2016 Prudential Review

As part of a regular review conducted on a three year cycle, the IESO is launching a 2016 engagement (“Prudential Review”) to review the current real-time market prudential framework. 

The prudential framework affects all market participants including those who pay the costs of providing prudential support and also those who are subject to a default levy(ies) in the event of any insufficient prudential support.  The IESO reviews the prudential framework periodically to determine if the current framework is adhering to the framework’s pillars which strives to balance the following: a) fairness to all market participants; b) costs to participants for posting collateral; and c) costs/risks of default levies issued to all market participants.

In order to begin the 2016 Prudential Review, the IESO is asking stakeholders to provide their views and feedback on the current framework.  In particular, the IESO is interested hearing from stakeholder perspectives which include:

  • is the current framework adhering to the framework’s pillars;
  • suggestions to evolve the framework; and
  • any other aspects that should be considered

Please note that for the 2016 Review, the scope excludes the prudential frameworks for Demand Response and Transmission Rights.

In the autumn of 2016, the IESO will prepare a preliminary Prudential Review report which will review the current framework and the feedback received along with recommended changes (if any).  The IESO may schedule a meeting in late 2016 to review and discuss the preliminary report and may invite further feedback.

The IESO is aiming to develop a final Prudential Report by year’s end.

All comments and enquiries in this stakeholder engagement can be directed to engagement@ieso.ca.

Schedule of Activities 

Date
Agenda
Minutes

Activities

Expected Actions

December 2016

2016 Prudential Framework Final Report

 

October 31, 2016

Stakeholder Feedback

 

October 6, 2016

Feedback Requested on the 2016 Prudential Framework Report

 

August 18, 2016

2016 Prudential Framework review – next steps

 

August 8, 2016

Deadline for Stakeholder Feedback

Feedback will be posted on IESO stakeholder webpage (with permission)

August 4, 2016

Reminder for Feedback

 

July 7, 2016