The Class A cost transfer
Parker Gallant has a new post covering the Industrial Conservation Initiative (ICI), or Class A Global Adjustment mechanism: Ontario’s class distinction stings ordinary hydro customers. In early 2010, then Minister of Energy Brad Duguid issued a directive to the OPA (Ontario Power Authority) instructing them to create and deliver an “industrial energy efficiency program” specifically for large transmission connected (TX) ratepayers. That directive led to the creation of the two classes of ratepayers that now exist in Ontario. It's an appropriate time to revisit the topic because this past week Ontario's Minister of Energy was touting the electricity cost-saving opportunities for businesses that qualify for participation in a newly expanded ICI, because those savings come from shifting costs to other consumers. If you are unfamiliar with the topic the latest article may inspire you to learn more, I recommend some articles for doing so at the end of this short post. One statem...