Every month, companies spend tens or even hundreds of thousands of dollars on Global Adjustment, representing, on average 60-70% of their energy costs. With the Industrial Conservation Initiative’s (ICI) expansion of Class A status to now include 1MW consumers, the Global Adjustment represents an enormous savings opportunity for many companies.
What is the Global Adjustment?
The Global Adjustment (GA) is charged by the IESO to make sure the electricity system can supply power. GA covers differences in the market price and contracted rates paid to generators as well as conservation programs. A company’s energy bill is comprised of a number of elements:
- Energy use (total kWh consumed in the month)
- Delivery charges
- Regulatory charges
- The Global Adjustment
How Do GA Charges Work?
GA charges are based on your peak demand:
- Peak Demand Over 1MW (Class A Status)
- Peak Demand Over 50 KW and Less Than or Equal to 1MW
Companies with a peak demand over 1MW are considered eligible for Class A status. Class A customers’ GA costs are based on the percentage of their peak demand that contributes to overall system demand during the five peak hours of the year.
Registering for Class A Status
There are a few simple steps you can take to determine whether Class A status is right for your business:
- Determine if you’re eligible
- Determine if it makes sense to register as Class A
- Register your status
Strategies for Reducing Costs
Whether you are a Class A or Class B customer, there are a variety of strategies you can use for reducing your energy consumption and costs:
- Peak shaving
- Curtailing load
- Behind the meter generation