The Global Adjustment (GA) is a line item charge on your monthly electricity bill and is used to cover the difference between the market price and rates paid to regulated and contracted generators, and to pay for conservation and demand management programs. The GA was designed to assist the government in eliminating coal-based generation and greening the power system through conservation, demand response and cleaner generation sources.
Prior to January 2011, all major Ontario consumers paid Global Adjustment on a volumetric basis, with the monthly cost spread equally across the total energy consumed by the loads in the province. However, with the passing of Ontario Regulation 398/10 amending Regulation 429/04, two separate classes of consumers were created:
- Class A consumers are defined as customers who pay for their Global Adjustment charges based on their coincident peaks to the top five provincial grid peaks having a monthly average peak over 3,000kW
- Class B consumers who are the rest of the market including the residential and small business class pay for global adjustment based on their volumetric consumption ( based on their kWh consumption).
As of January 1, 2017, Ontario Regulations for this program are changing and will include qualifying customers with an annual average demand of electricity between 1 and 5 megawatts to be able to opt into this program. The decision to opt in to the program must be made prior to June 15, 2017. Once they opt in they will qualify to be billed as a Class A consumer for all future Adjustment Periods until they explicitly opt out.
Costs for GA are continuously rising. The Global Adjustment forecast to be over $500,000/MW in 2017, and calculated on your average load during the top 5 peak periods within a Base Period. That means for every peak that you hit or miss of the top five it is worth about $100,000/ MW. That is an opportunity to reduce your electrical bills that is unmatched by any other program in the market today.
Estimates for 2017& 2018 calendar year is a total GA of over $8 Billion for Ontario, resulting in an average cost of between $400,000 - $500,000 per MW (measured during the top 5 Ontario peaks for Class A consumers).
In other words, if you can reduce your net load through curtailment or on-site generation by 1 MW for all 5 Ontario Peaks, then you will save about $400,000 for the year. If you only cut one of the five peaks then your savings will be about $80,000/MW.
It is a value you cannot ignore. Especially when you are looking to reduce your operating costs.
A Predictive Analytic service that uniquely addresses the needs of Ontario Class A consumers by helping customers to reduce their GA costs. Having a service that will alert you to when these peaks occur during any particular day.
With an outward-focused methodology that understands the dynamics and the factors that determine what the peaks will be well ahead of the peak season. Predicting a day that is at risk of becoming a peak by taking a very critical view of on demand forecasts and factor in items such as past forecast accuracy, expected reactions of dispatch able loads and Class A consumers actions to reduce load, AQEW(allocated quantity of energy withdrawn) risk, as well as changes in weather that could shift the peak hour. Identifying the hours at risk along with different thresholds of confidence, and provide a statistical probability of how likely a peak will stay in the top 5. The information required to determine if either a curtailment action is appropriate, and to what degree or to switch over to alternative energy sources such as batteries, generators, etc. thus providing the best options.
Gescan Industrial and Automation Group can offer you both the Predictive Analytic service along with an alternative energy switch over options to keep you operations running while avoiding the peaks.