Time-Of-Use Presentation

Town Council Meeting

May 7th, 2012

Why Smart Meters?

• Ontario has introduced smart meters—along with a “time-of-use” electricity price structure—to help customers manage their electricity costs, while helping Ontario to build a more efficient, more environmentally sound electricity system.

• Between now and 2025, Ontario will replace about 80 per cent of its electricity system. This will be accomplished in a number of ways:

– building new generating facilities,

– refurbishing current facilities (where that makes economic sense), and

– investing in conservation and energy management tools so that we require less new electricity generating capacity.

What is a Smart Meter?

• Conventional meters used an electromechanical technology and they were only capable of measuring how much electricity was used in total from one reading to the next. Unlike smart meters these meters had to be read manually.

• A smart meter is an electronic meter that stores electricity consumption by time or when that consumption occurred.

• In Ontario, smart meters will record electricity consumption on an hourly basis.

• In Grimsby this information will be reported via a wireless technology.

Why is it important to know when electricity is used?

• Knowing when electricity is used allows the consumer to adjust their usage pattern to take advantage of “time-of-use” (TOU) electricity rates—and that will give customers a new way to manage and potentially reduce costs.

• Prior to TOU, customers had very little incentive to manage electricity usage because electricity prices remained the same no matter what the time of day—simply because our meters could not report when electricity was used.

• TOU rates will vary throughout the day—from more expensive during times of on-peak demand (when we tend to use a lot of electricity) to less expensive during the off-peaks. With TOU rates, customer choices about how and when they use electricity can have a positive impact on the electricity bill.

How do Smart Meters Work?

Benefits of Smart Meter Infrastructure

• Provides customers with: Tools to see their consumption patterns and make choices about shifting consumption from

peak to off peak periods The opportunity to reduce their hydro costs by conserving or shifting their usage pattern

from on-peak to mid-peak or off-peak and from mid-peak to off-peak

• Provides Grimsby Power the opportunity to leverage the data from the meters: Implement outage management systems – an intelligent power restoration system Monitor transformer and feeder loading – a proactive approach to condition asset

assessment Monitor the customers voltage level – a proactive approach to system maintenance Implement active and intelligent conservation programs such as residential demand

response programs

Benefits of Smart Meter Infrastructure

• Provides the Province a better way to manage

transmission infrastructure by: Shifting demand from current peak periods Taking advantage of conservation by lowering consumption

and demand

• Creates a positive impact on the environment by: Phasing out coal fired generation Reducing the need to build new transmission infrastructure –

fewer rights of way

What are Time-of-Use Prices?

• TOU prices are prices that vary throughout the day—better reflecting the way electricity prices work in the electricity market.

• Depending on the demand and the availability of supply in the electricity market; prices rise and fall over the day and tend to drop over night.

• TOU rates will vary—depending on the time of day, the day of week (week or weekend, and holidays) and the season (summer or winter).

Time-of-Use Price Periods

Off-Peak: (When demand for electricity is

lowest)

Mid-Peak: (When demand for electricity is

moderate)

On-Peak: (When demand for electricity is

highest)

Time-of-Use Prices

• Time-of-use prices reflect the fact that the cost to provide electricity changes throughout the day, depending on the demand for energy

• These prices are reviewed every six months (May and November) by the Ontario Energy Board (OEB) and are subject to change.

• There are three different time of use price periods. The

following are the prices for those periods as of May 1st 2012: 6.5 cents/kWh for off-peak hours

10.0 cents/kWh for mid-peak hours 11.7 cents/kWh for on-peak hours

Load Profile/Pricing

• The number of kWhrs consumed in each hour in each TOU price period

• The OEB indicates that the average residential customer consumes: – 64% - Off-Peak – 6.5 cents/kWhr

– 18% - Mid-Peak – 10.0 cents/kWhr

– 18% - On-Peak – 11.7 cents/kwhr

Energy Costs

Total Energy

Cost ($)

Difference from

Average ($)

66.20$ $ (1.72)

64% 18% 18% 539 152 152 35.03$ 15.16$ 17.73$ 67.92$ Average

64% 21% 15% 539 177 126 35.03$ 17.68$ 14.78$ 67.49$ (0.43)$

64% 26% 10% 539 219 84 35.03$ 21.89$ 9.85$ 66.78$ (1.15)$

67% 15% 18% 564 126 152 36.67$ 12.63$ 17.73$ 67.04$ (0.88)$

72% 10% 18% 606 84 152 39.41$ 8.42$ 17.73$ 65.56$ (2.36)$

70% 15% 15% 589 126 126 38.31$ 12.63$ 14.78$ 65.72$ (2.20)$

76% 12% 12% 640 101 101 41.60$ 10.10$ 11.82$ 63.53$ (4.40)$

82% 9% 9% 691 76 76 44.88$ 7.58$ 8.87$ 61.33$ (6.59)$

61% 18% 21% 514 152 177 33.39$ 15.16$ 20.69$ 69.24$ 1.31$

58% 21% 21% 488 177 177 31.75$ 17.68$ 20.69$ 70.12$ 2.20$

52% 24% 24% 438 202 202 28.46$ 20.21$ 23.65$ 72.32$ 4.40$

41% 24% 35% 345 202 295 22.44$ 20.21$ 34.48$ 77.13$ 9.21$

30% 35% 35% 253 295 295 16.42$ 29.47$ 34.48$ 80.38$ 12.45$

25% 40% 35% 211 337 295 13.68$ 33.68$ 34.48$ 81.85$ 13.93$

Load Profile (%)

Consumption by

Period (kWhrs)

Cost by Period ($)

Regulate Price Plan (RPP)

Sample Bill

Implementation Schedule

• TOU rates will apply to consumption starting on May 1, 2012

• First TOU invoices will be issued in June 2012

TOU Web Presentment Tool

MyHydroEye

• Tools to monitor and manage consumption

• On line access to consumption information

• Set up personal usage alerts

• Integrated with smart phones

www.grimsbypower.com

OEB Bill Calculator

OEB Bill Calculator

Conservation

10 Smart Meter Lane

IESO

Websites to Learn More

Electricity Pricing and Rates http://www.ontarioenergyboard.ca/OEB/Consumers

Smart Meter Information http://www.energy.gov.on.ca/en/smart-meters-and-tou-prices/

Residential and Commercial Conservation Program Information https://saveonenergy.ca/

Independent Electricity System Operator

http://www.ieso.ca/