Settlements

Customers who are eligible and participate in the Industrial Conservation Initiative (ICI) are referred to as Class A customers and they pay their share of global adjustment (GA) based on their peak demand factor (PDF). A customer’s PDF is based on their contribution to the top five peak hours over a 12-month base period (May 1 to April 30).

For more information on how a customer’s PDF is calculated, please refer to the Global Adjustment and Peak Demand Factor web page.

For more information on how the top five peak hours are determined, please refer to the Peak Tracker web page.

Effective May 1, 2022, a transferee (new owner of the transferred load facility) may request for a transfer of title to all or a portion of a load facility under section 8 or 8.1 of Ontario Regulation 429/04 by providing written notice of the transfer to their local distribution company (LDC), if they are a consumer or the IESO, if they are a market participant. Eligibility, peak demand factor calculation and effective date will be determined as outlined in the regulation. The IESO will administer transfer of ownership of ICI facilities for market participant as part of the transfer of facility registration procedure. Please refer to section 4.2.7 of Market Manual 1.5 for more details. 

Customers with average monthly maximum hourly demand greater than 5 MW

Customers with an average monthly maximum hourly demand greater than 5 MW, as calculated for the applicable base period, automatically qualify to participate in the ICI. Eligible consumers will be informed by their local distribution company and eligible market participants will be notified by the IESO before May 31 and if the necessary data and consent is provided to the LDC (or IESO for market participants), as outlined in Ontario Regulation 429/04, sections 6 and 7. These customers must opt-out by June 15 of each year. 

Customers with average monthly maximum hourly demand greater than 1 MW but less than or equal to 5 MW

A customer’s average monthly maximum hourly demand is determined by calculating the customer’s 12-month average of their highest hourly peak demand values for each of the 12 months of the base period. Peak demand values from separate load facilities under the same ownership cannot be aggregated for the purposes of determining Class A eligibility unless permitted otherwise under Ontario Regulation 429/04, section 6.1(4) or section 7.1(4).

Customers with an average monthly maximum hourly demand between 1 MW and, up to and including, 5 MW will be informed by their local distribution company, or the IESO if they are a market participant, before May 31 of each year if they are eligible to participate in the ICI. Eligible customers must opt in by June 15 and must provide the required data and consent outlined in Ontario Regulation 429/04, sections 6 and 7 in order to participate in the ICI during the associated adjustment period. Subject to compliance with all regulatory requirements, existing Class A customers’ facilities will retain their Class A status unless the customer chooses to opt-out of the ICI program for the upcoming adjustment period.

Existing Class A customers who participated in one or more of the conservation programs specified in Ontario Regulation 429/04 and dropped below the average monthly maximum hourly demand threshold during a base period for an adjustment period that began on or after July 1, 2016 may still be eligible to continue participating in the initiative. LDC customers should contact their LDC and market participants should contact the IESO if they believe that their eligibility or PDF calculation has been impacted by their participation in these programs. Please refer to Ontario Regulation 429/04, sections 6.2 and 7.2 for more information.

Read more about Global Adjustment allocation for Class A customers and how to reduce GA costs based on the customer's ability reduce demand during the peak hours. 

Customers with average monthly maximum hourly demand greater than 500 kW and less than 1 MW in certain manufacturing and industrial sectors

In April 2017, the Government of Ontario reduced the ICI eligibility threshold for customers in targeted manufacturing and industrial sectors, including greenhouses, (i.e., with NAICS codes commencing with the digits "31", "32", "33" or “1114”). Customer’s participating in the targeted sectors may be eligible to participate in the ICI if their average monthly maximum hourly demand during a base period is greater than 500 kW and less than 1 MW. See Ontario Regulation 429/04 for more information. Eligible consumers will be informed by their local distribution company and eligible market participants will be notified by the IESO before May 31. These customers must opt in by June 15 and must provide the required data and consent outlined in Ontario Regulation 429/04, sections 6 and 7 to participate in ICI for the associated adjustment period. Subject to compliance with all regulatory requirements, existing Class A customers’ eligible facilities will retain their Class A status unless the customer chooses to opt-out of the ICI program for the upcoming adjustment period.

Class B Electricity Storage Facilities

A Class B electricity storage facility is defined in Ontario Regulation 429/04 as a Class B facility that withdraws electricity from the IESO-controlled grid (ICG) or the distribution system of a licensed distributor for the sole purpose of storing the electricity temporarily and then conveying that electricity or a portion of that electricity back into the ICG or distribution system of a licensed distributor. The portion of electricity that is stored and conveyed back into the ICG or distribution system of a licensed distributor is exempt from Class B GA charges. To receive the Class B charge exemption, market participants are required to provide a self-declaration, in the form of an email or a signed draft declaration, to attest that their facility meets the definition of a Class B electricity storage facility, as defined in Ontario Regulation 429/04.

Subject to compliance with all regulatory requirements, a Class B electricity storage facility may become eligible to participate in the ICI program (i.e., to be treated as a Class A facility) after the facility has registered withdrawals from the ICG or distribution system of a licensed distributor for the entire duration of a base period (i.e., from May 1 to April 30 of the following calendar year).