The Industrial Conservation Initiative (ICI) when it was introduced in 2010 applied only to customers with a peak demand greater than 5 MW. The government of Ontario expanded the initiative to include customers with a peak demand greater than 3 MW but less than or equal to 5 MW.
There are a few differences between the two groups of eligible Class A customers:
Greater than 3 MW but less than or equal to 5 MW
In order to be eligible, customers in this range must be classified under the North American Industry Classification System (NAICS) as one of the following:
- 21 (mining, quarrying, and oil and gas extraction)
- 31 to 33 (manufacturing)
- 1114 (greenhouse, nursery, and floriculture production)
- 49312 (refrigerated warehousing)
- 518 (data processing, hosting and related services)
These customers will be assessed over the current base period (which starts May 1 and lasts 12 months) to determine if they meet the requirements to participate. They will be notified by their distributor before May 31, if they are eligible.
Customers who choose to participate in the initiative must notify their distributor that they wish to opt in by June 15. They will then be charged as Class A customers for the adjustment period starting on July 1.
What You Need to Know
Businesses should start reducing their energy use this summer during peaks to take advantage of lower Global Adjustment costs next year. Contact your distributor and visit the IESO's webpage on Managing Electricity Costs to learn about reducing your peak demand.
Local distribution companies will work with eligible customers to determine how can could take advantage of the program.
Above 5 MW
Customers in this range automatically qualify as Class A customers and must opt out by June 15 of each year if they choose not to participate in the initiative. They are not subject to eligibility restrictions related to NAICS sectors.
November 29, 2016: Update to Class A Eligibility
Effective January 1, 2017, Class A eligibility will be expanded to include all customers with an average peak demand over one megawatt. See regulation.
How will I know when to shift my demand?
Class A customers are charged global adjustment (GA) based on their percentage contribution to the top five peak demand hours each year. They are able to reduce their GA costs based on their ability reduce demand during the peak hours.
The top five hours of peak demand in a year are those occurring on different days in which the greatest number of MW of electricity was withdrawn from Ontario's electricity system. They are posted on the IESO's website at www.ieso.ca/Pages/Participate/Settlements/Global-Adjustment-for-Class-A.aspx. Here are a few ways to know when these hours are more likely to occur:
- Time of year: Electricity demand is largely driven by the weather. Ontario is a summer peaking province, meaning the highest times of peak demand tend to be during hot, humid days and/or during a heatwave. Demand can also be high during the winter when the weather is very cold.
Time of day and days of the week: Demand peaks always occur on weekdays when businesses are in operation. The highest times of demand in a day vary between seasons. For example, winter tends to be in the early evening when electricity consumers across the province are turning lights on and making dinner. In the summer, demand tends to be higher in the early to mid-afternoon when air conditioners are turned up during the hottest time of the day.
Peak Tracker: See the top ten real-time demand peaks, and forecast data for the hours and days ahead to track peaks at: www.ieso.ca/peaktracker
Power Data: Follow current and projected demand in real-time at: www.ieso.ca/powerdata