ICI Participants Are Now Able To Offset Peak Demand Using Corporate PPAs With Eligible Generators

The Ontario Ministry of Energy has amended regulations under the Electricity Act, 1998 (the Act) that allow Industrial Conservation Initiative (ICI) participants to offset their facility's peak demand and lower their Global Adjustment (GA) costs by entering into corporate power purchase agreements (PPAs) with eligible generators with qualifying clean generation facilities that inject supply into the IESO-controlled-grid or a licensed distribution system.

This bulletin provides an update to our earlier post on the topic.

What you need to know

• ICI participants are incentivized to reduce demand during peak hours. ICI participants are required to pay a charge, called the GA, based on their relative contribution to the top five peak hours of Ontario electricity demand, calculated over a 12-month base period beginning on May 1, 2025. They are therefore incentivized to shift their electricity use away from peak periods or to install behind-the-meter generation or