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Quantifying Class A Customers’ Savings

In a previous post we reported that the Industrial Conservation Initiative (ICI) program had been expanded to include eligible customers with a peak demand for electricity of more than 3 megawatts (MW) and less than 5 MW. In this post, we provide a couple of examples that demonstrate the advantage of enrolling into this program. As will be demonstrated, the savings can be substantial, depending in large part on the customers’ usage pattern.

Profiles

Manufacturing Profile

This consumption profile displays a typical seasonal pattern whereby consumption is relatively higher in the winter and summer months. This pattern is largely due to higher electricity usage for heating and cooling requirements. Alternately, the consumption during the “shoulder months”, i.e. spring and fall, is relatively low. Overall, the usage during peak hours is approximately 15% higher than during off peak hours.

 

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

12 Month Average

Maximum Hourly Consumption (MW)

3.63

3.72

3.65

3.83

3.51

3.52

3.27

2.80

2.88

3.25

3.00

3.16

3.35

Greenhouse Profile

The consumption profile of a greenhouse is typically U-shaped. The usage is the highest during the winter months and the last two months of the year. The usage during the summer is relatively low and flat. The majority of electricity consumption occurs during off peak hours.

 

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

12 Month Average

Maximum Hourly Consumption (MW)

4.44

2.74

2.55

3.00

3.21

3.72

3.32

6.05

5.39

4.86

5.41

4.15

4.07

Eligibility

Manufacturing Profile:

This hypothetical customer is in manufacturing and therefore meets the NAICS requirement (see previous blog post for details). The 12 months average of the maximum hourly consumption is 3.35 MW, which is larger than 3 MW and less than 5 MW.

Greenhouse Profile:

This hypothetical customer is a greenhouse and therefore meets the NAICS requirement (NAICS 1114). The 12 months average of the maximum hourly consumption is 4.07 MW, which is also larger than 3 MW and less than 5 MW.

Estimation of Savings

The customer is assessed on its percentage contribution to the top five hours of peak demand in Ontario over the base period (May 1 to April 30). The percentage contribution is also known as the customer’s 5 coincident peaks (5CP).

System Peak Occurrence

System Load (MW) ManufacturingCustomer’s CP (MW)

Greenhouse

Customer’s CP

(MW)

Peak 1: July 17 @ Hour Ending 4:00 PM 24,689 3.20 1.47
Peak 2:  July 19 @ Hour Ending 1:00 PM 24,207 3.59 1.35
Peak 3: July 18 @ Hour Ending 4:00 PM 24,070 2.89 1.33
Peak 4: July 16 @ Hour Ending 4:00 PM 24,009 3.33 1.44
Peak 5: July 15 @ Hour Ending 4:00 PM 23,596 3.40 1.20
AVERAGE 24,114 (a) 3.28 (b) 1.36 (b)

The Peak Demand Factor (PDF) is defined as (b) / (a)

  • Manufacturing Profile’s PDF is 0.000136113
  • Greenhouse Profile’s PDF is 0.000056335

The PDF is used to calculate the customer’s global adjustment (GA) charge over the adjustment period (July 1 to June 30). This is calculated by multiplying the PDF by the total GA.

Based on historical HOEP and GA, the approximate savings from enrolling into the program are as follows:

  • Manufacturing Profile’s Savings: ~$280,000 or ~14% savings
  • Greenhouse Profile’s Savings: ~ $790,000 or ~ 45% savings

If the customer is able to shift their demand during the top five peak hours, they will be able to make additional savings by lowering their PDF. Assuming that all five peak hours occur in the month of July(In the base period May 2013-April 2014, the top five system peaks occurred between July 15 and July 19), whereby the customer is able to curtail their demand by 15%, the extra savings would approximately amount to:

  • Manufacturing Profile’s Additional Savings (due to demand shift): ~$20,000
  • Greenhouse Profile’s Additional Savings (due to demand shift): ~ $10,000

Final Thoughts

The customer’s Peak Demand Factor (PDF) is assessed during the base period (May 2014 – April 2015). The customer’s PDF will subsequently determine how much it will be charged during the adjustment period, which occurs from July 2015 to June 2016. Eligible customers can opt in/out between June 1 and June 15 of 2015.

As demonstrated in the examples above, customers can realize substantial saving by opting in to this program. The scale of the savings depends on the consumption pattern of the customer. Contact your Bruce Power Direct representative to find out if you are eligible and to get an assessment of potential savings.

This post was written by guest blogger, Gabriel Villegas, Market Regulatory Affairs Advisor at Bruce Power.

Read Gabriel’s previous guest blog here.

Stay tuned for more guest bloggers.