Settlements

Class A customers’ monthly global adjustment charges are based on their peak demand factor (PDF). A customer’s PDF is based on their percentage contribution (i.e., the quantity of energy withdrawn from the IESO controlled grid or distribution system of a local distribution company) during the top five peak hours of the corresponding base period. 

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

For example, if a Class A customer is assessed to contribute one per cent of Ontario's peak demand during the five peak hours (during which the Ontario demand was the highest in the base period), the customer will be charged for one per cent of the total monthly GA costs throughout the following adjustment period.

Base Period

A base period is the 12-month period which begins on May 1 and ends on April 30 of the following calendar year. A customer’s consumption data during this period is used to determine if a customer is eligible to participate in the ICI program. If eligible, the customer’s consumption during the top five peak hours (which also occur during the same base period) is used to calculate the customer’s PDF. If the customer chooses to participate in the ICI program, their monthly global adjustment charges, for the associated adjustment period (12-month period which begins July 1 and ends on June 30 of the following calendar year), will be based on their PDF.