Home > Participate > Market Oversight > Enforcement Sanction Details

Enforcement Sanction Details

IESO | December 2014
Event 1: Errors in preparing for a planned transmission outage

The IESO self-reported that on March 26, 2012 they failed to account for all potential contingencies – or unplanned system events – involving power system elements in the Bruce area when they developed and implemented an operating plan. The error occurred as the IESO prepared for a planned transmission outage. As a result of this oversight, the IESO failed to recognize and prepare for a post- contingency system configuration that might have compromised reliability of the bulk power system, if the contingency had occurred. Although these breaches did not have an impact on reliability in real time, they exposed the power system to increased risk.


Event 2: Failing to maintain accurate computer models for analyzing and planning system operations

The IESO self-reported that on April 27, 2012, they failed to maintain accurate computer models utilized for analyzing and planning system operations. Specifically, a contingency that should have been modelled was not included in the IESO’s Security Analysis program as required by the standard. This omission resulted in the IESO not preparing for the generation loss associated with the most severe single contingency that could affect the system. This failure had no actual impact on reliability as contingency conditions did not materialize in real time.  MACD’s assessed sanction for these two events was reduced to a $16,000 penalty after consideration of all relevant penalty factors. The main mitigating factor was the IESO's proactive self-report in these matters. In addition, MACD considered the significant costs incurred by the IESO in respect of the voluntary implementation of mitigation plans and other additional compliance measures following these events. Spending on these measures totalled more than $800,000. The measures are intended to reduce the likelihood of similar events and strengthen the controls used by the IESO to manage Bruce-area outages. In keeping with MACD’s primary objective of fostering reliability via compliance with the market rules, these investments serve as the most effective vehicle.


​Ontario Power Generation Inc. (OPG) | August 2014
Failing to comply with dispatch instructions for operating reserve activations on 5 occasions

Ontario Power Generation was sanctioned $21,500 for failing to comply with dispatch instructions for operating reserve activations on 5 occasions over the period July 2010 to December 2010. The breaches were in relation to generation facilities at Beck 2 PGS, Holden GS, Lennox GS and Madawaska River Aggregate. Final breach determinations were established by and sanctions were agreed to pursuant to settlement discussions, subsequent initiation of a dispute by OPG.


​Ontario Power Generation Inc. (OPG) | March 2014
Failing to remove its offers for Lambton G4 in HE 19  

Ontario Power Generation Inc. (OPG) paid the sum of $550,000 to the IESO for its failure, on a timely basis, to remove its offers for Lambton G4 in HE19 on October 15, 2010 as required by Chapter 7, Section 3.3.8 of the Market Rules. The payment addresses financial benefit inadvertently received by OPG, impact to the market and other factors. Along with a lack of intent to breach the rule, MACD notes in particular the timely self-report and other cooperation by OPG regarding the matter.


Brookfield Energy Marketing LP | March 2014
Failing to comply with dispatch instructions for operating reserve activations on 14 occasions

Brookfield Energy Marketing LP was sanctioned $47,500 for failing to comply with dispatch instructions for operating reserve activations on 14 occasions over the period July 2010 to June 2011. The breaches were in relation to generation facilities at Red Rock GS and Aubrey GS, and at generation facilities associated with the Mississagi River and the Montreal River. In levying the sanction amount, MACD took into account the fact that Brookfield Energy Marketing LP's failures were not deliberate, Brookfield Energy Marketing LP cooperated in MACD's investigation and Brookfield Energy Marketing LP has put remedial measures in place to improve its compliance with dispatch instructions for operating reserve activations.