As the Class A Global Adjustment opt-in time quickly approaches in Ontario, it is important to start analyzing your peak setting performance during the May 2018 to Apr 2019 base period. It is essential for organizations to understand the business case of Class A vs. Class B in order to decide whether it makes sense to opt-in to Class A by the June 15th, 2019 IESO deadline.
The business case analysis for global adjustment can be rapidly (and affordably) completed by taking advantage of REA’s advanced Energy Dashboard features. The following explains the approach of determining the global adjustment business cases for your organization.
First, upload the 12-months of hourly electricity data that covers the similar period as the Class A peak setting period, which can be easily obtained from your local utility for free. For this example, the data used is a full year in 2017 to perform the business case analysis for 2017-2018 global adjustment. As you are reading this, you will be preparing to analyze your 2018-2019 data.
Now that you have hourly data in the system, start searching for your actual performance during each of the top 5 peak days, which can be found here: IESO Peak Tracker. For this example, we are looking at 2017 performance, which had one of the peak events occur on July 19, 2017 at hour ending 18 (or 6:00PM).
By hovering your mouse over the graph, you can see your organization’s exact consumption during the provincial peak event. Record this value, and all of the other peak day performance numbers, in a table similar to what is shown below to calculate your peak demand factor (PDF).
Once you know your peak demand factor, you can begin to forecast annual Class A global adjustment costs by multiplying PDF by the most recent 12-month total of global adjustment. Learn more about global adjustment here: IESO GA.
In the past, annual global adjustment was around $11.5 Billion, so multiplying it by the above PDF provides an annual Class A estimated cost of $340,000.
So, you now have rapidly forecasted your Class A cost…should you opt-in by June 15th? Before you make this decision, forecast what your Class B global adjustment cost might be.
Begin by looking at your total monthly electricity consumption over a recent 12-month period, and record the total kWh value shown in REA.
From the above chart, REA showed total consumption of 4,700,000 kWh. Class B estimated rates are then calculated by multiplying annual consumption by the average Class B kWh rate, which recently has been around $0.095/kWh. You can learn more about Class B rates here: IESO Class B. Multiplying the two numbers together results in an estimated annual Class B cost of $445,000.
Finally, compare the two business cases to decide what solution is right for you:
- Class A global adjustment: $340,000
- Class B global adjustment: $445,000
For this example organization, the Class A estimated annual savings worked out to $105,000! The organization should certainly consider opting into Class A prior to the June 15th deadline.
Contact our REA line here email@example.com to get started with a free REA account and understand your global adjustment options at an affordable rate. Also take advantage of our low-cost energy advisory services (Engineer-in-your-Back-Pocket) to guide you along the way!
GREG YOUNG, B.Eng., EIT.
Manager of Engineering
205-3365 Harvester Road
Burlington, ON, L7N 3M8
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