The Global Adjustment (GA) covers the costs of a variety of 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 paid to generators across the province and the cost of conservation programs.
The ICI is a program that allows Class A consumers to manage how much GA they pay. To participate in ICI, you must become a Class A facility.
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. Becoming eligible as a Class A facility depends on your facility's energy consumption and industry.
You're eligible to be billed as Class A if your average monthly peak demand is:
• 500 kW - 1000 kW and you operate a manufacturing or greenhouse facility
• Over 1000 kW in any sector (i.e industrial, shopping center, commercial building, event space etc.)
Class B customers don't / can't participate in the ICI and are charged a flat monthly Global Adjustment cost ($ per kWh).
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. The Ontario ICI program uses the Top 5 hourly peaks of each "Base Period" (more on Base Periods below) to calculate your contribution to the grid's stress. These Top 5 peak hours are called Coincident Peaks. Your consumption during the peaks sets your Peak Demand Factor (PDF). Reduce your PDF and you reduce how much GA you pay.
Peak Demand Factor is calculated by dividing the sum of demand* during the coincident peaks by the provincial demand* during those same hours.
*Note: The PDF and GA calculations are actually based on MWh and kWh, i.e. your ENERGY consumption during the whole hour and not actual demand. We call it demand to make it easier, but it's actually energy.
This PDF is then used to calculate a monthly Global Adjustment charge for each Class A load facility.
The PDF which is set during the Base Period is used to calculate the GA amount due on bills starting the following July. The billing period which goes from July to July is called the Adjustment Period. The provincial GA amount is posted monthly here. Class A customers can calculate their monthly GA by multiplying their PDF by the Total GA (M$).
Managing the ICI program effectively is one of the most cost effective ways to reduce electricity costs, understanding the ICI and GA are the first step in creating a Curtailment Strategy that works for your facility.
Missed a Peak on July 19th, 2019? We didn’t. pTrack™ was able to accurately predict the peak by taking into consideration reaction to IESO data. Consumers who relied solely on IESO estimates would have missed the peak day since the peak hour was inaccurately projected by the IESO peak tracker.
As the GA cost pool is decreasing year over year, the decision to either opt-in to Class A or Class B needs to be more thought out. Decreasing GA cost pool means that the amount of potential savings is also reduced, so only customers who can hit all 5 peaks and curtail cheaply will reap the full benefit of being Class A.
With the increased number of ICI participants and embedded energy resources like generators and battery storage coming onto the grid, predicting the top 5 coincident peak hours is increasingly difficult. Read on to learn why AI is a necessity for predicting the Top 5 Peaks.