Global Adjustment and Peak Demand Factor
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.
Class A customers are assessed their portion of GA costs based on the percentage that their consumption contributes to the top five system coincident peaks during a predetermined base period, referred to as their Peak Demand Factor.
For example, if a Class A customer is assessed to be responsible for one per cent of Ontario's coincident peak demand for the five highest hours of a set base period, they will be charged for one per cent of total GA costs through the next adjustment, or billing period.
For more detailed information, see the Industrial Conservation Initiative Backgrounder.
Base period
Class A customers are assessed their portion of GA costs based on the percentage that their consumption contributes to the top five system coincident peaks during a predetermined base period (May 1-April 30) and will be charged their percentage of total GA costs through the next adjustment, or billing period (July 1-June 30).
A customer’s consumption during the top 5 demand peak hours (MWh) 3.1 4.4 3.9 4.1 4.3 19.8 |
÷ |
Sum of Top 5 System-wide Consumption Peaks (MWh)
110,578.32 |
= |
Peak Demand Factor
0.00017906 |
System-wide GA costs for a given month $999.6 M |
x |
Your Peak Demand Factor from example above 0.00017906 |
= |
Your GA charge for the month $178,988.38
|