On June 10, 2016, the Minister of Energy directed (the
"Directive") the Independent Electricity
System Operator (the "IESO") to expand
the scope of the second phase of the Large Renewable Procurement
("LRP II"), previously announced on
April 5, 2016 and discussed
The Directive instructs the IESO to increase procurement targets
for LRP II, introduce new programs under the Conservation First
Framework, and reallocate unused funding towards the IESO's
Recognizing the increasing contribution of renewables to
Ontario's electricity supply mix, the Directive raises the
previously set procurement target for LRP II from 930 MW to 980 MW
of renewable electricity. The Directive also requires the IESO,
through its current consultation process, to explore opportunities
for procuring additional generation through technical upgrades and
optimizing existing renewable generating assets.
Conservation First Framework
In respect of the Conservation First Framework, the Directive
calls for the development of two new Conservation and Demand
Management ("CDM") programs, namely (i)
a province-wide pay-for-performance program for consumers with
multiple locations across several distribution territories and (ii)
a province-wide "whole home" CDM pilot program for
The IESO will work with distributors to develop and implement
these programs by late 2016. Any reductions achieved through these
programs in electricity consumption will count toward CDM targets
and requirements for local distribution companies. The IESO is also
required, where appropriate, to deliver the programs in
coordination with natural gas distributors.
Funding for Support Programs
Finally, the Direction permits the IESO to reallocate $4 million
in unspent Support Program funds from 2015 towards the
2016 budget, increasing the total budget to $14 million.
*This article was written with assistance from Meredith McCann, a summer student at Aird & Berlis LLP.
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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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