OPA's Demand Response 3 Program Activated Yesterday: First Use of Year-round Conservation Strategy

    TORONTO, Aug. 19 /CNW/ - The Ontario Power Authority's (OPA) Demand
Response 3 (DR3) program was activated or the first time yesterday, saving
three megawatts (MW) from the provincial electricity system; the program went
live on August 1st and is expected to grow in participation rapidly. At the
same time, peaksaver(R) was also activated provincewide for the third time,
saving a further 45 MW.
    DR3, a contract-based program, "sheds" electricity demand from industrial
and commercial enterprises. It pays participants for significantly turning
down their electricity at pivotal periods when Ontario's electricity system is
under significant strain. DR3 therefore provides an economic benefit to all
ratepayers by alleviating the need to import power or to engage in other, more
expensive measures. The program will make a further contribution to managing
Ontario's electricity demand throughout the balance of 2008 and in years to
come as participation increases, says Paul Shervill, OPA Vice President,
Conservation and Sector Development.
    In this first activation, only aggregators (entities which can combine
many small loads to reach a minimum of 25 MW) participated. In Ontario, a
total of eight aggregators are participating in DR3 at this time; they combine
the individual loads of commercial and industrial companies with a peak demand
greater than 50 KW. DR3 is also accessible to eligible direct participants
(companies that can shed 5 MW or more); they are expected to participate in
future activations.

    DR3 is complemented by two other demand management programs:

    -  DR1, a voluntary year-round program that encourages shedding peak
       demand that was launched in 2006 and has been activated continuously
       since then, and
    -  peaksaver(R), a residential demand reduction program for homeowners
       and small businesses; it was first activated provincewide on July 8th.

    Additionally, DR2, a contract-based program that shifts load from a peak
period of demand to a non-peak period is also under development.
    For more information on these programs, visit the OPA website
(www.powerauthority.on.ca) and the Every Kilowatt Counts for Business website:

    The OPA is responsible for ensuring a reliable, sustainable supply of
electricity for Ontario. Its four key areas of focus are: Planning the power
system for the long term, leading and co-ordinating conservation initiatives
across the province, ensuring development of needed generation resources and
supporting the continued evolution of the electricity sector.

    (R) Trademark of Toronto Hydro Corporation. Used under licence.

                      Backgrounder on Demand Response 3

    Demand Response 3 (DR3) is a contract-based program that "sheds"
electricity demand from industrial and commercial enterprises. It pays
participants for significantly turning down their electricity at pivotal
periods when the system is under significant strain.
    Participants in DR3 must be available 1,600 hours annually to receive
standby and subsequent activation requests to reduce their demand for
electricity for four consecutive hours. Participants will generally have at
least 2.5 hours advance notice of a need for demand response. Participants can
elect to provide demand response either 100 or 200 hours per year; the timing
of the reductions will be determined by an operational "trigger" with enough
time to respond and meet their reduction obligations.
    The program pays participants both for being available and for reducing
demand, but it has "offsets" to these payments when a required commitment to
reduce demand is not met.
    To increase its value as a cost-effective demand management tool, the DR
3 program is offered through specific regions of Ontario, which determine
eligibility and level of compensation.
    Ontario's Independent Electricity System Operator (IESO) is responsible
for determining when DR3 is activated-subject to a set of protocols
established by the OPA. Technically, the IESO "dispatches" DR participants
(direct and aggregators) to reduce their electricity use based on a dispatch
formula. This formula addresses the need for either a specified provincial
"Supply Cushion" or for "Reliability" which addresses local area constraints.
    Activation of DR3 is also based on seasonal allocations with a breakout
of potential deployment according to this formula: winter, 10 percent; spring,
15 percent; summer, 60 percent; fall, 15 percent. During the summer, DR3 may
be activated between 12 noon and 9:00 p.m.; for all other seasons, it may be
activated between 4:00 and 9:00 p.m.
    Additional technical detail on the dispatch methodology is available from
the OPA website at:
    In addition to providing the dispatch signal to DR 3 participants, the
IESO is also responsible for settlement and for measurement and verification
(M&V) services.
    For complete details on the DR3 program, visit the relevant section of
the OPA website at:

For further information:

For further information: Ontario Power Authority, (416) 969-6307

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