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Change to Price Basis for Prudential Support Calculation for Distributors

January 14, 2021

Distributor Market Participants should be aware that a new price basis has been calculated to determine their prudential support obligations.

The IESO performed a review of the price basis to reflect the Ontario Government decision to remove certain renewable generation contract costs from the pool of costs paid by ratepayers and found that the prices for distributors required updating. The updated price basis for metered market participants that are distributors is $101/MWh. The price basis for other metered market participants remain unchanged at 126.37/MWh.  

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 at least 15 percent, the price basis used by the IESO is modified.

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