Through EMC’s Energy Group team, we are continuously monitoring the energy market and evolution of industry issues, opportunities and changes that may impact your business. On behalf of EMC and our energy team, we are pleased to provide you with the latest industry update. The following are further details on the March 2nd Provincial announcements.
In early March the Province announced changes to Ontario’s electricity market. These changes were announced to be in addition to the previously announced 8% rebate for residential and small business consumers. Consumers will be affected differently based on their consumption and demand thresholds.
For Meters with <50 kW of Demand and Annual Consumption less than 250,000 kWh’s
Starting this summer, Ontario’s “Fair Hydro Plan” will kick in to provide residential consumers, small businesses and farms with an estimated 25% reduction in their electricity bill. This would equate to an incremental 17% reduction as it includes the 8% rebate previously announced which took effect Jan. 1, 2017.
No further details have been announced yet but we expect the Province to release further information by the end of April or early May 2017.
For Meters with 50 to 500 kW of Demand
Currently, little change is expected for this group of consumers from the recent announcements. However, the total costs for the Global Adjustment portion of the bill have actually decreased in the last few months so this is good news for all consumers including the 50 kW to 500 kW group.
The optimal way forward for this group would be to pursue initiatives that would reduce overall consumption, thereby decreasing the GA cost which is based on a cents /kWh rate. We have aligned with industry leaders in key conservation and demand-side management markets.
As an example, an Energy Audit is an excellent first step in understanding your demand and consumption profiles. An audit will also outline a plan for the future to maximize your energy investment dollars. Government rebates are available to pay for a percentage of the cost of the audit. Please call for further information.
For meters over 500 kW of demand (NAICS codes 31 – 33)
Ontario is also expanding the Industrial Conservation Initiative (ICI) program by reducing the Class A threshold from 1 MW of monthly average billed demand (for ALL consumers) to 500 kW or 0.5 MW for manufacturers (those with NAICS codes of 31 – 33).
Consult your records for your NAICS codes or contact your local utility to see what code they have on file for your business. You should get a letter from your LDC at the end of May or early June 2017 outlining your options for Class A or Class B status.
EMC is hosting a webinar for energy group members on the Class B / Class A Global Adjustment Update, on Wednesday May 17th. Please contact email@example.com to register for this event.
Once you are confirmed to qualify for the new 500 kW Class A GA threshold, then signing up for EMC’s Class A Global Adjustment Alert Service (GA Alert) is the next step. EMC’s Global Adjustment Alert Service will notify your business when a Peak day is expected to occur in Ontario, allowing you ample time to curtail your own demand as much as possible. Curtailing your demand will maximize your Global Adjustment savings going forward.
Please feel free to contact myself, Karen Playfoot (firstname.lastname@example.org) or Gillian Pollock-Snow (email@example.com) any time, should you have questions or to discuss any issues in the energy market that are of interest to your organization.