Regulation Number(s):
O. Reg. 429/04: Adjustments under Section 25.33 of the Act
Instrument Type:
Regulation - LGIC
Bill or Act:
Electricity Act, 1998
Summary of Proposal:
The proposed regulatory amendments would facilitate an interruptible rate pilot to be developed in conjunction with the Independent Electricity System Operator (IESO). The pilot would address stakeholder feedback received during the 2019 Industrial Consultation specific to the challenges of identifying and responding to peak demand events while participating in the Industrial Conservation Initiative (ICI). The pilot would be targeted towards large electricity consumers, where participants are charged GA at a reduced rate in exchange for agreeing to reduce consumption during system or local reliability events, as identified by IESO.

Offering an interruptible rate pilot would allow ENERGY to gauge consumer interest and to study the design and potential for a broader offering. Elements of the pilot including eligibility, size of offering, design of competitive selection process, GA rate offering and activation process will be informed through consultation with stakeholders.

ENERGY is also considering a number of administrative changes to O. Reg. 429/04. Administrative changes that are proposed are described in the following:

Adjustments to peak demand factors (PDFs) to correct errors: Would allow IESO to make retrospective adjustments to a customer's peak demand factor to correct errors, if made within a specified limitation period.

Billing adjustments: Would require IESO and local distribution companies (LDCs) to make billing adjustments that correspond with the timing of a customer's permitted switch from Class A to Class B due to an extraordinary event

Determination of peak demand hours: Would have the top five peak hours identified based on Ontario demand values. The calculation of PDFs would continue to be based on adjusted values which reflect impacts such as embedded generation.
Requirement to provide new load facility information: Would require that ICI participants give consent for their electricity service provider to share with the Ministry the following load facility information:

1.North American Industry Classification System (NAICS) code;
2.Annual consumption;
3.Monthly peak demand; and
4.Peak demand factors.

Definition of "load facility": Would add more detailed language to clarify the definition of a load facility for the purpose of determining ICI eligibility, including in cases where multiple meters or connection points exist.

Other Proposed Changes:
Transfer of market participant load to different transformer station
Clarifying the eligibility criteria for facilities within specific NAICS codes.
Extending the notification deadline for IESO to provide peak demand factors to LDCs.
Clarifying storage injections under s. 11(4.1).
Clarifying the definition of total system demand.
Including storage injections in the peak demand calculation under ss. 9 (1) (b).
Clarifying the exemption from GA charges for Class B facilities providing ancillary services.
Updating the Conservation Demand Management eligibility provision under s. 6.2 (3) and 7.2 (3).
Streamlining the administration of transfers of ownership.
Providing for the administration of transfers of ownership for part of a facility.

The proposed regulatory amendments may be subject to change after considering feedback from the Regulatory Registry (RR) posting and stakeholder consultations.
Analysis of Regulatory Impact:
There are expected to be no new administrative costs for business under the proposal.
Further Information:
Proposal Number:
Posting Date:
November 5, 2021
Comments Due Date:
December 20, 2021
Contact Address:
77 Grenville St, 7th floor,
Toronto, ON M6S 5B7