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Price Bias Adjustment Factor

There are many causes to intertie transaction failures, some within the control of market participants and some outside of their control. An intertie transaction failure charge occurs when an interjurisdictional energy transaction has been accepted in the pre‐dispatch schedule, but fails to flow in real‐time for reasons not considered 'bona fide and legitimate'. In these cases, a formula‐based financial penalty for the market participant may be applied. Intertie failures increase stress on IESO-controlled grid operations and adversely affect reliability.


The intertie failure charge calculation includes the difference between the pre-dispatch and real-time Ontario price during the hour of the failure. This difference is adjusted by a price bias adjustment factor, which compensates for the different methods used to calculate the pre-dispatch and real-time Ontario prices. These price bias adjustment factors are to be used in the settlement charge calculation for the real-time import and export failure charge as well as the day-ahead linked wheel failure charge.

Adjustment Factor

The price bias adjustment factors that form part of the charge calculation will be provided in advance of the effective trade date. There are 24 hourly factors that will apply for a three-month period to both the import and export failure charge. These three-month periods are aligned with the seasons of the year. The effective period of the factors are in three-month blocks and are defined in the table below.

The effective start time is the first hour of the first day of the block and ends the 24th hour of the last day of the block.

The factors will be updated at least one month before their effective trade date. The effective period of the factors appears at the top of each column below.

Market participants will be notified when the factors are updated. Old factors are overwritten with each update. Here is a table of current adjustment factors:

Date Posted​​April 21, 2016​April 21, 2016​October 24, 2016
​October 24, 2016​
Hour ​Jun 2016 - Aug 2016Sep 2016 - Nov 2016​Dec 2016 - Feb 2017
​Mar 2017 - May 2017
1​0.04
​0.04​0.21
​0.02
2​0.02​0.03​0.17
​0.00
3​​0.00​0.01​0.09
​​0.00
4​0.01​0.03​0.52
​0.00
5​0.00​0.05​0.46
​0.00
6​2.12​2.54​7.48
​5.17
7​2.84​0.44
​7.82
​2.34
8​4.63​0.79​3.15
​1.66
9​2.79​1.16​3.37
​2.55
10​0.61​0.32​0.84
​0.88
11​0.25​0.47​1.15
​​0.55
12​0.47​0.41​1.56
​0.99
13​0.34​0.18​1.41
​0.38
14​1.06​0.10​2.02
​0.86
15​0.57​0.06​1.35
​0.57
16​0.68​0.01​1.11​
​0.88
17​0.25​0.78​4.38
​0.03
18​0.08​0.55​2.58
​0.04
19​0.00​0.38​2.25
​-0.04
20​-0.18​0.18​1.30
​0.50​
21​0.01​0.03​0.83
​1.09
22​0.03​0.00​0.28
​0.40
23​0.02​0.00​0.32
​0.31
24​0.030.06​​0.23
​0.19

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