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New Engagement-Cost Recovery for Integrating System Changes

June 30, 2021

A new engagement will seek input from stakeholders on changes that will allocate certain costs associated with connecting a new facility, or modifying an existing facility, to the proponent seeking the change. This includes the costs associated with assessments and system updates that are required to ensure facilities are integrated into the reliable operation of Ontario’s electricity system.

Proponents are currently not responsible for costs associated with ensuring facilities meet prescribed requirements, and subsequently updating the IESO’s systems, processes and procedures to reliably integrate those new or modified facilities when they come into service. These costs are currently recovered from all loads in the province on a volumetric basis through the IESO’s usage fees. 

The IESO intends to begin charging these costs to the proponent initiating the change and is seeking stakeholder input on the method to be used to apply these charges for various types of activities, invoicing timing, the phase-in strategy, and to obtain feedback on whether any special considerations exist. Since this initiative will result in a change to an IESO administered fee, OEB approval will be required prior to implementation.

The first session for this engagement will take place on July 22 as part of this month’s stakeholder engagement meetings.  The amendment proposal is posted on the proposed market rule amendment web page. Please email to be added to the email list for communications related to this engagement.

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