The Industrial Conservation Initiative (ICI) has been expanded and now applies to customers with a peak demand greater than one megawatt. This change was made by regulation which came into effect on January 1, 2017.
There are a few differences between the two groups of eligible Class A customers:
Greater than1 MW but less than or equal to 5 MW
In order to be eligible to participate in the ICI, the customer must have a peak demand greater than 1 MW during an annual base period from May 1 to April 30. Customers that qualify as Class A will be notified by May 31 of their peak demand factor by their distributor (LDC) if they are are distribution-connected, or the IESO if they are transmission-connected.
Customers with a peak demand greater than 1 MW but less than or equal to 5 MW must opt in to the ICI by notifying either their distributor or the the IESO by June 15 if they would like to be charged as a Class A customer for the following adjustment peiod, starting on July 1.
Above 5 MW
Customers with a peak demand above 5 MW are automatically considered Class A customers and must opt out by June 15 of each year if they choose not to participate in the initiative.
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.
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of peak demand in a year are those occurring on different days in which the greatest number of MW of electricity was withdrawn from Ontario's electricity system.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