April 3, 2020
Given the impacts of COVID-19, the Independent Electricity System Operator is deferring the Capacity Auction that had been planned for June.
We are seeing noticeable declines in the demand for electricity and deferring the auction will give us time to update our planning forecasts in light of the COVID-19 impacts and better determine the capacity needs for 2021. Our intent at this time is to hold the auction in the fourth quarter of 2020.
We are also suspending work on further efforts to evolve the capacity auction and will reassess the value that these previously planned auction enhancements would bring to Ontario ratepayers and power system reliability later this year. We had expected to execute a second auction in March of 2021 for the one-year commitment period starting May 2022. We will continue to update stakeholders as results from the planning updates become available.
We are aware and appreciative of the significant efforts that stakeholders have made in advancing the capacity auction initiative. But we also recognize that our stakeholders are being challenged to effectively participate both in the upcoming auction and in our engagement activities preparing for the planned 2021 auction given their needed focus on COVID-19. Stakeholder input continues to inform our decisions and future capacity auction efforts will be guided by both the value they can bring to our sector and the ability of stakeholders to effectively contribute.
We appreciate your support and we will continue to work together to support all Ontarians during this challenging and unprecedented time.
President and Chief Executive Officer, IESO