Global Adjustment Class A Eligibility
Customers who participate in the Industrial Conservation Initiative (ICI), pay global adjustment (GA) based on their percentage contribution to the top five peak Ontario demand hours over a 12-month period. Customers participating in this initiative are referred to as Class A.
Customers with peak demand greater than 1 MW but less than or equal to 5 MW
Peak demand is determined to be the average of a customer’s highest monthly peak hourly demand values over the base period from May 1 to April 30. Peak demand values from separate load facilities under the same ownership cannot be aggregated for the purposes of Class A eligibility unless permitted otherwise under Ontario Regulation 429/04, section 6.1(4) or section 7.1(4).
See Industrial Conservation Initiative Backgrounder (updated August 2019) that outlines the changes made to the program by the Government of Ontario to expand the eligibility.
Customers with an average peak demand of above 1 MW and up to and including 5 MW will be informed by their distributor, or the IESO if they are transmission-connected, before May 31 each year if they are eligible. These customers must opt in by June 15 of each year to participate in ICI. They will then be charged as Class A customers for the adjustment period starting on July 1.
Existing Class A customers who participated in one or more of the conservation or demand management programs specified in the recently amended Reg. 429/04 and dropped below the peak demand threshold during a base period for an adjustment period that began on or after July 1, 2016 may be eligible to continue participating in the initiative and should contact their LDC for more details.
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 peak demand greater than 500kW and less than 1 MW in certain manufacturing and industrial sectors
In April 2017, the Government of Ontario reduced the ICI threshold from 1 MW to 500 kW to make Ontario consumers/market participants in targeted manufacturing and industrial sectors, including greenhouses, (i.e., with NAICS codes commencing with the digits "31", "32", "33" or “1114”) with an average monthly peak demand of greater than 500 kW and less than 1 MW, eligible to opt-in to the ICI. See Ontario Regulation 429/04. Eligible customers will be informed by their distributor before May 31 each year if they are eligible. These customers must opt in by June 15 of each year to participate in ICI. They will then be charged as Class A customers for the adjustment period starting on July 1.
Customers with peak demand above 5 MW
Under the ICI, customers with an average peak demand above 5 MW automatically qualify as Class A customers. These customers must opt out by June 15 of each year if they choose not to participate in ICI.
ICI Resources Available for LDCs
The following resources are available for LDCs to assist in administering the ICI to their customers:
- ICI Backgrounder (updated August 2019) – General overview of the program with changes to the regulation, key dates, and tips for defining and tracking the peaks
- Frequently Asked Questions for LDCs
- Frequently Asked Questions for Customers
- Webinar Materials
The IESO held a webinar on April 16, 2019 to provide information about LDC responsibilities, customer eligibility, registration and settlement details, and key dates.