Falconbridge Ltd. has been facing soaring electricity prices during the warm summer, while independent electricity market operators have been making pleas to the public to reduce hydro consumption.
Industrial electricity users pay an "uplift" charge when the electrical companies have to import power. It can have a substantial impact on the bottom line, says an official with Falconbridge.
Falconbridge’s hydro bill hovers around $90 million annually, so any increase in the hydro bill can result in inefficiencies, and at times it is more cost-effective for the company to shut down during high-energy peaks, says an official with the company. Falconbridge has developed a system to monitor price fluctuations, and will schedule regular maintenance for shutdown periods.
Price fluctuations is an issue the mining company has had to deal with over the past few years because the generating capacity of Ontario Power Generation has been limited. Conditions may improve next year when Bruce Power restarts two nuclear-generating units, an official says.
