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Peak Shaving, sometimes called ‘GA Busting’ or ‘curtailing,’ is the practice of strategically reducing your facility’s electrical demand in anticipation of the top five demand peaks on the Ontario electrical system. Class A customers who execute their peak shaving strategies effectively can reduce their Peak Demand Factor (PDF) and therefore their global adjustment fees.
One way to estimate how much you will save by peak shaving is to add up what you paid in Global Adjustment fees during the last twelve months. You can safely assume that at least that much is on the table for next year.
There is also a ‘rule of thumb’ in the Ontario energy community that every megawatt (MW) in demand taken off-grid during the top five peaks is worth about $500k in annual savings:
Customers who participate in Ontario’s Industrial Conservation Initiative (ICI), pay Global Adjustment fees based on their percentage contribution to the top five peak hours of energy use in Ontario over a 12-month base period. Customers who opt into this initiative are known as “Class A,” and for this particular Class, Global Adjustment fees can make up more than 70% of their electricity costs if no mitigation strategy is executed. Well, in 2015 alone, for every $100 in usage on an electricity bill, a whopping $77 would be the global adjustment fee – while the actual use of electricity was worth just $23.
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