On December 29, 2016, the Ontario Energy Board posted the Independent Electricity System Operator’s (IESO) 2015 Annual Conservation and Demand Management (CDM) Results Report (the Report). The Report outlines the 2015 CDM program results, including all electricity savings as a result of the various CDM programs delivered in 2015, participation levels and spending figures.

The OEB notes that in total, electricity distributors achieved 1.1 TWh of electricity savings in 2015 (or 16% of the overall 2015-2020 target of 7 TWh). Individual electricity distributor performance was also generally strong during 2015.

The OEB also notes that the 2015 year was a transition year for electricity distributors between the 2011 to 2014 CDM term (Legacy Framework) and the new 2015 to 2020 CDM term (Conservation First Framework). Based on its review of the Report, the OEB has concluded that the IESO and electricity distributors have been effective in launching the first year of the new 6-year Conservation First Framework.

Pursuant to a March 26, 2014 directive, the OEB is required to annually review and publish the verified results of each electricity distributor’s CDM efforts. The OEB is also required to report on the progress of electricity distributors in meeting their CDM requirement to make CDM programs available to customers in their respective licensed service area. Under a March 31, 2014 directive, the IESO is responsible for coordinating, supporting and funding the delivery of CDM programs by electricity distributors, including evaluating and verifying all program results between 2015 and 2020.

Electricity distributors were required to submit a 2015-2020 CDM plan to the IESO for review by May 1, 2015. The IESO has informed the OEB that it has approved 2015-2020 CDM plans for all licensed electricity distributors and that each electricity distributor has entered into an Energy Conservation Agreement (ECA) with the IESO. As a result of the ECAs, CDM programs are available to customers in all service areas throughout the province.

The Report found that the majority of electricity distributors (54) either met or surpassed their targeted 2015 CDM savings. Of these electricity distributors, 16 more than doubled their 2015 goals. Only 8 electricity distributors achieved less than half of their 2015 targeted savings. No electricity distributor fell below the minimum level of annual performance (4% of the overall 2015-2020 target) required by the IESO. Should an electricity distributor’s performance fall below the 4% annual performance threshold, administrative remedies will begin to be invoked by the IESO.

The OEB has said that it will continue to monitor progress under the CDM framework, including the IESO’s mid-term review that must be completed by June 2018.