Change to price basis for prudential support calculation
November 26, 2020
The IESO’s annual review of the price basis used to determine market participants’ prudential support obligations has found that the prices for distributors require updating. The price basis for other metered market participants remain unchanged. The updated price basis are as follows:
- $126/MWh for metered market participants that are distributors
- $126.37/MWh for other types of metered market participants
For prudential calculation purposes, the IESO is required to determine a market participant's prudential support obligation using prices published in the Ontario Energy Board's electricity price forecast. If these prices have increased or decreased by 15 per cent or more year-over-year, the price basis used by the IESO is modified.
Tools are available through the IESO Portal to track exposure, review posted collateral, and propose adjustments to prudential support. More information on these tools can be found through Appendix B of the Guide to Prudentials at the IESO.