Yesterday, the Independent Electricity System Operator (IESO)
held an 'industry dialogue' meeting in Toronto, during
which it discussed the feedback and comments it received on the
draft contract and request for proposals (RFP) for the Large
Renewable Procurement I (LRP). The IESO shared some of the 'key
issues/common themes' that it received during the comment
period and also revealed that, due to the large number of comments
received and to administrative issues related to the recent
IESO/OPA merger (see our
prior post), the timeline for releasing the final documentation
for the LRP would be postponed for at least one month until
During the LRP comment period, we had shared our 'top
ten' issues with the draft documents (which can be found
here). Some of these were echoed by the industry and, along
with some other issues, were highlighted by the IESO at the
Connection Availability Information
– commenters requested more information regarding connection
availability in order to make informed project decisions. The IESO
commented that they are developing a process to convey such
information to applicants shortly.
Public Community Meetings –
commenters noted that requiring 2 meetings in each affected
community was too onerous; many suggested that only 1 community
meeting should be required.
Adjacent Landowner Agreements –
commenters noted that the 100% threshold was too onerous. While
there is no consensus on what threshold would be appropriate, the
IESO stated that they are considering different options. One of the
attendees of the meeting suggested that, instead of requiring
agreement from all landowners adjacent to the parcel of real
property on which the project is located, the requirement could be
revised to only require agreement from landowners whose property is
within a certain distance from the actual project structures (and
thereby focus the requirement on the most proximate neighboring
landowners). The IESO is taking the comment under advisement.
Permitted Purposes / Non-collusion
Requirements – commenters requested clarity regarding what
communications were prohibited. Further, commenters requested that
the restrictions accommodate partnerships between applicants and
joint community meetings. The IESO noted that the relevant
definitions would likely be evolving and that it was not their
intent to stifle community involvement.
Site Access Option Agreements –
commenters suggested that the required length of option agreements
to acquire necessary real estate could be shortened to 1-2 years
following submission of the application, rather than until
Termination for Convenience –
commenters objected to this and noted concerns as to whether equity
or debt financiers would accept such risks given the divergence
from previous OPA contracts, and recommending that any voluntary
termination right of the IESO be limited to the pre-construction
Permitted Site Amendments –
commenters raised concern over the sole and absolute discretion of
the IESO on these matters.
REA Appeals as Force Majeure –
commenters suggested that REA appeals should be considered force
Key Development Milestones –
commenters noted that financial close does not necessarily occur
prior to the commencement of construction and suggested that these
milestones be revised to reflect that possibility.
The IESO noted that its presented list was not a comprehensive
list of all comments that were received or that are being
considered, but only the 'high volume' comments that
multiple commenters made. They further clarified that the items
discussed were merely under consideration by the IESO, and that no
decision had yet been made as to whether such comments would be
accepted or whether any other accommodating changes would be
In respect of the timeline postponement, the IESO stated that
all relevant timelines would be adjusted as a result of the delay
in releasing the final LRP contract and RFP (including the proposal
submission deadline). The IESO intends to release interim updates
and/or FAQs prior to the release of the final LRP documents.
The full webinar can be viewed (after registration) here.
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.
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