Lower Energy Cost Design: Ontario's New Utility Rate Structures
A complicated set of rules and government entities govern electricity rates in Ontario.
Rates are shaped by the hourly Ontario energy price (HOEP) and a global adjustment (GA), and by the local distribution companies (LDCs) that distribute power from transmission lines to individual homes and businesses. The pricing system is defined, regulated and administered by multiple governing bodies, including the Ministry Of Energy, the Ontario Energy Board, the Independent Electricity System Operator, and over 60 LDCs across the province.
This paper unpacks how various charges translate into utility bills for large (Part 3) buildings in Ontario, and explores new rate structures that have the potential to significantly reduce energy costs, grid peak loads and potentially GHG emissions.