The Ontario Independent Electricity System Operator (IESO) began
a stakeholder initiative in November 2009 to establish
guidelines to integrate renewable generators into the IESO dispatch
regime. As we reported last year, the IESO issued its final
renewable energy integration "Design Principles" in
March 9, 2011 and followed this with proposed amendments
to the IESO market rules, designated under MR-00381 (Market Rule
Amendments). The proposals were designed to, among other things,
impose reporting and monitoring requirements on variable generators
(i.e., wind and solar generators that have an installed capacity or
five megawatts or greater or that are directly connected to the
IESO-controlled grid) and make variable generators that are market
participants become dispatchable on an economic basis by the IESO.
As expected, these Market Rule Amendments were approved by the
IESO's board of directors on November 29, 2012 and
were published January 3, 2013, thus causing them to come
into effect on January 3, 2013.
One consequence of the publication of these amendments is that
certain holders of feed-in tariff contracts (FIT Contracts) or
renewable energy supply contracts with the Ontario Power Authority
(OPA) are at risk of economic curtailment and, therefore, an
adverse effect on their respective economics under these contracts.
There may be other adverse effects caused by these amendments
relating to reporting and monitoring requirements.
The holders of FIT Contracts and renewable energy supply III
contracts (RES III Contracts) are entitled to provide notice to the
OPA under section 1.7 of the FIT Contract or section 1.6 of the RES
III Contract and to seek compensatory changes to such contracts.
FIT Contract holders have 15 days to provide such notice
(January 18, 2013) while RES III Contract holders must
give such notice "promptly."
The second consequence of the publication of these
amendments is that the timeline for a potential appeal to the
Ontario Energy Board (OEB) starts to run. Specifically, the OEB may
overturn the market rule if it determines that the rule unjustly
discriminates in favour or against a market participant or is
otherwise inconsistent with the purposes of the Electricity
Act, 1998. The deadline for filing an appeal to the OEB is
January 24, 2013.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).