Interruptible Rate Pilot
Ontario has taken an important step to unlock additional demand-side flexibility by providing large customers with a pilot interruptible rate offering that enables eligible businesses to manage their electricity usage and lower their bills.
Starting July 1, 2023, large consumers participating in the Interruptible Rate Pilot (IRP) are testing a new option to reduce their global adjustment charges in exchange for agreeing to temporarily lower demand, as directed by the IESO, during periods when the electricity system is stressed. This approach will also give the IESO greater planning and operational certainty. The pilot represents an opportunity to test a new rate design that could open up new policy options and contribute to cost savings for all ratepayers.
The pilot will run for up to three years. Participants will receive advance notice and be curtailed for up to 15 interruption events and 60 interruption hours in each pilot year. They will be charged global adjustment at the pilot rate in exchange for consuming at or below a specific, contracted demand level during interruption events as identified by the IESO.
The IRP was developed as part of an IESO stakeholder engagement process. It also builds on feedback to the Industrial Conservation Initiative, a longstanding program that enables some large electricity users to reduce consumption during peak hours and manage the associated global adjustment costs. Instead of requiring participants to closely monitor weather and demand forecasts to identify potential peak hours, the IRP simplifies the process and eliminates the uncertainty.
Interruption Events
The IESO will declare IRP interruption events in accordance with the interruption conditions set out in Exhibit E - Interruption Conditions and Procedures for Interruption Events, and can be amended by the IESO from time to time. Notification of the interruption events and hours will be made available publicly through the IESO's Advisory Notices.