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.
Further Details on Global Adjustment Class A/B Rate Options
Opt-in Deadline for 1+MW Peak Demand Users is June 15th
For all Ontario manufacturers with 1+ MW co-incidental peak electricity demand, you are a possible candidate for the Class A Global Adjustment (GA) rate for the upcoming adjustment period of July 2017 to June 2018. This new threshold level came into effect January 1, 2017.
As many of you are aware, GA is a fee legislated to cover the cost of building new electricity infrastructure in Ontario, maintaining existing resources, as well as providing conservation and demand management programs. There are two rate classes – Class A and Class B. Class A Firms participate in the Industrial Conservation Initiative (ICI), allowing larger eligible firms an option to be charged GA based on their percentage contribution to the top five peak demand hours each year (rather than based on total volume). Class B Wholesale Metered or Retail firms are charged GA based on 1st and 2nd estimates or actual GA rate (based on consumption). For Time-of-Use and Tiered Price customers, the GA rate is included in these prices. GA represents the largest component of your electricity costs.
Electing to become a Class A consumer can result in substantial savings on your hydro bill for the next 12 months. You should receive a letter from your local electrical utility (LDC) by the end of this month (May), advising that your company has qualified for the Class A GA rate.
You must respond to your utility by June 15, 2017 or your acceptance of Class A status will be lost, per the eligibility rules set out by IESO.
EMC’s Energy Team is here to help you with these steps. It is very likely that electing to be a Class A consumer is the beneficial choice... several EMC members choosing to opt-in have identified six-figure savings as a result. In addition, through EMC's GA Alert Service and energy management support, members are also able to achieve additional GA savings through curtailment, peak shaving and other strategies. Our goal is to ensure our manufacturers have the best information possible, to ensure which option is the optimal one for your company. As not all consumers should choose Class A, we would like to review your letter and complete an impact analysis with you – to advise if Class A is the right choice for your organization.
This is an included service for EMC’s members who are enrolled and participating in the EMC Energy Group. We want to ensure every eligible manufacturer takes advantage of this opportunity. To proceed, simply send us a note to indicate and/or a copy of the letter you received and we will provide a detailed analysis and recommendation so that you can make an prudent choice with the best information available.
Please feel free to contact myself, Karen Playfoot (email@example.com) or Gillian Pollock-Snow (firstname.lastname@example.org) any time, should you have questions or to discuss any issues in the energy market that are of interest to your organization.
Cheers from EMC's Energy Team!