Amending Ontario Regulation 429/04, (Adjustments Under Section 25.33 of the Act), made under the Electricity Act, 1998 ("Ontario Regulation 429/04").
Regulation - LGIC
Bill or Act:
Electricity Act, 1998
Summary of Proposal:
The Ontario government is committed to providing competitive electricity rates for energy intensive consumers while also promoting electricity conservation.
The Ministry of Energy is proposing to amend Ontario Regulation 429/04 in order to ensure consistent treatment is available to electricity consumers that wish to become embedded Class A market participants under the Industrial Conservation Initiative (ICI) whether they are served by a market participant or a licensed distributor.
Currently, electricity consumers of a licenced distributor are eligible to become embedded Class A market participants. Such electricity consumers are entitled to retain their ICI participation and global adjustment (GA) status when they switch from being an electricity consumer of a licensed distributor to an embedded market participant of the Independent Electricity System Operator (IESO).
The Ministry of Energy proposes to provide parallel treatment for electricity consumers that are currently distributed electricity by a Class A market participant rather than a licensed distributor.
This regulatory amendment would take effect on the date it is filed with the Registrar of Regulations for Ontario.
In 2010, the government introduced ICI as a set of amendments to Ontario Regulation 429/04. Ontario is committed to providing competitive electricity rates for energy intensive consumers while also promoting electricity conservation.
ICI lowers costs for eligible large electricity consumers that reduce their consumption during peak periods. ICI consumers can reduce their electricity rates by 25% on average, and helps to lower total system costs by deferring the need to build new peaking generation.
Under ICI, large "Class A" electricity consumers who can meet a specific average monthly peak demand threshold (i.e., either 3 Megawatts or 5 Megawatts depending on the industry classification) are charged a GA rate proportional to their share of peak electricity demand that is measured during the five highest-peak hours in the year.
Effective July 1, 2015, Class A includes energy-intensive electricity consumers with average monthly peak demand between 3 and 5 MW, whose primary business is manufacturing, mining, refrigerated warehousing, greenhouses and data processing.
June 2, 2016
Comments Due Date:
July 18, 2016
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