Electricity Rebates Strengthen Forest Industry

    McGuinty Government Strengthens Northern Pulp And Paper Mills

    TORONTO, June 20 /CNW/ -


    The Domtar pulp and paper mills in Espanola and Dryden are benefiting
from $4.3 million in electricity rebates to help lower their energy costs.
    The program provides quarterly rebates to pulp and paper mills in the
north that purchase a minimum of 50,000 megawatt hours annually and commit to
increased energy efficiency.
    Companies participating in the $140-million, three-year Northern Pulp and
Paper Electricity Transition program, including Domtar, have already received
over $51 million in total. Nine mills are currently participating. The rebates
are designed to help lower the company's energy costs by 15 per cent.


    "Our government has the right plan to strengthen Ontario's forest
industry," said Natural Resources Minister Donna Cansfield
(http://www.mnr.gov.on.ca/en/About/2ColumnSubPage/226953.html). "These rebates
are helping pulp and paper mills be more energy efficient and supporting a
sector that directly benefits northern and rural communities which depend on
forestry as a way of life."
    "The Ontario government's help in our efforts to reduce our electricity
consumption and costs supports our drive to restore competitiveness to our
Ontario pulp and paper operations," said Tim Houle, general manager of the
Domtar Inc. (http://www.domtar.com/en/) mill in Espanola. "This program is
helping us move in the right direction. At the same time, we recognize that we
all have more work to do to become competitive on a North American basis."


    -  The McGuinty government has committed over $1 billion in various
       programs over five years to increase the competitiveness of Ontario's
       forest industry.
    -  More than $376 million in new forest sector investment is already
       underway, and 4,770 jobs have been created or saved.
    -  Three pulp and paper mills which announced shutdowns and that have
       re-started operations are St. Marys Paper, Terrace Bay Pulp and
       Thunder Bay Fine Papers.

    -  Find out more about Ontario's forests
(http://www.mnr.gov.on.ca/en/Business/Forests/index.html) (ontario.ca/forests)
    -  Learn more about Forest Sector Competitiveness programs

                                                      Disponible en français



    Premier Dalton McGuinty announced the Northern Pulp and Paper Electricity
Transition program in November of 2006. The $140-million program provides
quarterly electricity price rebates for northern pulp and paper mills that
purchase a minimum of 50,000 megawatt hours annually and commit to increased
energy efficiency.
    Over $51 million in rebates have already been issued to companies. The
rebates aim to help participating companies lower electricity costs by 15 per
cent. Nine mills have joined the program since its launch in November 2006.
Domtar's mills at Espanola and Dryden have received a total of $4.3 million to
    This program is one of a series of steps the government has taken to
address electricity costs. Other measures include encouraging large power
consumers in the forest sector to undertake self-generation power projects
through the Forest Sector Prosperity Fund and Loan Guarantee program, and
extending the rate cap on Ontario Power Generation's non-prescribed supply. In
addition, a co-generation power procurement program under the Ontario Power
Authority is in place, as well as an Ontario Power Authority program to
compensate companies for load shedding and shifting during high cost power
    In addition to Domtar's mills in Espanola and Dryden, the following mills
are participating in the rebate program: St. Marys Paper in Sault Ste. Marie;
Abitibi-Bowater in Fort Frances, Iroquois Falls and Thunder Bay; Marathon Pulp
in Marathon; Terrace Bay Pulp in Terrace Bay; and Tembec in Kapuskasing.
    When taken together, all of these measures result in competitive
electricity prices for northern pulp and paper mills.

                                                      Disponible en français

    Bill Kissick,
    Forest Sector Competitiveness Secretariat

For further information:

For further information: David Bauer, Minister's Office, (416) 314-2212;
Jolanta Kowalski, Communications Services Branch, (416) 314-2106

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Ontario Ministry of Natural Resources

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