Expansion of the Industrial Conservation Initiative (ICI)
Bill or Act:
Electricity Act, 1998
Summary of Proposal:
The Ontario government is committed to providing competitive electricity rates for energy intensive consumers in the manufacturing sector while also promoting electricity conservation.
ICI is currently available to electricity consumers and market participants with an average monthly peak demand greater than 1 MW.
The new proposed amendments would allow eligible electricity consumers/market participants in the manufacturing sector (i.e., with NAICS codes commencing with the digits "31", "32", "33") in Ontario with an average monthly peak demand of greater than 500 kW and less than 1 MW to opt-in to ICI.
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 up to one-third 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 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 included 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.
Effective July 1, 2017, Class A will include all electricity consumers with peak demand greater than 1 MW without any sector restrictions.
Effective July 1, 2017, Class A would also include electricity consumers and market participants in the manufacturing sector with peak demand greater than 500 kW and less than 1 MW to participate.
March 9, 2017
Comments Due Date:
April 8, 2017
7th Floor, 77 Grenville Street