ICI – Class A or B

Hello – Every institution’s situation is unique, for Humber it made sense to stay on Class B this year due to significant reduction in consumption as a result of COVID-19.

Aman

Hello Lan,

Here at Lambton College we have decided to opt into Class B enrollment from July 1, 2020 to June 30, 2021. Class A was only cost effective if our overall energy consumption for our one main building, which was Class A eligible, was greater than or less than 7.5% compared to the last GA payment period. Presently, our electricity consumption this past April and May, compared to last year’s, has already dropped by about 20-60%/ month/ account.

I would also like to point out that our LDC gave us the option to amalgamate existing buildings on the same property line as our original Class A building, providing us the opportunity to have one global adjustment fee for 1 out of 7 buildings. After considering this situation, it was still more advantageous for us to have all of our buildings as Class B considering the forecasted decline in our electricity consumption.

Paul Cochrane

Echoing Aman’s comment, it depends on your PDF and how you will be/are operating during the pandemic. If you are seeing significant consumption reduction and believe you can maintain it, Class B likely makes sense (unless you did particularly well with your PDF last year). Even though analysis shows that Class A would be beneficial if we were operating under “normal” conditions, Seneca will be going Class B due to substantial reduction in consumption which we believe we can maintain. A good way of looking at it (which is now provided with Jupiter’s recommendation reports) is performing a sensitivity analysis showing the impact of changes in consumption and total GA costs. Here’s what Seneca’s looks like (Green = Class A favourable; Red = Class B favourable):

As shown above, if we can maintain a reduction of at least 10%, Class B should result in avoided costs.