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Industrial Conservation Initiative

IMPORTANT: DECLARATION DEADLINE IS JUNE 15, 2021

The Industrial Conservation Initiative (ICI) is a demand response program aimed at shifting large electricity users’ consumption to off-peak hours. This allows these customers to manage their global adjustment (GA) costs by reducing demand during peak periods.

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Ontario’s electricity system is built to meet the highest demand periods of the year. By reducing demand during peak periods, ICI participants can both reduce their global adjustment costs and help defer the need for investments in new electricity infrastructure that would otherwise be needed.

Customers who participate in the ICI, referred to as Class A, pay GA based on their percentage contribution to the top five peak Ontario demand hours (i.e. peak demand factor) over a 12-month base period.

ELIGIBILITY

Customers who are eligible to participate in ICI include:

  • Customers in the manufacturing sector as well as greenhouse, nursery and floriculture production facilities with an average monthly peak demand of greater than 500 kW and less or equal to 1 MW are eligible to opt-in to the ICI if their establishment NAICS codes commence with the digits “31”, “32”, “33” or “1114”.
  • All Customers with an average peak demand of more than 1 MW, up to and including 5 MW are eligible to opt-in to the ICI.
  • Customers with an average peak demand greater than 5 MW are automatically included in the program and have the option to opt-out of the ICI.

Separate load facilities cannot be aggregated in order for a customer to qualify as Class A (even if they are under the same ownership). The Ministry of Energy requires Class A-enrolled customers to provide the address and GPS coordinates of their head office and enrolled load facilities, as well as consent for the information to be shared with the Ministry and made public.

TIMING

Each cycle of the ICI starts with a base period from May 1 to April 30. At the end of this period, customers are assessed for eligibility.

  • Customers with an average monthly peak demand greater than 500 kW and less than or equal to 5 MW must opt-in to the initiative by notifying Elexicon Energy by June 15, 2021 if they would like to be charged as a Class A customer for the following adjustment period (July 1 to June 30).
  • Customers who qualify as Class A will be notified of their peak demand factor by Elexicon Energy by May 31, 2021.
  • Customers with an average monthly peak demand above 5 MW are automatically considered Class A and must opt-out by June 15, 2021 if they choose not to participate in this initiative.

PEAK HIATUS

On June 26, 2020, the Ontario Government amended Ontario Regulation 429/04 (link below) and introduced a mandatory ICI peak hiatus for ICI participants to allow businesses to focus on recovering from the impacts of COVID-19. The peak hiatus applies to Class A customers participating in the 2020-2021 base period (i.e., May 1, 2020 – April 30, 2021). Class A customer’s peak demand factor (PDF) from the 2019-2020 base period will be used to determine their GA charges in the 2021-2022 adjustment period. Class B customers wishing to participate in the ICI during the 2021-2022 adjustment period will have their peak demand factor assessed based on their peak hours consumption contribution during the 2020-2021 base period.

Further information can also be found on the IESO’s web site under “ICI Backgrounder and FAQs” using the link found below.

RESOURCES

All requirements related to the ICI can be found in Ontario Regulation 429/04.

Further information on Class A eligibility, including backgrounder information, Frequently Asked Questions and a peak tracker tool, are available on the Independent Electricity System Operator’s (IESO) website.

More information on the GA is available on the IESO’s website.

The OEB has provided guidance related to Load Aggregation and ICI Eligibility, view the related OEB Bulletin.

For more information from Elexicon Energy regarding ICI participation, please contact:

  • Kirsten Hutka at 905-427-9870, ext. 5210
  • Melanie Walls at 905-427-9870, ext. 3257

OPTING-IN OR OPTING-OUT

Should you wish to opt-in or opt-out of the ICI, please fill out the form provided below.
Before you fill out the form, you will need:

  • Your account number
  • Your facility’s service address, including GPS coordinates*
  • Your organization’s head office mailing address, including GPS coordinates*
  • NAICS code, if your facility has an average monthly peak demand of greater than 500 kW and less or equal to 1 MW
  • Average Peak Demand (as provided)

*The Ministry of Energy requires Class A-enrolled customers to provide the address and GPS coordinates of their head office and enrolled load facilities, as well as consent for the information to be shared with the Ministry and made public.