Gerdau Ameristeel Comments on Proposal to Make a Regulation under the Electricity Act to Amend O.
Gerdau Ameristeel fully supports and agrees with the Minister’s proposed 5 CP allocation of the
Global Adjustment. Gerdau has years of experience operating under a similar regime in other
jurisdictions and we also offer our technical support to ensure the detailed regulations deliver
the intended results. Basing the global adjustment on a customer’s electricity demand during the
five critical peak demand days will provide a necessary incentive to Ontario manufacturers,
including our steel plants in Whitby and Cambridge, to manage their electricity use more
effectively on the most critical days of the year. This will reduce energy prices, improve
reliability and reduce emissions. The government’s leadership in providing manufacturer’s with a
tool to help manage costs in the new green economy sends a signal to business that Ontario wants to
retain and encourage investment in the Province
Competitive and stable electricity prices are critical to our long-term decision making and are
required for continued future investment. Moving to the 5 CP GA allocation provides a more stable
cost structure for our Ontario steel mills. The competitiveness of Ontario industry will rise,
jobs will be protected and new investment will be attracted to the Province resulting in benefits
for all Ontarians.
Gerdau Ameristeel is pleased to support the Ministry’s efforts to realign the Global Adjustment
allocation and urges the government to implement the proposed changes at the earliest time
possible. We look forward to working with the Ontario Government to make our province more
competitive and encourage a culture of conservation.