Industrial Conservation Initiative

Eligible customers fall into one of two categories: 

1. Any customer with an average monthly peak demand above 1 MW  and less than 5 MW during the applicable Base Period (see below for an explanation on Base Period).
2. Customers in the manufacturing and industrial sectors, including greenhouses that have an average monthly peak demand of 500 kW and less than 1 MW during the applicable Base Period (see below for an explanation on Base Period). Customers in this category must have an North American Industry Classification System (NAICS) code that in "31", "32", "33" or “ends 1114."

Note:  Customers with an average monthly peak demand above 5 MW are automatically considered Class A and must opt-out through the ICI declaration form by June 14 of each year if they choose not to participate in ICI.  

The Base Period
The Base Period is the period in which customers both qualify to participate in the ICI program and their coincident peaks are used to determine the Peak Demand Factor (PDF). The Base Period runs from May 1st of the current year to April 30th of the following year. The Base period is the green shaded area shown in Figure 1 below.

Figure 1

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Adjustment Period 
Customers that qualify for the ICI program and choose Class A have their Global Adjustment charges calculated using the Peak Demand Factor (PDF) determined in the previous Base Period. Charges using that PDF are applied during the Adjustment Period. The Adjustment Period runs from July 1st of the current year to June 30th of the following year. The Adjustment Period is represented by the blue shaded area in Figure 1.

London Hydro will notify eligible customers by email before the end of May. Eligible customers will receive a detailed, site-specific information package that includes:

• A Base Period Report that highlights your peak demands during the top five Provincial Peaks and calculates the Peak Demand Factor that will be used in the next Adjustment Period should you choose Class A. This report compares estimated Class A and Class B costs for the next adjustment period. 
• An Adjustment Period Report that will show you the actual costs paid during the adjustment period ending June 30th of the current year. Additionally, this report provides you with what you would have paid if the other Class had been selected.

Combined, these reports are powerful tools that can be used to assist in the decision-making process. 

To opt-in or opt-out of the ICI, eligible customers must send in their complete form by June 14.

Please note: Only eligible customers’ forms will be processed.

Stay Informed With the Interval Data Center

As an additional resource, London Hydro’s Interval Data Center, an energy management application for commercial and industrial customers, provides a Global Adjustment Tracker feature for all ICI eligible customers. 

Here you are able to review your costs and compare how you rank as a Class A customer vs a Class B customer. You are able to view your current top five peaks coinciding with the top five provincial peaks and assess the effectiveness of your curtailment strategies. 

Log into or register for the Interval Data Center

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For more information on the GA Tracker, please contact Paul Kilbourne, Customer Relationship Manager at kilbourp@londonhydro.com

Eligible customers are assessed on their percentage contribution to the top five hours of peak demand in the province over a base period. The percentage contribution is also referred to as a customer’s coincident peaks. The sum of a customer’s coincident peaks is divided by the sum of the adjusted system peaks to determine the customer’s peak demand factor (PDF).

In this example, the customer’s peak demand factor is 0.00016430.

This factor is used to calculate the customer’s global adjustment charge each month over the following annual adjustment period, which runs from July 1 to June 30. This is done by multiplying the monthly, Ontario-wide total GA costs by the customer’s PDF. For example, the system-wide GA costs for November 2020 were $1,065.83 million. Multiplying this amount by the PDF calculated above would mean that the customer in this example would have paid $175,115.56 in global adjustment costs for that month. 

The more you are able to reduce your peaks during the top five provincial peaks, the lower your PDF will be and the less your Global Adjustment charges will be.

1. You will be eligible if:

• Your business’s average annual peak load exceeds 1,000 kW throughout the base period.
• Your industrial business has a NAICS code in the 31, 32, or 33-series and an average peak load greater than 500 kW throughout the base period.
• Your greenhouse operation has a NAICS code in the 1114 series and an average peak load greater than 500 kW throughout the base period.

If your business meets these requirements, you will default as a Class B consumer and must submit a declaration choosing to be Class A. 

2. Educate your team.
   Take advantage of an opportunity to save money for your business. Although the ICI program is complex, it can also be financially rewarding to your business. London Hydro provides coaching in the ICI program through one on one information sessions, email communications, and the Interval Data Center.
3. Submit the online election forms to London Hydro by the June 14th deadline:
    

As an additional resource, London Hydro’s Interval Data Center, an energy management application for commercial and industrial customers, provides a Global Adjustment Tracker feature for all ICI eligible customers. 

Here you are able to review your costs and compare how you rank as a Class A customer vs a Class B customer. You are able to view your current top five peaks coinciding with the top five provincial peaks and assess the effectiveness of your curtailment strategies. 

Log into or register for the Interval Data Center

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• The regulatory requirements can be found at O.Reg. 429/04
• The Independent Electricity System Operator (IESO) has a library of information pertaining to the ICI program including Peak Tracking, Frequently Asked Questions and more information on eligibility. Those resources are available at IESO GA Information Page