The Industrial Conservation Initiative is a program first introduced by the IESO in 2010 to help reduce the costs of managing Ontario’s power grid.
Power grids are designed and built to meet peak electricity consumption even though these periods are often infrequent and brief. The ICI Program was created to reduce these periods resulting in reduced infrastructure investment and reliance on the most expensive generation sources.
Large power consumers reduce their power usage during times of provincial peak demand and, in exchange, can save on a significant portion of their bill known as Global Adjustment.
For many large power consumers, Global Adjustment represents up to 70% of their total electricity bill. This line item charge covers the difference between the market price for electricity and the rates paid to contracted generators as well as conservation and demand management programs.
Businesses with an average monthly peak demand of 5MW+ are enrolled automatically in the program. Businesses with a peak demand between 500kW and 4999kW have a choice – opt-in as an ICI participant (also known as a Class A customer) or remain Class B.
As a Class A customer, you will be charged for global adjustment based on your energy consumption during the top five hours of provincial demand. As a Class B customer, you are charged for global adjustment based on your total kWh consumption.
Understanding when these peak hours will occur and taking appropriate action is critical to enabling this savings opportunity.
During each of the top 5 peak hours, your power costs can effectively be more than 1,000 times higher than your average kWh price so every conservation activity counts.
NRG Peaks has been helping many of the largest businesses in Ontario identify peaks since the program began. We understand the emerging complexities within the program to help you maximize savings while minimizing the impact on your operations.
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