Price Bias Adjustment Factor
There are many causes for intertie transaction failures; some within the control of market participants and some outside of their control. Intertie failures increase stress on IESO-controlled grid operations and adversely affect reliability. An intertie transaction failure charge occurs when an interjurisdictional energy transaction has been accepted in the pre‐dispatch schedule, but fails to flow in real‐time for reasons not considered 'bona fide and legitimate'. In these cases, a formula‐based financial penalty for the market participant may be applied.
The intertie failure charge calculation includes the difference between the pre-dispatch and real-time Ontario price during the hour of the failure. This difference is adjusted by a price bias adjustment factor, which compensates for the different methods used to calculate the pre-dispatch and real-time Ontario prices. These price bias adjustment factors are to be used in the settlement charge calculation for the real-time import and export failure charge, as well as the day-ahead linked wheel failure charge.
The price bias adjustment factors that form part of the charge calculation will be provided in advance of the effective trade date. There are 24 hourly factors that will apply to both the import and export failure charge for a three-month period. These three-month periods are aligned with the seasons of the year. The effective period of the factors are defined in the table below.
The effective start time is the first hour of the first day of the three-month block and ends the 24th hour of the last day of the block. The factors will be updated at least one month before their effective trade date. The effective period of the factors appears at the top of each column below. Market participants will be notified through the IESO Bulletin when the factors are updated.