A New Opportunity to Cut Electricity Costs for Class A Customers

Ontario has officially passed a regulatory change that gives large electricity users a new way to reduce Global Adjustment (GA) charges—without installing behind-the-meter equipment or reducing operations.

An amendment to O. Reg. 429/04 was published on June 21, 2025, and takes effect July 1, 2025. This change enables Class A participants in the Industrial Conservation Initiative (ICI) to enter into Corporate Power Purchase Agreements (C-PPAs) with remote, non-emitting generators such as solar, wind, hydro, or biofuel.

Starting May 1, 2026, eligible customers will be able to receive settlement credits from the IESO based on the output of their contracted clean energy projects during Ontario’s top system peaks. Treating that output as if it had reduced their own electricity demand.

What’s Changing

Until now, Class A customers had two main options to reduce their GA charges:

1. Reduce demand during peak hours, or
2. Install behind-the-meter storage or generation to offset grid electricity use.

This amendment introduces a third, more flexible pathway:

• Contract with a remote clean energy project through a C-PPA, and
• Receive peak-demand credits through IESO settlements without any on-site infrastructure.

It’s a “virtual” behind-the-meter approach that allows industrial users to lower costs while supporting clean energy growth.

What This Means for You

This is a valuable tool for manufacturers who:

• Face space, capital, or permitting constraints,
• Prefer to avoid curtailing production during peak periods, and
• Want to align electricity cost reduction with net-zero and ESG goals.

C-PPAs offer:

• Access to GA savings,
• Budget predictability, and
• A path to clean energy leadership without operational disruption.

Looking Ahead

While the regulatory amendment is in place, the full C-PPA framework is still being finalized. The IESO has indicated that key documents are coming soon, alongside stakeholder engagement sessions.

We will continue to monitor the evolution of the program, including IESO updates, guidance materials, and stakeholder engagement opportunities. As further details emerge, we’ll provide timely updates and insights to help your business prepare for implementation in 2026.

If you’re exploring how C-PPAs might integrate into your broader energy strategy, now is a great time to start assessing your peak demand profile and understanding the potential benefits. We’ll continue to track program developments and share insights to help you navigate this evolving opportunity with confidence.