Slide 1: Industrial Conservation Initiative
Industrial Conservation Initiative Class A Methodology for Billing the Global Adjustment
Slide 2: Contents
Contents • Intro to Global Adjustment and methodologies for billing • What is the Industrial Conservation Initiative (ICI) - Class A • Eligibility • What is the Peak Demand Factor? • Annual Opt In Process: • Timeline of ICI • How To Opt In or Out • Requirements • Class A vs Class B Global Adjustment
Slide 3: Section 1: Global Adjustment
Section 1: Global Adjustment
Slide 4: What is Global Adjustment?
What is Global Adjustment? • The Global Adjustment is designed to reflect the difference between the Hourly Ontario Energy Price (HOEP) for electricity and the guaranteed rates paid for regulated and contracted generation • This includes the cost to deliver conservation and demand management program
Slide 5: What is Global Adjustment?
What is Global Adjustment? • Global Adjustment varies from month to month, responding to changes in the HOEP compared to contract prices • GA and HOEP have an inverse relationship • GA can also increase as new generation projects come into service, contract payments take effect, or as a result of a
Slide 6: What is Global Adjustment?
What is Global Adjustment? • Components of Total GACost: The three values below represent the main components of global adjustment used by the IESO to calculate the monthly global adjustment rate: 1. Contracts administered by the Ontario Electricity Financial Corporation with existing generation fac
Slide 7: Billing for GA – Class B
Billing for GA – Class B • Class B Methodology: Total adjusted for loss consumption (kWh) for the billing period x 1st Estimate of Global Adjustment = $ Amount showing on your invoice The 1st Estimate is comprised of three components: 1. Estimate of the GA costs based on the preceding month 2. Estim
Slide 8: Billing for GA – Class B
Billing for GA – Class B Example: Billing Period is February 11 to March 14 and total usage is 497,094.65 kWh • 10.559 ¢/kWh – 1st Estimate February • 8.409 ¢/kWh – 1st Estimate March
Slide 9: Section 2: What is ICI and Class A Eligibility
Section 2: What is ICI and Class A Eligibility
Slide 10: What is ICI – Class A?
What is ICI – Class A? • The ICI is designed to help large energy users manage their Global Adjustment costs through reducing demand during peak hours • Class A customers are assessed and billed based on their % contribution to the five highest system peaks • The more accurately that a Class A custo
Slide 11: Determination of Top Peaks
Determination of Top 5 Peaks • The top 5 peaks are determined using the Ontario Demand (i.e. the 5 hours during the base period in which the greatest volume of electricity was dispatched through the IESO- administered markets for the purpose of supplying Ontario demand). • The IESO is required to pu
Slide 12: Eligibility
Eligibility Eligibility Assessment: 1. Average of your monthly adjusted for loss peaks during the Base Period of May 1 to April 30 2. By Calendar Month, not billing periods 3. By adjusted for loss peak kW, not kVA (which takes power factor into consideration) 4. Facility must be in service by start
Slide 13: Eligibility
Eligibility NOTE: All applicants must provide written consent to the distributor for releasing certain information to the Ministry of Energy and IESO. This is part of the eligibility requirements.
Slide 14: Eligibility
Eligibility Load Facility Aggregation: • Peak demand is determined at the aggregate of all interval meters at the load facility level. A load facility may comprise multiple meter points and buildings as long as they are located on the same property and associated to the same consumer. • A single loa
Slide 15: Eligibility
Eligibility Load Facility Aggregation - Additional Ancillary Services: • Additional small ancillary services (<50kW) which are supplied separately from the main service(s) at the load facility can be included as part of an aggregation if deemed integral to the load facility. • These meters however a
Slide 16: Eligibility
Eligibility Continued Status: • Existing Class A customers that participated in one or more of the programs specified in Section 6.2 of O. Reg 257/22 (adjustments under Section 25.33 of Ontario Regulation 429/04) and dropped below the peak demand threshold during a base period for an adjustment peri
Slide 17: Section 3: Peak Demand Factor
Section 3: Peak Demand Factor
Slide 18: Peak Demand Factor
Peak Demand Factor • Sum of Customer’s five coincident peaks divided by sum of five Ontario system peaks • Top 5 System Peaks will be determined using the “Ontario Real-time Demand” (dispatched through IESO) instead of the AQEW (Allocated Quantity of Electricity Withdrawn) ie. Metered values publish
Slide 19: Section 4: Opting in to ICI
Section 4: Opting in to ICI
Slide 20: ICI Key Dates
ICI Key Dates • April 1 – April 19: LDCs submit their embedded generation and energy storage injection volumes through the Coincident Peak form in Online IESO • April 30: Current base period ends • May 3: The IESO will post the total volume of electricity withdrawn from the IESO controlled grid for
Slide 21: Timeline of ICI
Timeline of ICI • On an annual basis, eligible customers will be presented the option of Opting in to the ICI
Slide 22: ICI Eligibility Notice
ICI Eligibility Notice By the end of May, all eligible customers will be sent an email containing their eligibility assessment and calculated Peak Demand Factor. Notice Contents: • How Eligibility Is Determined • Peak Demand Factor Calculation • Estimated Class A vs B Comparison • How to Opt In or O
Slide 23: Opting In to Class A
Opting In to Class A • Eligibility notice contains a link to the Online Opt In Form • Form must be completed online no later than June 15 • Customers with an average peak demand of above 5 MW are automatically considered Class A and must opt-out if they choose not to participate • Authorization will
Slide 24: Information Disclosure
Information Disclosure • All Class A opt-in customers must provide written consent to their distributor to provide the following information to the IESO and Ministry of Energy and for this information to be published • Legal name and the name under which it carries on business in respect of each of
Slide 25: Class A vs Class B Methodologies
Class A vs Class B Methodologies • Class A vs B comparison – based on historical data • Class B: kWh x 1st Estimate GA Rate • Class A: PDF x GA $ Total
Slide 26: Important Items for Consideration
Important Items for Consideration • Reminder: you will be billed on your assessed PDF for the entirety of the adjustment period July 1 – June 30 • Are you expecting your load requirements to decline over the adjustment period? For example: • as a result of implementing efficiency measures at the fac
Slide 27: Section 5: Getting the most out of ICI
Section 5: Getting the most out of ICI
Slide 28: Getting the most out of the ICI
Getting the most out of the ICI • The more accurately that a Class A customer can predict and reduce their consumption during the top five Ontario peak demand hours, the more they will be able to reduce their overall electricity charges. • There are certain factors that drive the possibility of syst
Slide 29: Forecasting Tools
Forecasting Tools • IESO Peak Tracking Tool - Demand Forecast from July 13, 2016 (May 2016 – April 2017 base period)
Slide 30: Forecasting Tools
Forecasting Tools • IESO Peak Tracking Tool - Demand Forecast from May 6, 2022 (May 2022 – April 2023 base period)
Slide 31: Forecasting Tools
Forecasting Tools • For Current Base Period, IESO posts: • Forecasted Demand for next 24 hours • Forecasted Demand for next 6 days (highest hour of each day) • Top 10 Demand Peaks to Date • ICI Ontario Demand Peak Tracker • Provides a real-time snapshot of the top 10 peak hours and ICI Ontario deman
Slide 32: Forecasting Impacts
Forecasting Impacts • 15% curtailment across five coincident peaks
Slide 33: Forecasting Impacts
Forecasting Impacts • 15% curtailment financial impact
Slide 34: Section 6: Transferring a Class A load facility
Section 6: Transferring a Class A load facility
Slide 35: Transferring Class A Load Facility
Transferring Class A Load Facility • Transfer of a Class A load facility process: • Hydro One requires formal written notice of the Class A change of ownership using a template form. The form includes the following information: • The transferor • The transferee • Date of transfer • Address of Class
Slide 36: Transferring Class A Load Facility
Transferring Class A Load Facility • Section 8 of O. Reg 257/22 (adjustments under Section 25.33 of Ontario Regulation 429/04) was amended to allow Class A consumers the ability to transfer a portion of a Class A load facility • Must apply to a separately metered portion of an existing Class A facil
Slide 37: Additional Notes
Additional Notes • Customers that move to Class A, will also be moved to Calendar Month Billing (if not already) • Regulatory Charges – how you bill on Capacity Based Recovery changes from per kWh rate to PDF x Total:
Slide 38: QUESTIONS?
QUESTIONS? 1.866.922.2466 CICR@HydroOne.com