Shutting Your Facility During Coincident Peaks – Are The IESO Global Adjustment Savings Worth It?
In Ontario, there are two major components to any customer’s power cost – the Hourly Ontario Energy Price (“HOEP”), and the Global Adjustment Demand Fee (“GA”). Ontario Commercial and Industrial (“C&I”) customers who generally use 500KW of power or more can be classified as Class A customers. These Class A customers can reduce their load during the province’s Coincident Peak (“CP”) which reduces the province peak, and correspondingly can reduce their future IESO Global Adjustment costs too.
Coincident Peak Demand: When Do The Coincident Peaks Occur?
To determine when a Coincident Peak will occur, and thus when to reduce your load, there are a number of solutions available. Firstly, notifications are sent on a day-ahead or a day-of basis and generally, these notifications are for a 4 to 6 hour window. Over the past 10 years, these Coincident Peak notifications have typically been on weekdays in the afternoon. Also, there are generally around 15 to 25 notifications of high likelihood days that you would have to chase in order to hit the Coincident Peaks.
Traditional Load Management Is No Longer Effective
Today, most Class A C&I customers in Ontario utilize load management techniques to reduce their load during Coincident Peaks. In their simplest form, load management techniques involve turning off non-critical equipment or processes. Therefore, you can reduce your electric load during these windows. To do this you will need a process to turn these systems off and a plan to turn them back on. Consequently, the total outage contribution for chasing the peaks is around 10 to 12 hours of outages. Now consider doing this for all 15 to 25 days. Ultimately, there could be a total outage at your plant lasting anywhere between 150 to 500 hours. All to save on future power costs. Is that really worth it to you?
The Solution? We’ll Take On Your HOEP And IESO Global Adjustment Costs So You Can Save
The question remains, why go through all that hassle and lost production? Instead, you could get an Uninterruptible Power Supply (“UPS”) and an extended battery system at no cost to you from Demand Power. This way, you haven’t got to turn down production at your facility at all.
Our solution doesn’t just provide you with a UPS with an extended battery to chase the peak, it also provides you with improved power quality and power reliability. As an added bonus, our solution improves the life of your sensitive equipment and provides you long-term economic benefits too. So how do we do it? We’ll provide you with a fixed price retail supply contract where Demand Power takes on all your HOEP and IESO Global Adjustment costs. If we do not hit the Coincident Peaks, you still get the savings. Best of all, you receive this value on day one
compared to the current shared savings models. With that method, the value of reducing the GA would be at least one year in the future. So ask yourself, what do you have to lose?
The Demand Power solution provides you:
- Guaranteed GA and HOEP savings, on a fixed price basis for at least 10 years
- No load reduction of your facility
- Benefits in power quality and power reliability
- A simple, easy to understand method