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Ontario's Chief Energy Conservation Officer awards Certificate of Recognition to Tembec's plant in Kapuskasing

Friday, March 30th 2007 1:52:29pm

Media Release - Attention News, Assignment and Photo Editors

(Kapuskasing, Ontario, March 30, 2007)  Peter Love, Ontario's Chief Energy Conservation Officer, presented a Certificate of Recognition to Tembec's Kapuskasing operation for their support in helping to build and advance a Culture of Conservation in the province.  Tembec was the first applicant when the Ontario Power Authority began its Demand Response Program (DRP) in late June 2006.  The award was accepted by Terry Skiffington, VP & General Manager, Tembec Kapuskasing Operations.

The DRP pays large power consumers for not using power during periods of high electricity demand. A rigorous set of criteria must be met before companies enrolled in the program can 'bid into' the market.

"Our facility in Kapuskasing is one of the most efficient consumers of electricity in the world; nonetheless, we are a large power user. The establishment of DRP on a trial basis last summer certainly created a win-win situation. Our ability to shift large blocks of power allows us to make a significant contribution to both the reliability and cost of the Province's power supply," said Mr. Skiffington.

Mr. Skiffington added, "The market based incentive that the DRP is based on also provides an offset to our purchased power costs, which is absolutely fundamental in assuring our ongoing competitiveness.  Accepting this certificate recognizes the joint success of the DRP to date and the anticipation that the integrity of this program will be maintained once the current pilot period is over and that the pending DR2 initiative will be delivered in a manner similar to what has been presented to us to date.  The maintenance of the financial integrity of these programs is critical to the sites continued competitiveness."

"The value of the program was evident as early as August 1, 2006," said Peter Love. "When the highest (provincial) record for hourly demand was set, DRP enrollees responded by contributing up to 182 MWh of reduced demand.  The average aggregate demand response provided over the eight hour period was 133 MWh."

The maximum delivered demand response in a single hour for 2006 was 182 MW, which also occurred on August 1st. The average curtailment, over all eligible curtailment hours in 2006, was 93 MW, or 35% of the gross name plate capacity at the end of December 2006.

Mayor Alan Spacek attended the event, and praised Tembec's efforts.  Attendees Jamie Lim, President and CEO of the Ontario Forest Industries Association (OFIA), and Barbara Mossop, the OFIA's Manager of Environment and Energy were commended for their organization's efforts to advance energy conservation in a series of projects and benchmarking exercises with their member companies.


For further information, please contact:

Barton Sala, Ontario Power Authority, (416) 969-6009, barton.sala@powerauthority.on.ca

The Conservation Bureau is an office of the Ontario Power Authority.  It was established in 2005 to develop, coordinate and stimulate electricity conservation and demand management by planning, designing and implementing comprehensive programs that foster a culture of conservation across the province ( www.conservationbureau.on.ca).

DR is a flexible resource that provides significant benefits for participants (who may be able to gain financially), for system reliability, and ultimately for all electricity customers as it motivates more efficient use of a key resource. Over the longer term, by reducing demand on our electricity system, DR reduces the need for building additional capacity, as well as the related financial costs and environmental impact.