Peak Demand Factor and Capacity Based Recovery Amount for Class A

Each Class A customer's portion of the province-wide total Capacity Based Recovery Amount (Charge Type 1350) is calculated using their Peak Demand Factor.

Annually the IESO establishes the top five demand peaks for the preceding base period, following which each Class A customer's corresponding portion of peak demand is calculated based on their consumption during those five hours (coincident peaks) – this represents their Peak Demand Factor. For an explanation on how to calculate your Peak Demand Factor, see Global Adjustment and Peak Demand Factor.

How Class A customers are charged Capacity Based Recovery Amount

Each Class A customer's Peak Demand Factor is used to calculate monthly Capacity Based Recovery charges for the billing period during the adjustment period. This is done by multiplying the monthly Ontario-wide total Capacity Based Recovery Amount costs by the customer's Peak Demand Factor.

Actual Capacity Based Recovery Amount components

The following values represent the components of the Capacity Based Recovery Amount used by the IESO to calculate the province-wide preliminary total Capacity Based Recovery Amount:

  • Capacity Based Demand Response
  • Demand Response Pilot
  • Demand Response Capacity Obligation

2017 (in M$) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
(in M$)
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 
Demand Response
3.0 2.9 3.0 3.2 3.1 1.0 1.8 1.8 0.6 1.7 1.1  1.0
Demand Response
0.3 0.2 0.3 0.3 0.3 0.3 0.4  0.3
Demand Response Capacity Obligation            3.1 2.6 2.0 2.2 3.1  2.8  2.9
Total Capacity Based Recovery Amount  3.0 2.9 3.0 3.2 3.4 4.3 4.7 4.1 3.1 5.1  4.3  4.2

Example calculation of Capacity Based Recovery Amount

System-wide Capacity Based Recovery Amount costs for September 2016



Your Peak Demand Factor



Your Capacity Based Recovery Amount charge for September 2016