Toronto: In an effort to improve the structure and operation of Ontario’s wholesale electricity market, the Independent Electicity System Operator has launched a new single purpose initiative: the Electricity Market Forum. The IESO says it wants to “address the future role and development path for the IESO-administered markets.”
The Forum will focus on preferred arrangements for:
• achieving efficient real-time operation of Ontario’s future power system;
• encouraging and facilitating competitive market-based responses and options for meeting overall system needs; rather than on industry institutional structures.
It will not be an advocacy group for any particular industry sector.
The primary product of the Forum will be a comprehensive report that will contain findings and recommendations for Ontario’s electricity sector and will form a basis for further action and discussion among policy makers, regulators and industry participants. George Vegh of McCarthy Tetrault will serve as Chair.
A draft statement of objectives was circulated amongst IESO stakeholders in March. It identified the following proposed goals:
• Develop an understanding of the principal issues being encountered or anticipated in the operation of and participation in the IESO-administered market.
• Identify and assess the practicality of market changes aimed at improving the ability of the market to efficiently deliver reliable and sustainable electricity, promote transparency, meet customer requirements, align contract and market incentives, and support the operability of the electricity system.
• Develop an actionable set of recommendations to implement market improvements. These would include sequencing, timelines, enablers and barriers – developed to sufficient detail to support implementation within the time horizons.
• Address the respective roles of the market, contracts, and regulation.
• Describe the anticipated outcomes and their benefits for the province, and identify the actions needed to overcome barriers to achieving those benefits.
The Forum will be roughly modeled after Ontario’s Electricity Conservation and Supply Task Force (January 2004) and the Smart Grid Forum (February 2009.) That is, the Forum will represent industry leaders presented with a variety of information and arriving largely to a consensus view. The Forum will consist of two inter-related committees:
• The Market Development Committee (which will consider alternatives for the evolution of Ontario’s electricity market and develop preferred arrangements for: achieving efficient real-time operation of Ontario’s future power system; encouraging and facilitating competitive market-based responses and options for meeting overall system need) and
• The Executive Steering Committee.
The Forum is expected to meet over the period to September/October, 2011 and will produce a final report that will be made public prior to year-end, 2011.