Second Extension of Conservation First Framework Deadlines

The first extension to CFF in-service deadlines is covered in ERO 019-2131. For further context on this information notice, please refer to the “Bulletin details” in ERO 019-2131.

As a result of the COVID-19 outbreak, in Summer 2020 it became clear that many CDM projects under the CFF had been delayed due to the mandatory closure of non-essential construction projects and supply chain delays. The government extended the in-service deadline by six months from December 31, 2020 to June 30, 2021, which provided the time needed for the majority of projects to complete. However, due to the continued challenges of the COVID-19 state of emergency and public health measures, a number of CFF CDM projects were still expected to not be able to complete by the June 30, 2021 in-service deadline.

The government continues to be responsive to customer concerns during these unprecedented times and supports businesses and institutional customers, including hospitals, schools and community centres. The government therefore issued a Directive to the Independent Electricity System Operator (IESO) on June 10, 2021, to enable a second six-month extension of certain project deadlines under the CFF to December 31, 2021.

The decision to extend the CFF in-service deadline by an additional six months was based on information provided by the IESO and local distribution companies (LDCs) which forecasted that a remaining significant number of CFF projects were at risk of not meeting the in-service deadline of June 30, 2021. Completing these projects would contribute towards the CFF 8.7 terawatt-hours (TWh) electricity-savings target. The IESO estimates that there would be additional administrative and participant incentive costs to enabling these at-risk projects to complete as the new in-service deadline would extend one year beyond the original deadline.

The IESO will work with LDCs to implement this extension for participating customers, including taking steps to reinstate contracts that may have lapsed, in order to fully implement the extension as intended.

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. Launched on January 1, 2021, the 2021–2024 CDM Framework is continuing to provide energy-efficiency opportunities to Ontario businesses of all sizes, as well as income-eligible customers and on-reserve First Nations communities and customers. A formal mid-term review in 2022 will provide an opportunity to review programs, targets, and budgets of the CDM Framework in light of updated electricity system and customer needs.