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CHP

For a long time, one of the major concerns for hydro customers in Ontario has been the ever-rising utility costs in the province.

With the removal of the debt retirement fund, the addition of Global Adjustment fees to our bills, and the recent rate increase for Time of Use (TOU) and Tiered Pricing customers, new strategies are needed in order to manage our electrical consumption and costs.

CHP is an excellent alternative to local distribution companies and involves supplying electricity and heat simultaneously to the consumer via on-site power generation. With modern natural gas generators, consumers can take advantage of Ontario’s stable natural gas prices. On-site power generation also allows high-usage customers to use electricity during the day without fear of fluctuating electricity rates and large Global Adjustment fees, and to use the heat byproduct for space/water heating and/or cooling, or for industrial processes.

Aside from customers who have entered a retail contract, grid-connected consumers in Ontario pay the Hourly Ontario Energy Price (HOEP). In addition to the HOEP, consumers pay a Global Adjustment (GA) fee. This fee, as defined on the IESO’s website, “covers the cost of building new electricity infrastructure in the province, as well as delivering Ontario’s conservation programs”.

In 2019, Ontario electricity consumers paid between $858M to $1.33B monthly in GA fees, contributing as much as 80% of a given utility bill. The way that this fee is calculated and passed on to consumers depends on electricity usage and a classification system. For more information on determining which classification you are and determining how your GA fees are calculated, see this article.

Consumers with CHP on-site power will notice a remarkable drop in these Global Adjustment charges and Time-of-Use rates. By collaborating with AI Renewable, you can benefit from a CHP Lease structure where we arrange for funding and the turnkey solution to install CHP power generators from beginning to end, at no capital cost to you. With the installation of on-site power, your facility can experience truly significant savings in utility costs.

If you would like to learn more about how switching to CHP can benefit you, contact AI Renewable for a free assessment. We’d be happy to help!

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