Global Adjustment Class A Eligibility
Note: The Ontario Government has introduced an Industrial Conservation Initiative (ICI) peak hiatus for ICI participants to allow industrial and commercial businesses to focus on recovering from the impacts of COVID-19. Class A customers do not need to anticipate and reduce their electricity demand during the peak hours during the May 1, 2020 – April 30, 2021 base period as they work to return to full levels of operation. Instead, Class A customers will have their peak demand factor from the July 1, 2020 – June 30, 2021 adjustment period used to determine their global adjustment charges during the July 1, 2021 – June 30, 2022 adjustment period. For additional information, refer to the Ministry’s news release.
The peak hiatus applies to Class A customers participating in the ICI for the July 1, 2020 – June 30, 2021 adjustment period. Accordingly, any Class B customer wishing to enter the ICI in the July 1, 2021 – June 30, 2022 adjustment period would have their peak demand factor assessed based on their demand during the peak hours during the May 1, 2020 – April 30, 2021 base period.
Customers who participate in the 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 and FAQs (updated September 2020) 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.
Resources Available for LDCs
The IESO held a webinar on May 8, 2020 to provide LDCs with an overview of the Government’s deferral of a portion of Global Adjustment (GA) charges for electricity consumers that do not participate in the Regulated Price Plan (RPP).
The IESO held a webinar on April 9, 2020 to provide information about LDC responsibilities, customer eligibility, registration and settlement details, and key dates.
The ICI Backgrounder and FAQs (updated September 2020) provides a general overview of the program with summary changes to the regulation, key dates, and tips for defining and tracking the peaks, and frequently asked questions.