Ontario customers participating in the Industrial Conservation Initiative (ICI) pay a Global Adjustment (GA) based on their percentage contribution to the top five peak hours of energy usage over a 12-month base period from May 1 to April 30. Those who partake are referred to as Class A consumers.
To anticipate when these peak hours are most likely to occur, the Independent Electricity System Operator (IESO) lists the following factors:
Time of Year
Weather is the main variable driving electricity demand in Ontario. Energy usage in the province typically peaks in the summer, during hot humid days and heat waves. Demand also spikes during extreme cold snaps in the winter.
Time of Day and Days of the Week
Historically, demand peaks occur during the week when businesses are open. Time-of-day demand varies between seasons. Winter peaks are inclined to be early in the evening when people turn on lights on and cook dinner. On the other hand, demand in summer tends to be higher in the early- to mid-afternoon when air conditioners are powered up during the hottest time of the day.
Tools to Assist Class A Customers
The IESO’s website allows you to see the top ten real-time demand peaks and forecast data for the hours and days ahead in order to track peaks.
Adequacy Reports publishes Ontario’s hourly electricity requirements for today and for the next 34 days. These are updated throughout the day as conditions change.
Power Data. This allows you to follow current and projected electricity demand in real time.
In the current 12-month base period (May 1, 2017 to April 30, 2018) the top five energy hours so far occurred in June, July, September (twice) and January. The probability of incurring one of the highest peaks in March of this year (or April) is low. When looking at the weather outlook for the month of March we are getting some conflicting reports about temperatures. Some networks are saying the temperatures will be in the normal range while the other network is saying they will be below normal range. Both agree that precipitation will be higher than normal with expected snow falls throughout the month.
The overall total January GA was down to $786 million from its usual $1 billion. There is an inverse relationship between Hourly Ontario Energy Price (HOEP) and GA costs. As the HOEP rises, total GA costs go down and vice versa. Due to the high HOEP in January of $31.14/MWh, the GA was $67.36/MWh. Total GA of about $1 billion per month is expected for the rest of the calendar year.
Now is the time to consider Class A. The due date to select it is June 15, 2018.
