On November 27, the IESO announced that it would be cancelling plans to run a capacity auction during the month of December. The IESO’s announcement followed a decision by the Ontario Energy Board. Instead, the IESO held another demand response auction on December 4.
As explained by the IESO, “The OEB’s decision grants a stay that was requested by the Association of Major Power Consumers of Ontario (AMPCO) regarding market rule amendments the IESO made to enable the first capacity auction. AMPCO has also asked the OEB to review and issue an order revoking the IESO’s market rule amendments, referring them back to the IESO for further consideration. AMPCO’s concerns relate to energy payments that can be received by generators but not demand response providers. The stay suspends the operation of the IESO’s market rule changes pending the outcome of the OEB’s review.”
The IESO noted that it “remains committed to increasing competition in the electricity markets to provide new opportunities for market participants and drive down costs for consumers. The IESO is also continuing its stakeholder engagement to inform the scope of an independent study to assess whether there is a net benefit to Ontario electricity ratepayers if DR resources are compensated with energy payments.”