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 peak hours in 2020-2021 as they work to return to full levels of operation. Instead, Class A customers will have their peak demand factor from the 2019-2020 period used to determine their global adjustment charges in 2021-2022. For additional information, refer to the Ministry’s news release.
The peak hiatus applies to Class A customers participating in ICI for the 2020-2021 period (i.e., July 1, 2020 – June 30, 2021). Accordingly, any Class B customer wishing to enter ICI in the 2021-2022 period would have their peak demand factor assessed based on their demand in peak hours during 2020-2021 (i.e., May 1, 2020 – April 30, 2021).
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.
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)
|Sum of Top 5 System-wide Consumption Peaks (MWh)
Peak Demand Factor
System-wide GA costs for a given month
Your Peak Demand Factor from example above
Your GA charge for the month