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Interruptible Rate Pilot

Sector Evolution

In November 2021, the Ministry of Energy (ENERGY) posted a proposal on Ontario’s Regulatory Registry entitled Interruptible Rate Pilot and Administrative Review of Ontario Regulation 429/04. In August 2022, ENERGY issued a letter asking the Independent Electricity System Operator (IESO) to work with ENERGY towards designing a three-year interruptible rate pilot. The IESO reported back to ENERGY on a detailed pilot design proposal by December 9, 2022. In February 2023, the Minister sent a letter to the IESO expressing support for sharing with stakeholders the draft pilot rules and contract based on the detailed pilot design proposal.

The pilot is expected to help provide large electricity load customers with an interruptible rate for Global Adjustment charges during the pilot term in exchange for agreeing to interrupt demand during interruption events as identified by the IESO. The pilot aims to provide a system benefit in the form of peak demand reduction, which may contribute toward grid efficiency, and a reduction in consumer costs and greenhouse gas emissions. In addition, it is anticipated that participants in the pilot may benefit from greater cost and planning certainty, particularly for loads that experience challenges in identifying and responding to top peak demand hours while participating in the Industrial Conservation Initiative (ICI) The pilot provides the IESO and participants with the opportunity to test new rate designs and open new policy options.

All potential pilot participants are encouraged to participate in this engagement. The IESO anticipates that this initiative will be of particular interest to market participants with load facilities. The Pilot is also being explored as an option to promote growth in the hydrogen sector. All comments and enquiries on this engagement can be directed to

Schedule of Activities

Anticipated timing for this engagement is presented below.


Engagement Activity

Expected Actions

June 30, 2023

Successful applicants

Pilot webpage

March 13, 2023 – March 31, 2023

Pilot Application Period is open. The Application End Time is 11:59:59 pm EPT on March 31, 2023. To submit an Application, please review the instructions in the Application Form and Pilot Rules.

March 13, 2023


Final Application Materials posted:

Final Pilot Rules and Pilot Contract posted:


Response to Feedback:


February 20, 2023

Following the February 7 engagement webinar, the IESO is seeking feedback from participants on how the design proposal has been captured and detailed in the draft Pilot documents.

Feedback Received:


February 7, 2023

Stakeholder webinar:

Recorded Presentation

December 9, 2022

Report back to ENERGY:

  • IESO to report back to ENERGY on a detailed pilot design proposal and proposed participant selection process.

November 28, 2022

Following the November 23rd engagement webinar, the IESO is seeking feedback from participants on the proposed rate design and criteria.

Feedback Received

February 6, 2023: IESO Response to Stakeholder Feedback


November 23, 2022

Engagement webinar

The IESO will report back to stakeholders on the feedback received through the October consultation sessions and summarize how it will inform the report back to the Ministry.

Recorded Presentation

This webinar was presented during the IESO's November stakeholder engagement sessions, see full agenda for more information.

November 1, 2022

Following the focused consultation sessions with potential pilot participants, the IESO is seeking feedback on a number of questions related to initial design elements of the Interruptible Rate Pilot.

Feedback Received

November 23, 2022: IESO Response to Stakeholder Feedback

October 2022

Focused consultation with potential pilot participants: