Ontario's government will target high electricity prices in an economic announcement to be released on Thursday.

Finance Minister Dwight Duncan confirmed that the fall economic update will feature measures to pull down the cost of electricity and could provide consumers with some much-needed relief.

Increases in electricity prices have become a political thorn for the McGuinty government, which has claimed them necessary to pay for improvements in the system.

"We will be talking about things like hydro rates, yes," Duncan said of his upcoming update.

"We'll be speaking about a whole range of things on Thursday and how we intend to address issues on a variety of files."

Speaking in the provincial legislature, Premier Dalton McGuinty also trumpeted his government's track record in helping Ontario families cover costs.

"We put in place an energy and property tax credit (of) up to $900 per family and up to $1,025 for seniors," the premier said.

"All told, it will help nearly three million Ontarians when it comes to their electricity and property taxes."

But Progressive Conservative leader Tim Hudak has turned the issue into a debate about the Liberal inability to listen to the concerns of Ontarians.

Hudak blames Liberal green energy policies for sending electricity bills higher, a problem that was compounded by adding another eight per cent to costs when the HST was slapped on electricity as well as home heating bills and gasoline.

Meanwhile, Ontario's deficit projection for 2010-11 is now $18.7 billion. That figure marks a drop of about 25 per cent, when the deficit projection was $24.7 billion.

The final deficit amount for 2009-10 was $19.3 billion.

"Growth in the economy, expenditures have tracked very well and we are seeing reasonably solid growth in a range of revenues, including corporate taxes," Duncan told reporters.

"Corporate taxes have performed very well this year. We're seeing some good news there."

However, critics said the deficit reduction was the result of the HST.

"Oh they've taken a lot of money in through the HST," said Hudak.

"That's a massive tax grab on families: eight per cent more for gas for your car, heat for your home, for hydro rates, and now with gas over $1.08 a litre, they're raking in a lot of money on the backs of families."

With a report from CTV Toronto's Paul Bliss