Toronto: As part of the initial consultations on modernization of the Ontario Energy Board, the agency spoke with APPrO President Dave Butters. APPrO summarized key points in a submission on May 7.
The APPrO submission reiterated the high degree of importance market participants place on improved governance as a primary condition for Market Renewal. It noted that, “moving away from the current Ontario design to a form of US Standard Market Design (SMD) will not be successful if it does not address and resolve market participant concerns about governance and decision-making processes. Stakeholders have made the point that the accountability model for the IESO should follow the pattern of other ISOs and RTOs in North America: i.e., that the terms and conditions of services be reviewed on the basis of a just and reasonable standard by an independent regulator.”
Citing the approach being implemented in Alberta, APPrO said, “The new ISO Rule Approval Process directs that:
• The AUC would be required to review and approve all new or modified ISO rules;
• The AUC would also have the discretion to determine the level of rigor of the review and approval process that needs to apply to any given rule; and
• Existing rules would be grandfathered into the new approval system.
Ontario should consider this approach.”
APPrO also noted that, “OEB oversight is largely restricted to operating and capital costs, but has gotten into other areas on an ad hoc basis, through conditions of orders, such as stakeholdering, CMSC, and day ahead market. Review of operating and capital costs is largely meaningless given that Minister has prior approval/review of the business plan from which they flow. Pursuit of other areas can be unpredictable and unsystematic.”
APPrO has proposed an accountability model for the IESO that “follows the pattern of every other ISO and RTO in North America: that the terms and conditions of services be reviewed on the basis of a just and reasonable standard by an independent regulator.”