Intertie Transactions Role in Setting Real-Time Price (SE-18)The market clearing price for energy and operating reserve in the IESO-administered market was established by the original market design to be the marginal resource cost based on the offers and bids submitted. Since imports and exports are scheduled an hour in advance and fixed for the entire dispatch hour, they cannot be dispatched on a 5-minute basis and are as a result not a marginal resource in real-time. Therefore, under this original market design premise, intertie transactions are not able to set the market clearing price (MCP) in the real-time market. However, imports and exports can be scheduled/dispatched within the timeframe of the pre-dispatch sequence and therefore can set the pre-dispatch price. This discrepancy in price determination raises concern over whether the prices are being calculated appropriately and fairly.
At the December 3rd, 2005 IESO Board meeting, consistent with recommendations received from stakeholders, the Board directed IESO staff to focus attention to resuming and advancing work with stakeholders on whether intertie transactions should be considered in the calculation of the Ontario Market Clearing Price
Stakeholder Engagement Plan
Stakeholder Engagement Plan (Revision 1, February 6, 2007)
For more information on this stakeholder initiative or to participate in the next meeting, email firstname.lastname@example.org.
Working Sessions and Proposed Activities
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