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Corporate IESO > Ministerial Directives > Discontinuation of the Conservation First Framework

Discontinuation of the Conservation First Framework

March 21, 2019

On the recommendation of the undersigned, the Lieutenant Governor of Ontario, by and with the advice and concurrence of the Executive Council of Ontario, orders that:

WHEREAS the Minister of Energy, Northern Development and Mines (Minister) is committed to ensuring that Ontario has an affordable and reliable electricity system, while continuing to find efficiencies in the electricity sector; 

AND WHEREAS it is desirable that the Minister bring forward an initiative designed to refocus current conservation and demand management efforts on the most cost-effective programs and delivery models; 

AND WHEREAS the Minister may, with the approval of the Lieutenant Governor in Council, issue directives under subsections 25.32(5) and (11) of the Electricity Act, 1998 that require the Independent Electricity System Operator to undertake any initiative or activity that relates to measures related to the conservation of electricity or the management of electricity demand and may amend or revoke directions previously issued for that purpose; 

NOW THEREFORE the Directive attached hereto is approved. 

I, Greg Rickford, Minister of Energy, Northern Development and Mines hereby direct the Independent Electricity System Operator (IESO) pursuant to subsections 25.32(5) and (11) of the Electricity Act, 1998 (Act) in regard to two previously established electricity conservation and demand management (COM) procurement initiatives, the 2015-2020 Conservation First Framework (CFF) and the Industrial Accelerator Program (IAP), which were undertaken by the IESO in accordance with one or more directions previously issued, as follows: 

Background

Our government is committed to ensuring that Ontario has an affordable and reliable electricity system, while continuing to find efficiencies in the electricity sector.

To date, electricity COM programs in Ontario have resulted in significant electricity savings and given consumers choices on how to reduce their electricity costs. However, consumers now are much more aware of their conservation options and the range of affordable products, services and technology.

The IESO's recent system planning assessment, which includes ongoing benefits from energy efficiency, indicates that Ontario has sufficient options to satisfy electricity demand needs for the near term.

It is therefore appropriate to re-evaluate the current COM programs and to refocus efforts on the most cost-effective initiatives and discontinue programs and delivery models that are less effective in driving cost efficiencies and meeting system needs.

In addition to this Directive, I intend to issue a directive to the Ontario Energy Board (OEB) to provide the OEB with the authority to amend or remove licence conditions for local distribution companies (LDCs) that relate to COM. I also intend to issue a companion directive to the IESO directing it to offer a suite of centrally-delivered electricity COM Programs. 

Directive

Therefore, in accordance with the authority I have pursuant to subsections 25.35(5) and (11) of the Act, I hereby direct the IESO in respect of the CFF and IAP procurement initiatives, as follows: 

  1. To take all steps necessary to immediately discontinue the CFF;
  2. To take all steps necessary to immediately discontinue the IAP;
  3. To take all other steps which are necessary in order to facilitate the full and complete implementation of this Directive, as soon as is practicable;
  4. To use all commercially reasonable efforts to minimize costs associated with the CFF and IAP procurement initiatives, including costs associated with the immediate discontinuance of such procurement initiatives;
  5. To complete by September 30, 2019, an achievable potential study for electricity efficiency in Ontario, to inform electricity efficiency planning and programs. The achievable potential study should, as far as is appropriate and reasonable having regard to the respective characteristics of the electricity and natural gas sectors, be coordinated with the natural gas efficiency achievable potential study referred to in the directive to the Ontario Energy Board dated March 26, 2014; and
  6. To report quarterly to the Ministry on all costs and activities related to the discontinuance of the CFF and IAP procurement initiatives. 

Consequential Amendments

  1. The direction entitled "2015-2020 Conservation First Framework" that was issued to the Ontario Power Authority on March 31, 2014 is hereby revoked.
  2. The direction entitled "Industrial Accelerator Program" that was issued to the Ontario Power Authority on July 25, 2014 is hereby revoked.
  3. The direction entitled "Amending March 31, 2014 Direction Regarding 2015-2020 Conservation First Framework" that was issued to the Ontario Power Authority on October 23, 2014 is hereby revoked.
  4. Section 2 and the corresponding paragraphs under the Background heading of the direction entitled "Upgrades to Existing Renewable Projects, Conservation First Framework and Support Programs" that was issued to the IESO on June 10, 2016 is hereby revoked.
  5. Sections 3, 4 and the corresponding paragraphs under the Background heading of the direction entitled "Non-Utility Generators (NUGs) under Contract with the Ontario Electricity Financial Corporation (OEFC), Feed-in Tariff (FIT) Procurements, 2015-2020 Conservation First Framework, and Delivery of Programs under the Conservation First Framework and the Industrial Accelerator Program" that was issued to the IESO on December 16, 2016 are hereby revoked. 
  6. The direction entitled "2015-2020 Conservation First Framework and Partnering with Green Ontario Fund; Delivery of Conservation and Demand Management Programs Targeted to the Low-Income Customer Segment" that was issued to the IESO on August 4, 2017 is hereby revoked.
  7. Section 1 and the corresponding paragraphs under the Background heading of the direction entitled "Amendments to Ministerial Directions Arising from the Long-Term Energy Plan 2017" that was issued to the IESO on October 26, 2017 is hereby revoked.
  8. The direction entitled "Reallocation of Targets from the Industrial Accelerator Program to the 2015-2020 Conservation First Framework and Delivery of Programs Targeted to On-Reserve First Nations Communities" that was issued to the IESO on February 8, 2018 is hereby revoked.  

General

For greater clarity, all other terms of any previous direction or directive remain in full force and effect.

This Directive takes effect on the date it is issued.