Industrial Conservation Initiative Cryptocurrency Mining Exclusion
Regulation - LGIC
Bill or Act:
Electricity Act, 1998
Summary of Proposal:
The Industrial Conservation Initiative (ICI) is an electricity conservation program that allows participating consumers to manage their Global Adjustment costs by reducing their demand during the peak demand hours of the year. The reductions achieved in ICI benefit the electricity system and all other consumers, by reducing the need for new generation capacity additions that would otherwise add costs to the ratebase.
ICI is offered to all consumers with average monthly maximum peak demand greater than one megawatt (500 kilowatts for manufacturers and greenhouses). There are approximately 1,500 consumers participating in ICI across a range of sectors and geographic locations.
ENERGY's proposal would prohibit facilities that mine cryptocurrency from participating in ICI. Cryptocurrency mining is electricity intensive and, as such, is not aligned with a program like ICI that is intended to encourage electricity conservation.
If the proposal is approved, electricity service providers that administer ICI would also be required to administer the exclusion. The proposal, as well as details on how it would be administered, may be subject to change or further refinement after considering feedback from the Regulatory Registry (RR) posting and stakeholder consultations.
Analysis of Regulatory Impact:
There are expected to be no new administrative costs for business under the proposal.
March 9, 2022
Comments Due Date:
April 25, 2022
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