Conservation First Framework Extension

The province offers a suite of conservation and demand management (CDM) programs under the Save on Energy brand, which provide incentives and tools to help customers manage their electricity usage and costs. CDM programs also defer or offset the need for new generation and transmission infrastructure.

These programs are governed by frameworks, which are administered by the Independent Electricity System Operator (IESO) and establish the rules, guidelines and funding source governing CDM program delivery.

On March 21, 2019, the government terminated the CDM Framework in place at that time, termed the Conservation First Framework (CFF), and replaced it with a suite of streamlined and centralized programs under the 2019-20 Interim Framework. This action was forecasted to save electricity ratepayers up to $442 million between 2019 and 2022.

Following the termination of the CFF, the IESO and local distribution companies (LDCs) continued to manage surviving contractual agreements that participants had entered into for CDM projects under this Framework. These projects were required to be completed by December 31, 2020.

As a result of the 2019 Novel Coronavirus (COVID-19) outbreak, many CDM projects under CFF have been delayed due to work from home policies, the mandatory closure of non-essential construction projects and supply chain delays.

Customers, LDCs and stakeholders, including the Electricity Distributors Association (EDA), Ontario Energy Association (OEA) and the Ontario Chambers of Commerce (OCC) have requested a six-month extension to completion deadlines for CDM projects under the CFF to offset the COVID-19 related delays.

In order to respond to customer concerns and ensure businesses and institutional customers, including hospitals, schools and community centers, are not disadvantaged by the COVID-19 outbreak, the government has issued a Directive to the IESO to enable a six-month extension of certain project deadlines under the CFF to June 30, 2021.

The IESO will work with LDCs to implement this extension for participating customers.

Our government recognizes that electricity CDM programs help customers manage their energy costs, lower overall electricity system demand and are an important contributor to the economy in Ontario. The government is developing a proposal for a new CDM Framework that would, if approved, be launched on January 1, 2021, immediately after the term of the current Interim Framework ends.