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Cornerstone Hydro Electric Concepts

Lakeland Power Customers Stay Competitive

December 6, 2018

A three-pronged approach to help Lakeland Power’s industrial customers reduce electricity costs: Maximizing Class A registration, Reducing Global Adjustment Charges, and adding Resiliency.

December 6, 2018, Bracebridge, ON – During the past year, Lakeland Power has been reaching out to its industrial customers to help them implement energy saving initiatives that enhance their bottom lines and help them remain competitive.

“Our local businesses are an essential part of our community,” said Vince Kulchycki, Chief Operating Officer, Lakeland Holding Ltd. “We want to do everything we can to keep their costs to a minimum and ensure they remain as strong, profitable members of our community.”

The support they have offered is multi-levelled and is designed to meet the specific needs of each of their customer’s facilities.

Class A Registration
Lakeland staff went door to door ensuring all eligible businesses registered as Class A customers with the Independent Electricity System Operator (IESO) last year when the minimum threshold was reduced to an average monthly peak electricity load above 1 MW or 500 kW for manufacturing. Class A customers include businesses that participate in the Industrial Conservation Initiative (ICI) program and who pay the Global Adjustment (GA) on their percentage contribution to the top five Ontario system peaks over a 12-month period. Some Lakeland customers saved over $60,000 per month by signing up for the Class A designation.

Reducing Load during Peak Times
Facilities can reduce the amount they pay on the Global Adjustment by reducing the amount of electricity they use during peak demand hours over the course of the year. For some this can be done through load shedding, that is turning off non-essential electrical loads during peak times. For others, their processes don’t allow for this kind of flexibility. For these facilities, Lakeland Holding Ltd. partnered with AMP Energy to provide energy storage systems that draw energy from the electricity grid during off-peak hours and use the stored energy to offset customer load during peak times.

“It’s all about reducing the amount of electricity being used during those four or five system peaks during the year,” said Kulchycki. “If we can divert their electricity load during that time and ideally bring their usage to zero, we can drastically reduce the amount they are paying for the Global Adjustment.”

Adding Resiliency
Once businesses have systems in place to reduce contributions at peak times, many were also interested in adding resiliency to their systems that would allow them more flexibility in responding to provincial peaks and provide them with backup during outages and power interruptions. Due to its geographic location and its dependence on supply from Hydro One, the Lakeland service area experiences a higher number of outages and interruptions than other areas in the province. A solution that has been adapted by several industrial customers has been the installation of efficient natural gas generators that will extend the time they can reduce their peak or transfer their entire operations to the generator in the event of a large storm.  Customers have the choice of signing a 10-year guaranteed savings agreement where Lakeland and Amp then covers the cost of the equipment, engineering and installation or customers can finance the project and retain 100 percent of the realized savings

“For some of our industrial customers even the smallest interruption comes at a huge cost through lost product and broken machinery,” said Kulchycki. “Having resiliency in their systems ensures they can continue operations regardless of whether there is an interruption in supply or an ice storm takes down the local feeder.”

This three-pronged approach is in addition to the extensive conservation support that Lakeland provides to its customer through the Save on Energy Incentives. Conservation staff have been busy helping local businesses install variable speed drives, LED lighting systems, energy efficient compressor systems, and new refrigeration systems among others.

“We look at the specific needs of the business and see how they can best benefit from the incentives that are available,” said Jennifer Montpetit, Advanced Planning and Communications, Lakeland Holding Ltd. “It’s all about supporting them to be as efficient and streamlined as they can and recognizing them as the important members of our community that they are.”

Lakeland Holding Ltd. is 100% municipally owned by: Bracebridge, Huntsville, Parry Sound, Burk’s Falls, Magnetawan and Sundridge. The Holding company has three subsidiary companies: Lakeland Power (electricity distribution), Bracebridge Generation (environmentally friendly electricity generation) and Lakeland Energy/Networks (Information Technology and Fibre to the Home & Business).

While respecting the natural environment, Lakeland Holding strives to Improve Customer Service and Product Offerings that Increase Profitability for Shareholder Dividend Distribution.

CHEC is a collaborative association for 17 small Local Distribution Companies in Ontario. By sharing experience, knowledge and resources CHEC helps its members remain as active members of their communities, deliver value to their shareholders, provide safe, efficient, and cost effective electricity distribution to their customers, and prepare for the energy future. The current members of CHEC are Centre Wellington Hydro Ltd., EPCOR Ontario, Grimsby Power, InnPower Corp., Lakefront Utilities Inc., Lakeland Power Distribution Ltd., Newmarket-Tay Power Distribution, Niagara–on- the- Lake Hydro, Orangeville Hydro Ltd., Orillia Power Corp., Ottawa River Power Corporation, Renfrew Hydro Inc., Rideau St. Lawrence Distribution Inc., Tillsonburg Hydro, Wasaga Distribution Inc., Wellington North Power Inc., and West Coast Huron Energy Inc.