OPA's Demand Response Programs Activated Twice This Week: Flexible, Year-round Conservation Resources Offer Real Value

    TORONTO, Sept. 4 /CNW/ - Demonstrating their value as a flexible energy
conservation resource, two Ontario Power Authority (OPA) Demand Response
programs were activated this week saving some 60 MW on each occasion.
    Demand Response 3 (DR3), a contract-based program which commits
industrial and commercial businesses to shed power demand at peak times, saved
15MW. Additionally, the province-wide residential peaksaver(R) program saved
45 MW in each use.
    DR3 went live on August 1st and is growing in participation rapidly-the
capacity under contract has increased by 12 MW since the last activation. The
program pays participants for turning down their electricity by a specified
amount when Ontario's electricity system reaches certain pre-established
targets. DR3 therefore provides an economic benefit to all ratepayers by
alleviating the need to import power or to engage in other, more expensive
    In this activation, commercial aggregators (companies which combine the
small loads of other businesses) and one larger direct industrial participant
took part. In Ontario, a total of eight aggregators are building portfolios
under the DR3 program at this time. DR3 is also accessible to eligible direct
participants (companies that can shed 5 MW or more).

    peaksaver(R), a residential demand reduction program for homeowners and
small businesses, was first activated provincewide on July 8th.

    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 firm contract-based program that "sheds"
electricity demand from industrial and commercial enterprises. The program
pays participants for turning down their electricity by a specified amount
when Ontario's electricity system reaches certain pre-established targets.
    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 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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