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​For more information on this stakeholder initiative, email Stakeholder Engagement.


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Prudential Review 2010 (SE-88)

Prudential Review (SE-107)

​The IESO is conducting a stakeholder engagement initiative to support a review of the current real-time market prudential framework ("Prudential Review"). The Prudential Review directly affects all market participants who pay the costs of prudential support and also those who are subject to a default levy in the event of a payment default. The intent of this consultation process is to review the prudential framework, listen to any concerns from stakeholders, establish if there is any desire to make changes, and then propose appropriate recommendations to assess the potential need for change.

As a condition of purchasing energy in the real-time markets or conveying electricity through the IESO-controlled grid, a market participant must provide the IESO with prudential support to mitigate credit risk. Prudential support is vital to the market's integrity because electricity is consumed at the moment it is generated and is not stored for future use. Therefore, it is not possible to recover electricity if the IESO does not receive payment.

The goal of this Prudential Review is to determine if the current framework provides adequate and reasonable mechanisms to manage and deal with credit risk in the real-time electricity market.

Stakeholder Engagement Plan (Draft)
Stakeholder Engagement Plan (Final)


Schedule of Activities

Date

Activities

Expected Actions

​November 5, 2013

​Stakeholder Engagement closed.
This engagement involved a review of the IESO's prudential framework to determine if it provides adequate and reasonable mechanisms to manage and deal with credit risk in the real-time electricity market. The IESO has requested an amendment to the market rules to implement the results of the stakeholder engagement, which is to increase the allowable unsecured credit for market participants to use in satisfying their prudential support obligations with the IESO. If approved, the market rule changes are expected to come into effect in early 2014.

​November 1, 2013

Final Evaluation of Stakeholder Engagement Effectiveness

October 3, 2013

Final Report

August 8, 2013

Summary of Feedback and IESO Response

July 22, 2013

Stakeholder Feedback

Stakeholder to provide feedback on the results presentation

June 26, 2013

Stakeholder Meeting � Open Session

Draft research results to be posted to the SE-107 web page in advance of Session

April 17, 2013

IESO Response to Stakeholder Feedback

Summary of Initial Feedback

February 28, 2013
Agenda

Stakeholder Meeting � Open Session

Stakeholder Feedback

Materials to be provide in advance of Session, and posted to the SE-107 web page

February 7, 2013

Communicate launch of stakeholder engagement and publish stakeholder engagement plan

Stakeholders to provide written feedback