I am a Local Distribution Company

microFIT for Local Distribution Companies 101 Guide

An Introduction to microFIT Contracts

Local Distribution Companies (LDC) conduct an important role in the microFIT Program.

The LDC then measures the amount of electricity injected into the grid by a microFIT Facility using a generation meter owned and operated by the LDC.

LDCs also make Generation Payments to Suppliers in accordance with the microFIT Contracts between the Independent Electricity System Operator (IESO) and the Suppliers. As a result, LDCs must open Generator Accounts for customers with a microFIT Facility, and use the readings from the generation meter to calculate the Supplier's Generation Payments.

Beacon

Beacon is an online tool, administered by the IESO, that enables LDCs to manage their active microFIT Contracts online. LDC users are able to view and manage all of the active microFIT Contracts and assigned tasks associated with the LDC. LDCs should regularly monitor the status of microFIT Contracts by visiting Beacon. This includes responding to review tasks and acknowledgement tasks from the IESO related to amendments and assignments.

LDCs must notify the IESO immediately of any changes to Beacon access that are required as a result of staffing or any other changes at the company or organization. Examples include staff who no longer require access to Beacon due to a change in roles, staff on a leave of absence, and staff who have left the organization. LDCs can send Beacon access requests to the microFIT team.

microFIT Contract Assignments

To transfer a microFIT Contract to a new person or entity, the current Supplier (Assignor) must assign the Contract to the prospective Supplier (Assignee) via the IESO’s online Contract management tool, Beacon.

LDC Role in microFIT Contract Assignments

Because the LDC maintains the physical connection to properties with microFIT Facilities and is also responsible for settling the Generator Account for these Facilities, LDCs have an important role to play when the Contract for a microFIT Facility is assigned. This includes:

Directing LDC customers to the IESO microFIT webpage and appropriate resources: 

The IESO encourages LDCs to communicate the following microFIT webpages and resources to the relevant parities when made aware of a real estate transaction involving a property with a microFIT Facility:

  • microFIT Support Line: 1-833-413-6348 (MFIT)
  • microFIT.Contract@ieso.ca
  • Assignors – Assignor’s Guide to Contract Assignment, Managing Your Contract Webpage
  • Assignees – Assignee’s Guide to Contract Assignment, Purchasing a Property with a Solar Facility 

Processing Contract Assignments: As part of the microFIT Contract Assignment process, the LDC will:

  • Establish a Generator Account in the Assignee’s name and provide the Assignee with the Generator Account Number associated with the new Generator Account;
  • Provide confirmation of the Assignee’s Generator Account details to the IESO via Beacon;
  • Cease to be a party to a Connection Agreement with the previous microFIT Supplier, and become a party to the Agreement with the new Supplier, and
  • Acknowledge the completion of microFIT Contract Assignments via the acknowledgement task communicated through Beacon.

Continuing to make Generation Payments pending notification of a successful Assignment:

The sale of a property with a microFIT Facility does not mean that the microFIT Contract and, with it, the Generation Payments will automatically be assigned. Therefore, LDCs should continue to make Generation Payments as per the payment provisions in the microFIT Contract and Retail Settlement Code until they receive notice from the IESO via Beacon that the microFIT Contract has been assigned.

LDC Role in Connection Agreements

The termination of a Connection Agreement automatically results in the termination of the microFIT Contract. If a Connection Agreement is terminated by the LDC or the Supplier, the LDC should notify the IESO with the date the Connection Agreement was terminated.

LDC Role in microFIT Contract Terminations

There are three scenarios where a microFIT Contract may be terminated before the end of the term:

  1. where a Supplier opens and completes a request to voluntarily terminate the microFIT Contract via Beacon;
  2. due to  breach of the Contract by the Supplier that is not cured within the prescribed remediation period resulting in the termination of the Contract by the IESO; or
  3. automatically when the Connection Agreement between the Supplier and the LDC is terminated by the LDC or the Supplier.
    LDCs are notified via Beacon on or before the effective date of all microFIT Contract terminations. Once notified, LDCs are expected to update their settlement system and cease Generation Payments as of the effective date of the termination.
    To maintain Contract confidentiality, the IESO cannot disclose detailed reasons for the termination 

LDCs are notified via Beacon on or before the effective date of all microFIT Contract terminations. Once notified, LDCs are expected to update their settlement system and cease Generation Payments as of the effective date of the termination.

To maintain Contract confidentiality, the IESO cannot disclose detailed reasons for the termination to the LDC.