IESO-Managing Electricity Costs

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    MANAGINGYOUR ELECTRICITYCOSTS:a guidefor business

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    The IESO is a non-prot organization that

    manages the reliability o Ontarios power system

    and operates the wholesale electricity market.

    Every ve minutes, the IESO orecasts electricity

    demand throughout the province and collects

    the best oers rom generators and dispatchable

    consumers to provide the required amount

    o electricity.

    The electricity market allows customers to see the

    price fuctuate based on supply and demand.

    As a result, they can shit electricity use away

    rom peaks to times when the price is lower.

    The IESO works with customers paying the

    market price by creating educational material

    on the electricity market to help them manage

    their bottom line electricity costs. For more

    inormation, visit www.ieso.ca/business

    By understanding how and when your

    acility uses electricity, you will be able

    to discover opportunities to cut costs and

    boost prots. You will also be able to tellyour customers and community that your

    business is using electricity wisely.

    FIVE KEYS TO MANAGING

    ELECTRICITY COSTS

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    A Guide or Business 1

    Businesses that use over 250,000kilowatt-hours o electricity per year

    (or at least $2,000 per month in

    electricity costs) pay the market

    price or electricity rather than the

    time-o-use prices that households,

    small businesses and designated

    consumers such as arms pay.

    As a business that pays market

    prices or electricity, your costs are

    based on: How much you use

    Your peak demand

    The time of day and week you use it

    i you have an interval meter

    Cost-saving opportunities will becomeclear by nding answers to these

    questions:

    How much electricity are you using?

    Whats the pattern of your usage

    is it higher at certain times o the

    day or month?

    An energy management plan canboost your bottom line over the short

    and long term. Setting goals or more

    ecient usage can signicantly

    reduce your costs.

    Making changes to your operations

    or equipment can yield signicant

    savings. Not all energy-saving ideas

    require capital investments:

    Know the factors that affect the

    electricity price

    Manage and reduce your total

    energy use and your peak demand

    Learn how to work with your local

    utility, the Ontario Power Authority

    and your natural gas supplier to make

    the most o the available nancial

    incentives or businesses that take

    steps to conserve electricity or changethe way they use electricity.

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    81

    UNDERSTANDHOW YOUREBILLED

    2

    KNOW WHEREYOU STANDTODAY

    3

    INVEST IN ANENERGY MANAGE-MENT PLAN

    4

    CONTROLYOUR ELECTRICITYUSE

    5

    CASH IN ONINCENTIVES

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    2 Managing Your Electricity Costs

    Understanding how youre billed or

    electricity is the rst step to reducing

    your electricity costs.

    Electricity: This is the cost o the

    electricity supplied to you measured

    in kilowatt-hours (kWh). It is the part

    o the bill that is subject to competi-

    tion. This means you can buy itthrough your local utility (Standard

    Supply Service) or choose a retailer

    licensed by the Ontario Energy Board.

    Line Loss: When electricity is

    delivered along distribution lines,

    not all o it reaches its destination.

    For example, when electricity moves

    along the wires, some o it is lost as

    heat its simply a function of the

    physics o how electricity moves.

    Utilities use a loss actor to adjust

    the electricity consumption upward

    so that you pay the ull amount o

    what it costs to supply your electric-

    ity. This dierence is typically shown

    on bills as metered usage and

    billed usage.

    Global Adjustment: This accounts

    or the dierence between the market

    price and the rates paid to regulated

    and contracted generators as well as

    conservation and demand manage-ment programs.

    Regulatory (Wholesale Market

    Services): This rate provides or the

    reliable management o the power

    system and the wholesale electricity

    market. It is approved by the Ontario

    Energy Board (OEB).

    Debt Retirement: This charge o

    0.7/kWh is set by the Ontario

    Ministry o Finance to pay down theresidual stranded debt o the ormer

    Ontario Hydro.

    Standard Supply Service (SSS)

    Administration: This $0.25 charge

    per month covers a portion o adminis-

    trative costs that your utility incurs.

    Customer Charge*: This xed monthly

    charge covers your utilitys administra-

    tive costs such as meter reading,

    billing and customer service.

    UNDERSTAND HOWYOURE BILLED

    1

    Note: your electricity bill may or may not refectall the charges outlined here sometimes

    charges may be bundled.

    A.ENERGY CHARGES(kWh)

    BASIC TERMS (UNITS):

    Kilowatt-hours (kWh)

    Electricity/Commodity Charge

    Global Adjustment

    Wholesale Market Services

    Debt Retirement

    SSS Administration

    Customer Charge*

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    TALK TO YOUR UTILITYI you have questions about how your

    bill is calculated or dont understandthe cost breakdown, talk to your

    local utility. They can explain your

    demand and energy charges and

    confrm whether youre paying the

    market price or electricity.

    A Guide or Business 3

    Distribution*: This rate, regulated by

    the OEB, covers the cost o delivering

    electricity rom the transmission

    system to your business. The charges

    go to your local utility to build and

    maintain the distribution lines, towers

    and poles.

    Transmission*: These regulatedcharges are required to cover the

    capital and operating costs o

    Ontarios high-voltage electricity

    grid. These costs are submitted

    by transmitters (e.g. Hydro One)

    to the OEB or regulatory approval.

    They include two components:

    Transmission Connection: Your

    utility is connected to the transmis-

    sion system and the electricity has

    to be transormed to lower voltages

    beore your business can use it. This

    charge covers the cost o doing this.

    Transmission Network: This covers

    the cost o operating and maintain-

    ing the towers, wires and other

    equipment used to deliver electricity

    rom where its generated to your

    local utility.

    Transormer Credit: Customers

    who own and maintain their own

    transormers that connect them to

    the power grid receive this credit.

    The rate is based on peak demand,

    and is typically set at $0.60/kW.

    Power Factor: Power actor doesnot typically appear as a line item

    on your bill unless your acility has

    low power actor which can result in

    higher distribution and transmission

    charges. Distribution and transmission

    charges are oten billed on either

    the metered kW or 90% of the

    metered kVA, whichever is greater.

    A number o industries have ound

    that correcting power actor can

    provide one o the astest paybackswhen making investments to reduce

    electricity costs. Your local utility can

    tell you i youre paying a penalty or

    power actor.

    Although each utility in Ontario

    uses a slightly dierent bill

    ormat and terminology or its

    customers, two basic principles

    are common to all. Your

    electricity costs are based on:

    A.TOTALCONSUMPTIONHow much electricity

    you consume,measured in kilowatt

    hours (kWh).

    B.PEAK DEMANDHow quickly you

    draw it rom the

    system, measured ineither kilowatts (kW)

    or kilovolt-amperes

    (kVA).

    B.DEMAND CHARGES(kW or kVA)

    BASIC TERMS (UNITS):

    Kilowatts (kW)

    Delivery-Distribution*

    Delivery-Transmission*

    Transmission Connection

    Transmission Network

    Transormer Credit

    Power Factor

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    4 Managing Your Electricity Costs

    Understanding Global Adjustment

    The Global Adjustment provides both adequate generat-

    ing capacity and clean energy or Ontario. It accounts

    or the dierence between the market price and the rates

    paid to regulated and contracted generators and orconservation and demand management programs. It

    covers the cost o building new plants, paying regulated

    rates to nuclear and hydroelectric baseload generators

    and greening the power system through conservation,

    demand response and cleaner generation.

    For most customers, Global Adjustment (GA) is charged

    on your total electricity use (kWh). The monthly rate

    varies depending on actors in the electricity market that

    shit the energy price higher or lower. A higher average

    monthly price exerts a downward pressure on money that

    needs to be recovered through GA which is illustrated inthe chart on page 5.

    Your utility charges one of three monthly rates for Global

    Adjustment depending on when you are billed. Each rate

    is set to recover the total monthly costs or GA. All the

    rates are posted to www.ieso.ca/globaladjustment .

    GA or large consumers

    Customers with a monthly peak demand over ve

    megawatts (MW) are designated as Class A consumers.

    A determination o Class A consumers is made by taking

    your peak demand or each month in the base period

    (see table on the right) and determining i the average

    of those peaks is over 5 MW.

    For example, i a Class A consumer is assessed to be

    responsible or one per cent o Ontarios peak demand

    or the ve highest hours o the base period they will be

    charged or one per cent o the total Global Adjustment

    costs through the subsequent billing period. Class A

    consumers receive an annual notication rom their

    utility with their percentage o peak demand, calledthe peak demand actor.

    Current peak demands and orecast demand inormation

    is available at www.ieso.ca/peaktracker.

    Evaluate a retail contract

    I you sign a retail contract it only applies to the commodity

    portion o your bill (the market price). All other charges

    on your bill, including Global Adjustment will continue

    to apply.For low-volume consumers paying the Regulated Price

    Plan (RPP), Global Adjustment is actored into the RPP

    rate. I you sign a retail contract, you will see two line

    items on your bill: one or the price agreed to under the

    contract and a separate line or the Global Adjustment.

    I you are considering a retail contract, understand

    your demand prole so that you can weigh the most

    cost-eective option and determine whether to contract

    or all or part o your load. Also, make sure to compare

    historical market prices against the contract price and

    account or the Global Adjustment. Ask questions and

    compare oers beore signing a contract. For a detailed

    list o questions to ask, visit www.ieso.ca/retailers.

    1 UNDERSTAND HOW YOURE BILLED (CONTINUED)

    TIMELINES FOR THE BASE PERIODAND THE BILLING PERIOD

    Real-time inormation on when Ontarioelectricity demand is at its highest is available at:

    www.ieso.ca/peaktracker

    BASE PERIOD ADJUSTMENT PERIOD

    Peak-setting period Billing period

    May 1, 2011 to July 1, 2012 to

    April 30, 2012 June 30, 2013

    May 1, 2012 to July 1, 2013 to

    April 30, 2013 June 30, 2014

    May 1, (Year X) to July 1, (Year X+1) to

    April 30, (Year X+1) June 30, (Year X+2)

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    A Guide or Business 5

    AVERAGE ELECTRICITYPRICES PLUS GLOBALADJUSTMENT

    The market price o electricity

    plus Global Adjustment orms the

    commodity portion o your bill.

    Average Ontario Energy Price

    Global Adjustment

    0

    1

    2

    3

    4

    5

    6

    7

    8

    2012201120102009200820072006

    Controlling our

    energy costs is

    important: when

    we see a high hourly

    electricity price,

    we send a notifcation

    to all o our

    acilities to curtail

    consumption.

    Alex Savu, Energy Manager,

    CFB Borden

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    6 Managing Your Electricity Costs

    Interval meters track

    usage hourly

    For market rate customers, interval

    meters are the only way to takeadvantage o fuctuations in price.

    Interval meters track how much

    electricity you use on an hourly basis

    or in some cases, 15 minutes. Having

    an interval meter means your utility

    charges the Hourly Ontario Energy

    Price (HOEP) for electricity based on

    your usage or each hour.

    Businesses without interval meters

    pay a weighted average o the hourly

    price which is based on the consump-

    tion patterns o similar consumers in

    your area, rather than just your own.

    I your electricity use is airly consis-

    tent 24 hours a day, or i you use more

    electricity during o-peak hours, its

    likely you can reduce your costs by

    installing an interval meter. Your localutility or an energy consultant can

    help you determine whether it may

    be advantageous to purchase one.

    Get the details on your

    demand

    Demand proles are like a ngerprint,

    which details the characteristics o

    your companys electricity use over

    time. They are important tools to helpunderstand your companys electricity

    use patterns and how to manage them

    more eectively.

    By looking at your demand prole,

    you will see what times o day you

    use electricity, how much you use

    and when your peak demand occurs

    each month. Understanding whenyour business sets a demand peak

    can help determine which equipment

    or processes could be shited in order

    to lower demand charges this could

    comprise up to 30 per cent o your

    total bill. You can also determine

    whether there are ways to avoid using

    electricity at the most expensive times

    of the day. Your local utility or an

    energy consultant can provide you

    with data and inormation to create,view and use your demand prole.

    Understanding how much energy you use and when

    you use it can reveal cost-saving opportunities.

    KNOW WHERE YOUSTAND TODAY

    2

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    Energy management

    starts with under-

    standing how and

    when you currentlyuse electricity. Then

    you can fnd ways

    to reduce it.

    Dipal Patel, Energy Manager, CBRE Limited

    A Guide or Business 7

    AVERAGE HOURLYCOST TO USE 1 MW OFELECTRICITY IN 2012This example compares the cost o

    consuming 1 MW during the three

    eight-hour shits.

    $50

    $60

    $70

    $80

    $90

    12am4pm8am

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    8 Managing Your Electricity Costs

    INVEST IN AN ENERGYMANAGEMENT PLAN

    3

    Understanding your businesss

    technical systems and how

    your employees operates them

    are two o the keys to identiyingopportunities to use electricity

    wisely and reduce your electric-

    ity costs. Outlining this inorma-

    tion in an ocial plan helps

    your employees understand

    what changes need to be made

    and why. It also helps you track

    your progress, cost savings and

    payback on investments in

    energy eciency over time.

    The ollowing eight steps provide

    a simple, systematic approach to

    understanding how your business

    uses electricity, what infuences costs,

    how you can use less and how to

    chart your success.

    Step 1: Understand your

    Energy Costs

    Knowing the factors on your bill that

    inuence your demand (kW or kVA)

    and energy (kWh) costs provide insight

    to the steps you can take to reduce

    those costs.

    Step 2: Monitor and

    Target

    Comparing monthly data can help you

    determine how energy consumption

    at your acility varies over time. For

    example, comparing energy consump-

    tion against production can help you

    determine energy costs per unit o

    production as a means o assessing

    potential savings opportunities.

    Step 3: Understand When

    Energy is Used

    The cost o electricity is infuenced by

    when its consumed. Your companys

    demand prole shows your energy

    use patterns information which is

    essential i youre considering changes

    to lower demand, or, i you have an

    interval meter, to take advantage o

    times o day or month when electricity

    prices are lower.

    Step 4: Understand Where

    Energy is UsedIdentiy equipment that draws the

    most power. I you improve its

    eciency, you will see a bigger

    reduction in your electricity costs.

    An energy audit provides a useul,

    detailed breakdown o how much

    electricity is consumed in your acility

    and where.

    Having an energy management plan helps

    you to identiy goals and systematically work

    to achieve them.

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    A Guide or Business 9

    Step 5: Eliminate Waste

    Energy waste can appear in many

    orms including excess time, volume,

    pressure and temperature. In order

    to realize energy savings opportuni-

    ties, its important to match the

    energy your business actually uses

    to what is really needed. Once theserequirements are established, elimi-

    nating waste becomes an eective

    cost-savings tool.

    Step 6: Maximize Eciency

    The condition o your companys

    equipment and operating conditions

    can have a signicant impact on

    potential energy savings. Consider

    changing the way you operate,

    maintain existing equipment, or

    investing in more energy-ecient

    technology. While some operational

    changes can have relatively low or

    no implementation costs, investments

    in equipment upgrades or retrots

    may have a shorter payback period

    than you would think and can lead

    to permanent long-term savings.

    Step 7: Optimize the

    Energy Supply

    Once you have reduced your

    requirement or energy, you may

    consider supply-side alternatives to

    meet your energy needs such as heat

    recovery, cogeneration and renewable

    generation options like wind, solar

    or biouels.

    Step 8: Monitor your

    progress, share the results

    Charting your progress over time helps

    you share these successes with sta

    and encourage them to keep looking

    or ways to lower electricity costs.

    Consider creating an operational

    schedule and maintenance plan that

    takes advantage o opportunities to

    reduce electricity costs.

    By analyzing the energy use o all our

    buildings, we can identiy opportunities

    to decrease our energy consumption,

    which in turn decreases our overall

    carbon ootprint.

    John Lucic, National Director of Energy Management, Revera Inc.

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    10 Managing Your Electricity Costs

    Making decisions on potential energy savings initiatives

    is easier when you combine your demand prole with

    electricity pricing trends.

    Understanding how electricity prices vary can help

    you manage electricity costs. Simply put, i you have

    an interval meter, using less electricity at times when

    the price is high can cut costs considerably.

    Factors that aect the electricity price

    What inuences uctuations in electricity prices?

    Electricity acts like any other commodity where price

    depends on supply and demand but unlike material

    goods electricity cannot be stored.

    When demand for electricity is high, more generation is

    needed. This often drives up the cost of power. Weather

    plays a big actor in electricity demand. Think about

    hot summer aternoons when chillers are running ulltilt, and industrial production is at its peak. In Ontario

    each degree over 16 degrees Celsius creates an additional

    280 MW of electricity demand, which is like adding a

    city the size o Burlington to the grid.

    Prices tend to be lower overnight and on weekends when

    power demand is typically lower. Conversely, the price o

    electricity can peak in the late aternoon or early evening

    as people arrive home rom work.Supply is determined by how much generators can

    produce. Certain power sources are more expensive to

    run than others. These higher-cost generators only run

    when demand is high relative to available supply.

    Hourly price trends

    For most o the year, electricity prices tend to be higher in

    the aternoon, particularly between 4:00 p.m. and 7:00

    p.m. Prices are usually lowest on weekends and overnight,

    between 11 p.m. and 7 a.m.

    I you have an interval meter, shiting operations to

    cheaper times o the day, or testing back-up generation

    during high-priced times, will save money. Running

    operations overnight can reduce your commodity costs

    by more than 20 per cent.

    CONTROL YOURELECTRICITY USE

    4

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    A Guide or Business 11

    Tracking weather can help to lower costs

    One o the most important actors aecting electricity pricesis weather. Ontario sees its highest electricity demands in

    the summer because o air conditioning use, especially

    during periods o high temperatures and humidity.

    The chart below shows electricity demand during the

    highest peak day o 2012. From noon until 8pm, Ontario

    used more than 24,000 megawatts (MW) of electricity.

    The electricity price during that time was 13.2 cents/kWh.

    Thats almost our times higher than the average electricity

    price in July. Tracking weather patterns and using electricity

    wisely during those times can save you money.

    In winter months, electricity patterns change. More lighting

    is required because o shorter days, so electricity use is

    noticeably higher ater the sun sets.

    Hourly electricity demand is tracked and forecasted

    throughout the day at www.ieso.ca/demand. For business

    customers paying the hourly price o electricity, it is

    important to recognize potential impacts on price when

    demand is high. When electricity demand exceeds the

    orecast, it can also push prices upward as more generation

    is required to meet higher levels o demand.

    The Region continues to track

    our energy usage and compare

    it to market prices. Since 2006,

    the Region has saved $21 million

    rom our total energy budget.

    Steve Hall, Director o Corporate Energy,

    Region o Peel

    ELECTRICITY DEMANDIN JULY 2012

    July 17: Humidex 45C

    July Weekdays: Avg Temp 24C

    12000

    16000

    20000

    24000

    28000

    9:00pm5:00pm1:00pm9:00am5:00am1:00am

    MW

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    12 Managing Your Electricity Costs

    Reduce your peak demand

    You can use the same amount of energy overall and

    still reduce your electricity bill. How? All you need to

    do is manage your businesss electricity demand and

    draw the same amount o electricity rom the systemat a slower rate.

    Demand charges cover the cost o the size and type o

    wires and equipment needed to get the electricity to

    your business. Drawing a lot o electricity at one time

    creates a higher demand. Higher demand requires

    additional wires and transormers that can supply

    electricity at the rate you draw it without overloading.

    So, the higher your monthly peak demand, the higher

    your bill.

    Your electricity delivery charges for the month are basedon one 15-minute or 60-minute peak. I you can reduce

    your peak, you will also reduce your delivery charges.

    Your local utility has conservation and demand

    management programs to assist in reducing or shiting

    the peak demand o your acility. Contact your local

    utility or more inormation.

    Conserve and eliminate waste

    You might be surprised to discover that making changes

    to use less electricity or using electricity wisely wont

    cost you much or anything at all, and can lead to

    considerable savings.

    Regular equipment maintenance or turning o equipment

    not in use wont cost much but can shave up to ve per

    cent o your electricity bill. For example, a grocery store

    in Burlington took a closer look at how it used electricity.

    When they examined the stores demand they noticed that

    overnight electricity use dipped much lower on weekends.

    They realized that employees were turning o ewer lights

    during the week than on weekends. Changing the closing

    procedures on weekdays was easy and ree, and the

    electricity savings added up.

    4 CONTROL YOUR ELECTRICITY USE (CONTINUED)

    A DEMAND PROFILECAN POINT TO SAVINGSOPPORTUNITIESMore savings were obvious once

    the electricity use prole showed

    that more lights were being

    turned o on weekend nights

    than on weekdays.

    0

    100

    200

    300

    400

    500

    SSFTWTM

    kWh

    MAKE OPERATIONAL CHANGES ANDSAVE THREE WAYS: USE ELECTRICITYWHEN PRICES ARE LOWER, REDUCE

    YOUR PEAK DEMAND, AND USE LESSELECTRICITY OVERALL.

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    A Guide or Business 13

    In November 2008, the Art Gallery

    o Ontario (AGO) completed a

    our-year construction project that

    added approximately 100,000

    square eet o gallery space to its

    existing 486,000-square-oot oor

    plan. The design o the new gallery

    space had distinct architecturalcharacteristics that needed to be

    integrated into the gallerys

    operations.

    Gary Bridgens, the Deputy Director

    o Projects and Operations, met

    these challenges head on with a

    plan to reduce energy by changing

    the way in which the gallerys

    heating and cooling systems

    worked. The plan was achieved

    through a combination o

    consumption reduction and pricing

    strategies. It saved the gallery

    over hal a million dollars in

    electricity costs during the frst

    year o implementation.

    Part o their plan investigates thepotential o LED and other efcient

    lighting technologies. Its a process

    that didnt start overnight. Since

    2003, Mike Pero, Manager o

    Plant Operations, has created a

    lighting inventory which tracks the

    wattage and type o the thousands

    o lights within the Gallery and the

    hours that they are on. The rate o

    return is king, Pero notes.

    We need to show that a lighting

    project will guarantee results

    beore we start. Last year,

    their lighting retrofts saved over

    38,000 kWh o electricity whichhelped the AGO qualiy or an

    incentive payment through the

    gallerys local distribution

    company, Toronto Hydro.

    The plan includes upgrading

    technology and revising

    operational processes in tandem.

    Pero notes that to get capital

    unding or energy management

    initiatives, we need to build

    credibility through results.

    Bridgens adds, Its also credibility

    in terms o our most important

    stakeholder: the gallery patrons.

    Energy management is not onlyabout reducing our consumption,

    but about ensuring that our

    patrons have a great experience

    at the AGO.

    Read the ull case study at:

    http://ieso.ca/imoweb/busi-

    nessIndustry/bi_profle-ago.asp

    Putting EnergyManagement onPermanent Displayat the AGO

    YOUR PEAK DEMANDDETERMINES YOURDELIVERY CHARGES FORTHE MONTH

    Seeing when your peak demandoccurs will give you an opportunity

    to see what equipment or processes

    you can reduce.

    0

    200

    400

    600

    800

    kW

    Mon Tue Wed Thu Fri

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    14 Managing Your Electricity Costs

    Operating under the name E=MC2,

    the St. Marys Cement Energy

    Management and Conservation

    Committee developed a 68-item

    action plan to direct the plants

    eorts to reduce its energy

    consumption and costs.

    The multi-disciplinary committee

    was started by Fabio Garcia,

    Plant Manager, and Jim Storey,

    Electrical Maintenance Manager

    or the Bowmanville operations.

    Both men recognized there was

    room or improvement in the way

    St. Marys managed its energy

    consumption. In early 2006,

    Garcia and Storey assembled a

    cross-unctional team to ensure

    all aected business units had

    input into the committees

    mandate, direction and activities.

    Already, those activities have

    delivered $870,000 in energy

    savings. Some o the lowest cost

    projects yielded the biggest

    paybacks, Garcia says. The

    single most important change we

    made was rescheduling some o

    our operations to o-peak hours.

    This concept, known as load

    shiting, has saved the company

    hundreds o thousands o dollars.

    Were glued to the IESO website,

    Garcia continues. Were con-

    stantly monitoring the wholesale

    price o electricity to plan our

    operations. And while its not the

    easiest way to manage a plant, its

    defnitely the most economical.

    In addition to using the price o

    electricity to guide daily opera-

    tions at the Bowmanville plant,

    control room operators also rely on

    alarms set to go o i the plant

    approaches pre-determined

    demand thresholds. By lowering

    its instantaneous demand or

    electricity by 500 kilowatts (kW),

    St. Marys has been able to trim

    almost $2,000 rom its monthlyelectricity bill.

    Read the ull case study at:

    www.ieso.ca/imoweb/businessIn-

    dustry/bi_profle-st-marys-

    cement.asp

    St. Marys Cement: A 360-Degree Focus onEnergy Management

    Consider sel-generation

    Generating your own electricity might be an option or

    your business. Wind turbines, solar panels, biomass/biogas

    systems or natural gas generators can be used to oset

    some or all o your electricity costs.

    I your on-site generation can be regulated at dierent

    times o the day, you could use it to replace what you

    would normally consume rom the power system during

    your businesss demand peaks or when the price o

    electricity is high. It can be more economic to generate

    your own power during these times. An added benet

    is that you can have back-up power in the event o

    power outages.

    Engage sta in the process

    Day in and day out your employees operate machinery,

    control your building management system and turn on

    computers, lights, etc. Engage employees in the energy

    management process so that they understand the impactthat energy costs have on your organizations bottom line.

    Engaging sta in the process means that they will be

    more likely to use electricity eciently and presents

    opportunities or ongoing training and collaboration

    between business units. That can lead to employees that

    are more likely to share ideas about how energy use can

    be reduced in their area.

    4 CONTROL YOUR ELECTRICITY USE (CONTINUED)

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    A Guide or Business 15

    Some o the lowercost projects yielded thebiggest paybacks.Fabio Garcia, Plant Manager, St. Marys Cement Bowmanville

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    16 Managing Your Electricity Costs

    Keith Wernham, maintenance person at Jones

    Packaging changes a fuorescent light bulb in

    the manuacturing acility. The fuorescent basedlighting installed replaces the original halide lighting,

    decreasing Jones consumption o electricity by

    approximately 600,000 kWh per year.

    Taking advantage o incentive programs can

    go directly to your bottom line.

    CASH IN ONINCENTIVES

    5

    Beore you investigate potential

    retrots to electrical equipment in

    your acility, check to see i there

    are any incentive programs that can

    help to reduce the cost o the project.

    Most incentive programs require

    applications to be submitted beore

    the project is started.

    Also be sure to investigate demand

    response programs. They can help

    your bottom line, and also improve

    the reliability o Ontarios power

    system by helping to reduce the

    strain on the system during times

    o high demand.

    Energy Conservation

    The Ontario Power Authority (OPA)

    oers several province-wide energy

    eciency programs that provideunding to retrot current electrical

    equipment and to perorm energy

    audits. There are also incentives

    or new construction projects that

    exceed energy eciency standards

    in the Ontario Building Code. For

    more specic program inormation

    or your business or home, visit

    www.saveONenergy.ca

    Your local utility is the delivery agent

    or these province-wide programs,

    and may also oer specic programs

    to address local issues. Your utility

    can also oer insight into other

    programs and tell you what programs

    are available in your area. Contact

    your LDC or more inormation:

    www.ieso.ca/ndutility

    Natural gas providers oer a

    number o conservation and demand

    management programs designed to

    increase overall energy eciency.

    Contact your natural gas provider or

    more inormation on these programs,

    and how they can work or you.

    Demand Response

    The OPA oers demand response

    programs that pay business, industrial

    and institutional consumers to reduce

    energy when electricity prices are

    high or when there are high volumes

    o demand on the electricity system.

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    FOR MORE INFORMATION ON:

    Your local distribution company

    www.ieso.ca/ndutility

    Electricity prices

    www.ieso.ca/business

    Retail electricity contractswww.ieso.ca/retailers

    Province-wide conservation programs

    www.saveONenergy.ca

    Federal government Oce o Energy Eciency

    www.oee.nrcan.gc.ca

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    Independent Electricity System Operator

    655 Bay Street, Suite 410

    P.O. Box 1

    Toronto, Ontario M5G 2K4

    www.ieso.ca/business

    Phone: 905.403.6900

    Toll-ree: 1.888.448.7777

    Fax: 905.403.6921

    E-mail: [email protected]