Market Renewal Program Implications to Electricity Supply Contracts
The IESO is committed to working with electricity supply contract counterparties that are market participants to understand contract implications and address any changes throughout the design of the Market Renewal Program (MRP).
This web page will be updated on a regular basis to include information about group meetings and webinars that will be taking place. In addition, this webpage will include past presentation materials, webinar recordings, feedback and responses, as well as any other non-confidential information that may be relevant to all contract counterparties or broader stakeholders.
The IESO continues to encourage contract counterparties to ask questions related to their contract by emailing Contract Management.
| Term Sheets | Webinars | Feedback and Responses |
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July 2024: September 2024: September 2024: July 2024: |
November 2023: April 2019: |
February 2024: October 2023: February 2020: |
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June 2024: February 2024: September 2019: |
March 2024: August 2021: |
February 2020: |
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September 2024: |
December 2023: |
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September 2024: |
February 2023: |
April 2024: |
Approach to Address the Impacts of the Market Renewal Program (MRP) on Electricity Supply Contracts Settled by Local Distribution Companies (LDCs)
This update is for IESO-contracted suppliers (the “Suppliers”) for generation facilities connected to the distribution system and for which payments are administered by Local Distribution Companies (the "LDC-Settled Contracts"). These contracts include most FIT and HCI contracts, as well as certain HESOP, LRP and RESOP contracts where the Suppliers are not Market Participants.
These LDC-Settled Contracts contain references to the Hourly Ontario Energy Price (“HOEP”) which will be replaced with a successor price following the implementation of the IESO’S Market Renewal Program (“MRP”). The replacement of HOEP will not affect the Contract Price for supplied electricity. No amendments to LDC-Settled Contracts will be required.
The Retail Settlement Code, as issued and maintained by the Ontario Energy Board (the “OEB”), determines the price(s) used by LDCs in the settlement of connected retail customers and generators. To facilitate the implementation of MRP, the OEB has made amendments to Appendix A of the Retail Settlement Code which will come into force on the date that MRP goes live. This replaces references to HOEP with a new uniform price described in Appendix A to the Retail Settlement Code as the “Ontario Electricity Market Price”.
The Ontario Electricity Market Price will be the HOEP successor price. This maintains the linkage of the price used in contract settlement with the price used for LDC settlement.
The Ontario Electricity Market Price will be calculated as the sum of the day-ahead market Ontario Zonal Price and the Load Forecast Deviation Adjustment as determined for each hour in accordance with the IESO market rules. The OEB’s Notice of Amendments to Codes is provided below for your reference:
The expected ‘go-live’ date for MRP is May 1, 2025. The replacement of HOEP with the Ontario Electricity Market Price will take place as of MRP go-live, upon the IESO’s issuance of an advisory notice following the go-live date confirming “market transition completion”.
Please contact mr.contractmanagement@ieso.ca if you have any questions.