Regulatory Reliability Oversight

Regulatory Accountability

The IESO is a not-for-profit corporate entity established in the Electricity Act, 1998, which is under the jurisdiction of the Ontario Minister of Energy. Its fees and licences to operate are set by the Ontario Energy Board. In fulfilling its role as the province’s reliability coordinator, the IESO must comply with, oversee and enforce reliability standards and processes that are set by several regulatory bodies within and outside of Ontario.

Regulatory Reliability Oversight

In Ontario, the IESO is responsible for complying with, overseeing and enforcing mandatory reliability requirements for planning and operating the integrated bulk electric system. The requirements are established by several recognized authorities:

Canada’s National Energy Board (NEB) regulates the importing of electricity and the construction and operation of international and designated inter-provincial electricity lines. The IESO holds two permits with the NEB:

Emergency Energy Export Permit EPE-421 authorizes the IESO to export emergency firm power and energy, and interruptible energy, at points on the international boundary between Ontario and the USA.
Unscheduled Circulating Power and Energy EPE-22 authorizes the IESO to transfer unscheduled circulating power and energy for simultaneous return to Canada over any international power line

The North American Electric Reliability Corporation (NERC) sets standards to ensure the reliability and security of the integrated bulk power system.
The Northeast Power Coordinating Council (NPCC), a delegation of NERC, is responsible for promoting and enhancing the reliability of the interconnected bulk power system in Northeastern North America.

The Reliability Standards Framework outlines the mandatory and enforceable reliability standards used to ensure the integrity of the interconnected North American bulk electric system.

The IESO’s Reliability Compliance Program is used to monitor, assess and enforce compliance with NERC and NPCC standards and criteria in Ontario. It also provides for emergency preparedness and power restoration activities for Ontario's integrated grid.

The IESO's Market Assessment and Compliance Division (MACD) monitors the operation of Ontario's electricity market and promotes compliance with the Ontario market rules and North American reliability standards. It operates as a distinct entity in that it has the authority to subject the IESO to compliance measures.