saying they have been working with Toronto-based company Northeast Midstream for over two years on an innovative liquefied natural gas (LNG) distribution project to deliver natural gas to an area of the province that is not connected to a gas pipeline network.
They said a feasibility study supported by the Northern Ontario Heritage Fund had forecast savings in energy costs of more than $6 million a year for municipalities, businesses and homeowners.
According to the joint statement, the viability of the project has been placed in jeopardy because rather than a commitment of $230 million in loans and grants, the government will now provide a $100-million grant.
Marathon Mayor Rick Dumas said "having only limited availability to funding programs will greatly impede project development in small-town northwestern Ontario."
Terrace Bay Mayor George Davis said the announcement that the program "has essentially been defunded by $130 million is certainly disappointing and concerning, as it will no doubt adversely affect our ongoing LNG project." He added that ever-increasing energy costs represent a significant obstacle to living and doing business in northern Ontario.
The mayor of Schreiber, Mark Figliomeni, said he hopes the new program will still allow communities to maintain "the very aggressive timelines that have been put in place...Our residents and businesses are desperate to have an affordable alternative to oil and electric heat." Figliomeni added, however, that "this change appears to be a roadblock to implementation."
Manitouwadge Mayor Andy Major weighed in as well, saying "Reducing energy costs for the north should be a priority for this government, and it appears that once again the north is not being considered."
In the statement, the communities noted that north shore residents currently pay up to four times more than other Ontarians for space-heating and water-heating.
