Corporate Power Purchase Agreements (C-PPAs) for ICI Participants

Settlements

The IESO oversees and reconciles more than $18 billion in funds from the IESO-administered markets, related services, programs and electricity charges. The IESO places the highest importance on maintaining the reliability of its settlement systems and processes as well as ensuring the complete accuracy of these core functions.

Corporate Power Purchase Agreements (C-PPAs) for ICI Participants

Overview

In June 2025, Ontario Regulation 429/04 (the “Regulation”) was amended to create a new framework that enables large electricity consumers to access clean electricity through Corporate Power Purchase Agreements (C-PPAs). These changes take effect with the 2026–2027 base period.

The framework supports participants in the Industrial Conservation Initiative (ICI) program by allowing them to enter into C-PPAs with non-emitting generators located anywhere in Ontario. This initiative helps consumers manage electricity costs and meet clean energy goals, while providing new revenue opportunities for generators.

Eligibility and Participation Requirements

To participate, both the large electricity consumer and the generator must be market participants and meet the requirements set out in the Regulation.

Participants are required to submit prescribed forms and supporting documentation to confirm eligibility and regulatory compliance. Submissions include, but are not limited to:

A signed Eligible Purchase Agreement
An attestation confirming that participants meet, and will continue to meet, the Regulation’s requirements throughout the base period

How C-PPAs Work

C-PPAs are like virtual power purchase agreements (VPPAs), where financial settlement is separate from the physical delivery of electricity. Under these agreements, the generator’s output can be used to offset the consumer’s demand during peak periods, which may help reduce Global Adjustment charges under the ICI program.

This structure offers participants a flexible tool to manage electricity costs and support clean energy goals, while providing new revenue opportunities for generators of non-emitting electricity.

The Independent Electricity System Operator (IESO) is responsible for administering both the ICI program and the C-PPA framework.

Key Dates

Submission Type	Deadline
Initial C-PPA Submission Package: Eligibility Forms and Requirements	March 30th each year
Post-base period submissions	Within 15 days after the base period ends

Resources

The IESO will provide guidance materials to support participants, including:

C-PPA Program Guide (coming soon)
Prescribed Forms (coming soon)
FAQs (coming soon)

These documents will be made available on this webpage.

Stakeholder Engagement

To help participants understand the C-PPA framework, the IESO will host a stakeholder engagement session. Details, including session dates and registration links, will be posted once available.

Stay Informed

To receive updates on the C-PPA framework, subscribe to the C-PPA distribution list.

For inquiries, please contact: corporateppa@ieso.ca