Corporate Power Purchase Agreements (C-PPAs) for ICI Participants

Settlements

The IESO oversees and reconciles more than $23 billion in funds from the IESO-administered markets, related services, programs and electricity charges. The IESO places the highest importance on maintaining the reliability of its settlement systems and processes as well as ensuring the complete accuracy of these core functions.

Corporate Power Purchase Agreements (C-PPAs) for ICI Participants

Overview

In June 2025, Ontario Regulation 429/04 (the “Regulation”) was amended to create a new regulatory framework that enables large electricity consumers to access clean electricity through Corporate Power Purchase Agreements (C-PPAs). These changes take effect with the 2026–2027 base period.

The framework supports participants in the Industrial Conservation Initiative (ICI) program by allowing them to enter into C-PPAs with renewable generators located anywhere in Ontario. This initiative helps consumers manage electricity costs and meet clean energy goals, while providing new revenue opportunities for generators.

Eligibility and Participation Requirements

To participate, both the large electricity consumer and the generator must be market participants and meet the requirements set out in the Regulation.

Participants are required to submit prescribed forms and supporting documentation to confirm regulatory compliance. Submissions include, but are not limited to:

A signed Eligible Purchase Agreement
An attestation confirming that participants meet, and will continue to meet, the Regulation’s requirements throughout the base period

How C-PPAs Work

C-PPAs are typically structured like virtual power purchase agreements (VPPAs), where financial settlement is separate from the physical delivery of electricity. Under these agreements, the generator’s output can be used to offset the consumer’s demand during peak periods, which may help reduce Global Adjustment charges under the ICI program.

This structure offers participants a flexible tool to manage electricity costs and support clean energy goals, while providing new revenue opportunities for generators of renewable electricity.

The Independent Electricity System Operator (IESO) is responsible for administering both the ICI program and the C-PPA framework.

Key Dates

Submission Type	Deadline
Pre-base period submission window*	February 1st - March 30th of the applicable base period
Post-base period submissions	Within 15 days after the base period ends

*IESO strongly suggests submitting early in the submission window to allow sufficient time to remedy any issues ahead of the beginning of the base period

Resources

The IESO has published materials to help stakeholders understand the C-PPA framework and prepare for the 2026 submission window. These materials include:

C-PPA Program Guideline

C-PPA Program Guideline (January 14, 2026)

C-PPA Frequently Asked Questions (FAQs)

C-PPA FAQ (January 14, 2026)

C-PPA Prescribed Forms and Workbooks

Prescribed Form: Attestation for Eligible Purchase Agreement - Pre-base Period (January 14, 2026)
Eligible Purchase Customer Workbook (January 14, 2026)
Eligible Generator Workbook (January 14, 2026)
Prescribed Form: Attestation for Eligible Purchase Agreement - Post-base Period (January 14, 2026)

Stakeholder Engagement

To help stakeholders understand the C-PPA framework, the IESO hosted a stakeholder engagement session on November 4^th, 2025.

Learn more about the engagement plan, objectives, approach, timeline and considerations for engaging stakeholders.

Stay Informed

To receive updates on the C-PPA framework, subscribe to the C-PPA distribution list.

For inquiries, please contact: corporateppa@ieso.ca