The capacity was secured through a competitive auction in October 2025 and will be deployed during the 2026 summer peak season. Historically, Toronto Hydro has procured between 4 and 8 MW annually. The latest auction nearly doubles that typical range and expands the program’s footprint from two transformer stations to six: Finch, Leslie, Manby, Horner, Strachan, and Dufferin.
The LDR program is designed to address localized capacity constraints within Toronto’s distribution system. Rather than immediately upgrading substations or expanding feeder lines, the utility works with commercial, industrial, and institutional customers to temporarily reduce electricity consumption or deploy on-site energy resources during critical peak periods.
The 12 MW secured represents flexible load that can be dispatched at specific points on the grid when demand spikes. According to Toronto Hydro, the capacity is roughly equivalent to shifting the load of 25 large commercial buildings or two major factories — without constructing new infrastructure.
This approach reflects a broader utility strategy of using non-wires alternatives to manage short- to medium-term constraints while pacing long-term capital investments. Toronto Hydro executed more than $600 million in distribution system capital investments in 2025, but the expansion of demand response suggests that infrastructure reinforcement alone is not sufficient to address localized summer peaks.
From 2026 to 2029, Toronto Hydro aims to procure up to 30 MW of local capacity across the six targeted stations, signaling that peak management will remain a structural component of system planning.
“Our customers are at the heart of this success,” said Jana Mosley, President & CEO of Toronto Hydro. “By joining forces, we're ensuring that Torontonians continue to benefit from a flexible, resilient distribution grid during peak demand.”
For participating customers, the program provides compensation in exchange for temporary load reductions during critical peak events. For the utility, it introduces a controllable resource that can defer or optimize infrastructure upgrades.
As urban electrification accelerates and summer peak demand intensifies, flexible local capacity is increasingly being treated as part of the grid itself — not simply as voluntary conservation.
