Glossary of Terms
This is the cost of the electricity supplied to you during this billing period and is the part of the bill that is subject to competition.
These are the costs of delivering electricity from generating stations across the Province to Orangeville Hydro Limited then to your home or business. This includes the costs to build and maintain the transmission and distribution lines, towers and poles and operate provincial and local electricity systems.
A portion of these charges is fixed and does not change from month to month. The rest are variable and increase or decrease depending on the amount of electricity that you use. The delivery charge also includes costs relating to electricity lost through distributing electricity to your home or business.** Orangeville Hydro Limited collects this money and pays this amount directly to our supplier.
** When electricity is delivered over a power line, it is normal for a small amount of power to be consumed or lost as heat. Equipment, such as wires and transformers, consumes power before it gets to your home or business.
Regulatory charges are the costs of administering the wholesale electricity system and maintaining the reliability of the provincial grid.
Global Adjustment is a charge on a customer’s electricity bill that reflects the difference between the market price of electricity and the rates paid to regulated and contracted generators, and for demand management programs and conservation programs. The Global Adjustment charge fluctuates in relation to changes in the market price; when the market price for electricity is lower, the Global Adjustment is higher to cover additional costs that were not already received through the market price, and accordingly when the market price is higher the Global Adjustment is lower.
Every Ontario electricity customer pays Global Adjustment. Customers who are on the Regulated Price Plan (RPP) have the charge built into the rate determined by the Ontario Energy Board. In contrast, customers who have a contract with a retailer and have therefore opted out of the RPP see the Global Adjustment on a separate line item on their bill. Customers with a peak demand higher than 50 kilowatts per month who also pay the market price see the Global Adjustment as a separate line item. Customers with a demand of above 5 MW (Class A Customers) are billed for Global Adjustment based on the percentage that their peak demand contributes to the top five Ontario system peaks. For example, if a Class A consumer is responsible for one per cent of Ontario’s peak demand for the five highest hours of the base period they will be charged for one percent of the total Global Adjustment costs.
Orangeville Hydro collects the Global Adjustment funds for the IESO and transfers the funds to the IESO without taking a profit. The Global Adjustment is based on usage; by reducing usage, a customer can reduce the Global Adjustment charge on his or her bill.
Global Adjustment significantly changes monthly. Therefore, some months the Global Adjustment will have more of an impact than others. Customers are advised to take an average of the monthly rates and budget their funds accordingly.
For a detailed explanation of electricity terms, please visit www.oeb.ca
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Industrial Conservation Initiative
In April 2017, the Government of Ontario reduced the Industrial Conservation Initiative (ICI) threshold from 1 MW to 500 kW to make Ontario consumers/market participants in targeted manufacturing and industrial sectors, including greenhouses, (i.e., with NAICS codes commencing with the digits “31”, “32”, “33” or “1114”) with an average monthly peak demand of greater than 500 kW and less than 1 MW, eligible to opt-in to the ICI.
Customers who participate in the ICI, referred to as Class A, pay global adjustment based on their percentage contribution to the top five peak Ontario demand hours. Peak demand is determined to be the average of a customer’s highest monthly peak hourly demand values over the base period from May 1 to April 30. Class A customers can reduce their GA costs based on their ability to anticipate the top five peak hours for the current base period and reduce their consumption accordingly.
The more accurately that a Class A customer can predict the top five hours of peak demand and shift their demand accordingly, the more they will be able to take advantage of this initiative.
Orangeville Hydro will inform all eligible accounts as of May 31st, 2017. If you would like to participate, you must complete the opt-in form and consent form and return to Orangeville Hydro no later than Thursday, June 15, 2017. Once you opt-in, you are ‘locked in’ during the applicable adjustment period July 1, 2017 to June 30 2018.
The Ministry of Energy requires Class A enrolled customers to provide the address and GPS coordinates of their head office and enrolled load facilities, as well as consent for the information to be shared with the Ministry and made public.