Transmission Rights Market Review

Intertie trading provides the IESO with operational and planning flexibility in its day-to-day operations, and significantly enhances the reliability and cost-effectiveness of Ontario’s electricity system. Transmission Rights (TRs) were introduced as a risk management tool to enable traders to hedge the financial risks associated with uncertain congestion at the interties. These financial instruments were expected to contribute to the efficient and reliable operation of Ontario’s electricity system, by facilitating efficient electricity trade and integration with neighbouring markets. It is important to understand how TRs promote efficient intertie trading in today’s market.

The Ontario TR market was established at market opening in 2002 and has since been operating largely based on the original design. Over the years, the IESO has received recommendations and feedback regarding potential inefficiencies of the TR market observed by the Ontario Energy Board’s Market Surveillance Panel (MSP), IESO internal business units and external market participants. In response, the IESO has made changes to the TR market to address issues and also committed to conduct a more fulsome review of the market to determine whether it is achieving its intended purpose. 

More recently the Market Renewal Program (MRP) has proposed changes to the energy market which will have a significant impact on TRs. These changes include replacing the uniform Market Clearing Price (MCP) with Locational Marginal Pricing (LMP), shifting TR market settlements from real-time to day-ahead, and changes to the calculation of congestion pricing. It is important that the TR market effectively integrates these changes into its design to ensure alignment and compatibility with the future renewed market.

As part of the TR Market Review stakeholder engagement, the IESO will work with stakeholders to determine what changes may be required to maximize the efficiency of the TR market and to ensure that the TR market is aligned and compatible with the renewed energy market in the future.

Additional details on the IESO’s plans to engage stakeholders throughout the process can be found in the engagement plan. All comments and enquiries on this engagement can be directed to

Related Information

Scope of Work – Updated May 29, 2020



Schedule of Activities




Q1 2021

Publish final report summarizing Transmission Rights Market Review findings


Q1 2021

Engagement meeting/webinar

Review stakeholder feedback on draft report


Q4 2020    

Publish draft report summarizing findings and next steps for stakeholder comment


Q4 2020

Engagement meeting/webinar

Review feedback on Stage 2 presentation and begin Stage 3 of the Review focussed on potential longer term improvements that could be implemented


July 22, 2020


Engagement webinar

Review feedback on Stage 1 presentation and begin Stage 2 of the Review focussed on potential near term improvements that could be implemented

Webinar Registration

This webinar is being presented during the IESO's July stakeholder engagement meetings. See agenda for more information.

June 11, 2020

Stakeholder feedback on materials presented at May 21st webinar.


May 21, 2020


Engagement webinar

Review feedback following April 2 MDAG webinar presentation and begin discussions about Stage 1 of the  focussing on the value assessment

Recorded Presentation

This webinar is being presented during the IESO's May stakeholder engagement meetings. See agenda for more information.


May 2020              

Transmission Rights Market Review initiative re-launched as separate stakeholder engagement