On January 3, 2013, Ontario's Independent Electricity System Operator ("IESO") published amendments to the Market Rules that authorize the IESO to dispatch certain renewable generators in Ontario that are: (i) directly connected to the IESO-controlled grid; or (ii) embedded (i.e., not directly connected to the IESO-controlled grid) with an installed capacity of 5MW or greater that are registered IESO market participants (the "Renewable Integration Amendments"). For the first time, these amendments put these renewable generators at risk of economic curtailment effective September, 2013. To address this risk, the Ontario Power Authority ("OPA") is currently re-negotiating approximately 50 power purchase agreements with certain affected renewable generators. At present, the OPA's proposed compensation model is to compensate these renewable generators for any curtailment above specified contractual caps (e.g., hours per megawatt across contract life and hours per megawatt per year). Click here. While these contract negotiations continue with the OPA, a group of wind generators recently filed with the Ontario Energy Board an application seeking the review of the dispatch and floor price provisions of the Renewable Integration Amendments. The application and related materials are available here.

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