Ontario’s ICI Freezing Comes to Halt; Facilities Can Resume Incentivized Peak Demand Reduction

Are you a Class A customer taking advantage of the ICI?

After the Ontario government took action to help aid in Covid-19-related economic recovery with its mandatory freezing of the ICI program (applied to Class A participants of the base period from May 1st, 2020 to April 20, 2021), many Ontarians were eager to know when its hiatus would finally lift.

The June 26th, 2020 hiatus revoked from most Class A customers any incentive to reduce and monitor power usage during peak hours - with the true impact of the program’s halt seen in summer 2020; reaching extreme peak scenarios of over a whopping 24,000 MW.

Now, we’re pleased to announce that the ICI hiatus has finally come to a halt.

Rejoice, peak-conscious Class A customers: Facilities that have registered for the ICI program can now continue to save money through managing their energy usage during Ontario’s 5 peaks.

The IESO estimates that participation in the ICI program was able to reduce peak demand by more than 1,400 MW in the year 2017. Reducing demand during peak periods today leads to smaller and more manageable peak demand levels on the aging power grid.

Who’s eligible to participate in Ontario’s ICI program?

As of April 26, 2021, the ICI program eligibility will be based on 2020-21 consumption. In most cases, customers must have a monthly average peak demand of greater than 500 kW during the applicable annual base period to qualify for ICI.

Eligible participants include customers in most manufacturing and industrial sectors (including greenhouses) with an average monthly peak demand of greater than 500 kW and less or equal to 1 MW, or any customers with an average monthly peak demand of greater than 1 MW but less than 5 MW. Any customers with a monthly peak demand for electricity exceeding an average of 5 MW for the respective base period is opted-in to Class A automatically, although they are given the choice to opt-out prior to June 15thd.

Updates to Ontario’s Energy Plan: What does this mean?

Posted on November 5, 2020, the latest Ontario provincial budget laid out details of the new Comprehensive Energy Plan. The plan applies changes to the Global Adjustment allocations for industrial and commercial power customers, which were set in place to reduce electricity bills while helping Ontario businesses.

But even with the applied changes, one thing remains the same: that the management of demand during peak hours serves as the most effective way to keep Global Adjustment fees under control.

When it comes to reducing peak usage, T&T Power Group is here to help.

Contact our team of power saving experts today to learn about how you can further incentivize the reduction of power usage during peak periods in Ontario.



Posted by Tilo McAlister | Jul 7, 2021 | Categories: Power Generation