What is Global Adjustment?

What is Global Adjustment?

The Global Adjustment (GA) is a cost which covers a variety of different programs that are required to run the Ontario electricity grid.

It reflects the difference between the wholesale market price of electricity and the regulated rates for OPG nuclear and hydroelectric generating stations. It also covers the difference between the market price and the contracted rates payed to generators across the province. 

The Global Adjustment also includes the cost of conservation programs. 

Are you Class A or Class B?

Class A customers have the flexibility to save hundreds of thousands of dollars on their Global Adjustment by understanding and optimizing their electricity consumption on peak days. 

Class B customers are charged a flat monthly Global Adjustment cost ($ per kWh).

How do the peak days work?

As a Class A customer your Global Adjustment (GA) is charged based on your peak demand during the hours in which the Ontario grid is under the most stress. These days are called coincident peaks. 

Your GA cost is directly proportional to how much of the load you are consuming on those coincident peaks. 

By better managing your energy consumption during those hours, whether through curtailment or other means, significant savings can be achieved. 

 

 

How much GA you pay without Peak Management

  • Since you’re contributing 2.7MW to the total Ontario demand of 21,000MW - you’re responsible for 0.00012857th of the Ontario GA amount (2.7 divided by 21,000 = 0.00012857).

 

  • The GA amount is about $900M/month, so you’d have to pay 0.00012857 x $900,000,000.

 

  • This process repeats for the TOP 5 peak hours of the year. Once the “Base Period” is over, you are billed for this GA in the following “Adjustment Period”.

 

What is the timeline for Peak Days and Cost Savings?

By managing your energy consumption during the base period  proactively you will receive your savings in the following adjustment period.

How does Edgecom Energy help with Global Adjustment Savings?

Our pTrack service provides you with the expertise and experience required to maximize your savings. If you are not managing the peaks you are leaving thousands of dollars on the table.

Need more details? Check out our pTrack Service page
Ready to get started? Contact us. 
We are here to assist. Contact us by phone, email or via our social media channels.
The deadline to participate in the next base period is June 2018, act now to guarantee you get the information you need in time!