The Class A Opt in Period Has Passed: Where do we go from here?

Last week the deadline passed for the Industrial Conservation Initiative’s Class A opt in period. Some eligible customers decided it was the right choice to opt into the program, while others discovered that their global adjustment (GA) costs would go up if they opted in this year. Whether you decided to opt in this year or not, lowering your Peak Demand Factor for the current base period should be a top priority. Lowering this will increase your likelihood of saving money by switching to or continuing as Class A during next years opt in period.

Your Peak Demand Factor (PDF) is the percent of Ontario’s total energy consumption that your facility uses during the five top Ontario consumption peaks of each base period. If you are Class A, the PDF is used to calculate how much GA you will pay each month. The percent of the Ontario peak usage that your facilities uses during the 5 coincident peaks in the base period is the same percent of the GA you will pay each month during the corresponding adjustment period.

The base period is the measurement period that runs from May to April, this is when your PDF is determined. The adjustment period is when that PDF is applied in the calculation of your GA, this runs from July to June.

Lowering your consumption during the five coincident peaks is very important to make Class A benefit your business. As a Class A customer, the lower your PDF is the less you will have to pay in GA, regardless of how much you consumer overall.

To lower you PDF, you must closely monitor the market to predict upcoming peaks. Many small industrials, and other small to medium sized companies, do not have the capacity to hire an in-house employee to be watching the energy market at all times. This is where Powerconsumer can help you. Powerconsumer has an Ontario System Critical Peak Alert Service; we watch the energy market and warn our customers about upcoming peaks in Ontario. This gives you the chance to adjust your consumption patterns accordingly to respond to the peaks. Economies of scale allow for our services to be much more affordable then hiring an in-house energy specialist.

If you have decided that being a Class A customer was not the right choice for your company in the current adjustment period, lowering your PDF is still important. If you lower the PDF enough it could be beneficial for you to join Class A during the next opt in period and will save your business money for the future.

To sign up for the Ontario System Critical Peak Alert Service or learn more about it, contact Powerconsumer at info@powerconsumer.com or 416-447-7774.

For more information about GA and the industrial conservation initiative please see our other reports. Global Adjustment Changes and How it can Help Businesses and To “A” or not to “A”: Is Switching to Class A the Right Choice for Your Business?

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