Market Renewal Program Implications to Electricity Supply Contracts
The IESO is committed to working with electricity supply contract counterparties that are market participants to understand contract implications and address any changes throughout the design of the Market Renewal Program (MRP).
This web page will be updated on a regular basis to include information about group meetings and webinars that will be taking place. In addition, this webpage will include past presentation materials, webinar recordings, feedback and responses, as well as any other non-confidential information that may be relevant to all contract counterparties or broader stakeholders.
The IESO continues to encourage contract counterparties to ask questions related to their contract by emailing Contract Management.
| Term Sheets | Webinars | Feedback and Responses |
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July 2024: September 2024: September 2024: July 2024: |
November 2023: April 2019: |
February 2024: October 2023: February 2020: |
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June 2024: February 2024: September 2019: |
March 2024: August 2021: |
February 2020: |
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September 2024: |
December 2023: |
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September 2024: |
February 2023: |
April 2024: |
Approach to Address the Impacts of the Market Renewal Program (MRP) on Electricity Supply Contracts Settled by Local Distribution Companies (LDCs)
This update is for IESO-contracted suppliers (the “Suppliers”) for generation facilities connected to the distribution system and for which payments are administered by Local Distribution Companies (the "LDC-Settled Contracts").
These contracts include most FIT and HCI contracts, as well as certain HESOP, LRP and RESOP contracts where the Suppliers are not Market Participants. These LDC-Settled Contracts contain references to the Hourly Ontario Electricity Price (“HOEP”), which upon the implementation of the MRP, planned for May 1, 2025, will no longer be available.
Since the definition of HOEP under the LDC-Settled Contracts provides for replacement pricing, the IESO intends to implement a replacement price to account for HOEP being eliminated as further described below.
The Retail Settlement Code (“RSC”), as issued and maintained by the Ontario Energy Board (“OEB”), determines the price(s) used by LDCs in the settlement of connected retail customers, including generators. In April 2024, the OEB issued a letter outlining the anticipated amendments to the RSC, including the replacement price for HOEP, that will be required when the IESO’s Market Rule amendments related to the MRP take effect. Specifically, the OEB has identified that HOEP will need to be changed to a new uniform price (the “Retail Settlement Code Price”) which is expected to be the sum of the day-ahead market Ontario Zonal Price and the Load Forecast Deviation Adjustment. The letter can be found on the OEB’s website at the link below:
The IESO intends to maintain alignment with the price that is prescribed for LDCs by adopting the Retail Settlement Code Price as the replacement price for HOEP in LDC-Settled Contracts.
No amendments to the LDC-Settled Contracts will therefore be required. Once the updates to the RSC have been finalized by the OEB, the IESO will provide notices to the Suppliers that hold LDC-Settled Contracts that confirms the replacement price to HOEP that will take effect after the implementation of the IESO’s MRP.
microFIT contracts are not affected and will not receive a notice.
Please contact mr.contractmanagement@ieso.ca if you have any questions.