The economic conditions of the last several years have forced industry to improve the efficiency of their operations to better their competitive position. Electrical utilities have faced the same threats as the cost of building new power plants became excessive. This was the situation in Ontario in the late 1980's. In 1990, Ontario Hydro undertook a major initiative in partnership with the steel industry to improve the electrical efficiency of electric are steelmaking furnaces. Over the next five years, the Ontario steel industry achieved an electrical energy saving of 20 percent in the existing mills through a series of audits, improvements and the use of new technology. The electrical utility supported this work by providing technical support and information, financial incentives and rate options.