Global Adjustment (GA)

HOEP is only one part of the total commodity cost for electricity. The global adjustment (GA) is the component that covers the cost of building new electricity infrastructure in the province, maintaining existing resources, as well as providing conservation and demand management programs.

This graph represents the total commodity portion of electricity on your electricity bill. There is an inverse effect on the two columns–generally when HOEP is lower, GA is higher and vice versa.

Average HOEP plus Average GA 

All customers in Ontario pay GA − how they are billed is determined by the type of consumer they are. Consumers that participate in the Industrial Conservation Initiative (ICI), referred to as Class A customers, pay based on an annual determination of their coincident peak demand which in turn specifies their share of GA costs. All other consumers in Ontario pay a share of GA through the Class B GA rate as seen below.

Class B

Wholesale metered Charged 1st estimate, 2nd estimate or actual GA rate based on consumption (determined by LDC or your retail contract)
Retail contract
Small business and residential
Time-of-use prices GA rate included in these prices (determined by the Ontario Energy Board)
Tiered prices

Class A

Consumers that participate in the ICI An annual determination of their coincident peak demand specifies their share of GA costs

The Bottom Line on Electricity Prices

These Class B customers will see a separate line item on their bill for GA.


Your LDC will be able to tell which variation of the GA they bill on. If the rate on the IESO website is different than the rate on your bill, your LDC can provide more information (for example, your billing period spans more than one calendar month).

Find Your Local Distribution Company

The IESO publishes three variations of the Class B GA rates. The 1st Estimate for GA looks ahead to the following month's Class B rate, based on Ontario demand forecasts, estimated contract and program costs and true-ups from previous months. It is primarily used by local distribution companies for billing purposes−and for many customers it is the value they will see on their bill. While the 1st Estimate is not calculated as a forecast of actual GA costs, it can provide consumers a guide against which they can compare real-time market prices. The monthly actual GA is published after the fact and is calculated using final demand and cost information. The rate used by LDCs to bill their customers does not affect the overall amount paid for GA over time.

Below are the three variations of the Class B rate in kWh for the current and previous year.

Global Adjustment (¢/kWh)

2017 Jan Feb Mar Apr  May Jun Jul Aug Sep Oct Nov Dec
1st Estimate 6.69 10.56 8.41 6.87 10.62 11.95        
2nd Estimate 8.68  8.43  6.89
10.22 12.78              
Actual 8.23  8.64  7.14 10.78  12.31              



Global Adjustment (¢/kWh)

2016 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1st Estimate  8.42 10.38  9.02  12.1  10.4  11.7  7.67  8.57   7.06  9.72 12.3   10.6
2nd Estimate  9.21  9.68  10.3  11.2  11.5 9.36 8.41 7.05  9.15  11.8  11.5  7.87
Actual  9.18  9.85  10.61  11.13  10.75  9.55 8.31  7.10  9.53  11.2  11.1  8.71

For historical prices in kWh, see Data Directory (Price - Global Adjustment Report)

For current reporting in MWh, see Class B Global Adjustment, and Data Directory for historical values (Price - Global Adjustment Report).

Global adjustment by components

The global adjustment (GA) amounts increase or decrease in response to changes in HOEP. When HOEP is lower, the GA is higher to cover the additional payments such as for energy contracts, and regulated generation. GA also changes in response to system conditions, and with the addition of, or changes to generator contracts and programs.

This chart shows the total monthly GA costs broken down by fuel types and programs.

Wind

  • Includes projects under Renewable Energy Supply, Renewable Energy Standard Offer Program, and the Feed-in-Tariff program

Biomass, Landfill and Byproduct

  • Includes projects under Renewable Energy Supply, Renewable Energy Standard Offer Program, Feed-in-Tariff, recently converted OPG Atikokan and Thunder Bay facilities, and NUG contracts with the IESO

Hydro

  • Facilities with agreements through Renewable Energy Supply Program, Renewable Energy Standard Offer Program, Hydroelectric Contract Initiative, and Feed-in-Tariff programs, as well as OPG's facilities that fall under the Hydroelectric Energy Supply Agreement

Nuclear (non-OPG) and Natural Gas

  • Bruce Power nuclear and natural gas facilities including OPG’s Lennox (dual fuel)

Solar

  • Includes projects under Renewable Energy Supply, Renewable Energy Standard Offer Program, and Feed-in-Tariff program

Industrial Electricity Incentive Program

  • An incentive for eligible consumers in Ontario to increase industrial production. Eligible activities include building a new facility or expanding an existing one, that falls within a specific NAICS Canada 2012 sector

Funds and Financing

  • Includes programs supporting community groups in the design and delivery of renewable energy initiatives and also includes contract penalties received from generators

Conservation

  • Conservation programs including Save on Energy and Conservation Fund

Ontario Power Generation – Regulated Nuclear and Hydro

  • Regulated rates for OPG’s nuclear and remaining hydro generation as set by Ontario Energy Board

Ontario Electricity Financial Corporation – Non-Utility Generation

  • Contracts administered by Ontario Electricity Financial Corporation with existing generation facilities