Hydro One — storage economics
General Service > 50 kW (demand billed) · Ontario. Global Adjustment dominates C&I electricity cost. Class A customers (peak demand ≥ 1 MW, or ≥ 500 kW in eligible sectors) are billed GA on their share of the five IESO coincident system peaks, making peak-hour dispatch the single largest BESS value driver. Class B customers see GA as a volumetric charge and monetise BESS mainly through LDC demand charges.
Canadian BESS Snapshot
Last verified: 2026-06-30- Utility
- Hydro One
- Rate class
- General Service > 50 kW (demand billed)
- Demand charge
- CAD $12.40 per kW-month
- Energy charge
- CAD $0.1040 per kWh
- Peak window
- Weekdays 11:00–17:00 (summer)
- Interconnection
- Typically 8–14 months (rural feeders longer)
- Incentives
- IESO demand response; GA Class A peak avoidance
- Effective date
- 2025-01-01
Example: 1,000 kW peak site
- Recommended system
- 300 kW / 850 kWh
- Annual demand charge savings
- $35,700
- Simple payback
- 9.2 yr
- IRR (10-yr)
- 1.8%