Electricity pricing in Ontario can be complex, especially when it comes to the Global Adjustment (GA) charge. If you’re a Class B electricity consumer, you’ve likely noticed that GA makes up a significant portion of your monthly electricity bill. But did you know thereโs an opportunity to reduce that cost by opting into Class A?
This blog will help you understand what it means to be a Class A customer. Furthermore, learn who is eligible to opt in, and how to decide if it’s the right move for your business.
Understanding Class A vs. Class B
Class A consumers pay Global Adjustment based on their contribution to Ontarioโs top five peak demand hours over a 12-month period. This is known as the Peak Demand Factor (PDF). The more you can reduce your electricity usage during those critical peak hours, the lower your GA charges will be the following year.
Class B consumers, on the other hand, pay a flat GA rate based on their total energy usage, regardless of when it’s used.
Who Can Opt-In?
To be eligible to opt into Class A, according to the IESO:
- Class B customers with an average monthly peak demand factor of at least 500 kW and less than 1 MW. This is for facilities in certain manufacturing and industrial sectors. This category includes greenhouses and the following NAICS codes commencing with the digits “31”, “32”, “33” or โ1114โ
- Customers with an average monthly maximum hourly demand between 1 MW and, up to and including, 5 MW. Customers in this category will be informed by their local distribution company, or the IESO, if they are an eligible market participant. The notification will happen before May 31 of each year. Eligible customers must opt in by June 15.
- A Class B electricity storage facility
- Customers with an average monthly maximum hourly demand greater than 5 MW are automatically opted in to be a Class A customer. These customers must opt out by June 15 of each year.
Is Opting In Worth It?
The key to success as a Class A participant is your ability to predict and respond to Ontarioโs top five peak demand hours. Reducing your load during those critical hours could save tens to hundreds of thousands of dollars annually in Global Adjustment charges.
However, the program also comes with risk:
- If you donโt curtail during peaksโor miss the top 5 peaks entirelyโyou may pay more than if you had stayed in Class B.
- It requires operational flexibility, energy visibility, and reliable forecasting tools.
Tools That Can Help
Many Class A customers use energy management software, such as Edgecom Energyโs AI peak prediction platform, pTrackยฎ. pTrackยฎ enables Class A customers to get real-time alerts and accurate peak predictions, helping them plan load reductions, curtailing fewer times to hit all five peaks. Leveraging Distributed Energy Resources (DERs) such as batteries or generators is another strategy to curtail for peak events with minimal impact on production. With a battery energy storage system (BESS), facilities can leverage a tool like NeuraCharge to manage their batteries’ health and ensure theyโre optimized and ready for a peak event.
Final Thoughts: Should You Opt In?
Ask yourself:
- Can your operations flexibly reduce load during 5โ10 peak events each year?
- Do you have tools or support to predict peak hours accurately?
- Is your average monthly demand between 500 kW and 1 MW?
- Are you looking for a way to control and reduce GA costs?
If you answered yes to these, then opting into Class A could be a smart strategic move, especially with the right technology and planning in place.
Need Help Deciding?
Edgecom Energy works with Class B consumers to evaluate potential Class A savings and provide peak prediction tools that maximize your opportunity to minimize Global Adjustment charges. Reach out to us for a free assessment of your facilityโs Class A potential.
