Operations
Intertie trading provides the IESO with operational and planning flexibility in its day-to-day operations, and significantly enhances the reliability and cost-effectiveness of Ontario’s electricity system. Transmission Rights (TRs) were introduced as a risk management tool to enable traders to hedge the financial risks associated with uncertain congestion at the interties. These financial instruments were expected to contribute to the efficient and reliable operation of Ontario’s electricity system, by facilitating efficient electricity trade and integration with neighbouring markets. It is important to understand how TRs promote efficient intertie trading in today’s market.
The Ontario TR market was established at market opening in 2002 and has since been operating largely based on the original design. Over the years, the IESO has received recommendations and feedback regarding potential inefficiencies of the TR market observed by the Ontario Energy Board’s Market Surveillance Panel (MSP), IESO internal business units and external market participants. In response, the IESO has made changes to the TR market to address issues and also committed to conduct a more fulsome review of the market to determine whether it is achieving its intended purpose.
More recently the Market Renewal Program (MRP) has proposed changes to the energy market which will have a significant impact on TRs. These changes include replacing the uniform Market Clearing Price (MCP) with Locational Marginal Pricing (LMP), shifting TR market settlements from real-time to day-ahead, and changes to the calculation of congestion pricing. It is important that the TR market effectively integrates these changes into its design to ensure alignment and compatibility with the future renewed market.
As part of the TR Market Review stakeholder engagement, the IESO will work with stakeholders to determine what changes may be required to maximize the efficiency of the TR market and to ensure that the TR market is aligned and compatible with the renewed energy market in the future.
Additional details on the IESO’s plans to engage stakeholders throughout the process can be found in the engagement plan. All comments and enquiries on this engagement can be directed to engagement@ieso.ca.
| Date | Engagement Activity | Expected Actions |
|---|---|---|
|
February 16, 2022 |
Transmission Rights Market Review Update |
|
|
June 30, 2021 |
||
|
April 15, 2021 |
Deadline for stakeholder feedback on materials presented at March 23rd webinar. |
|
|
March 23, 2021 |
The IESO will present further information on the Transmission Rights Market Review Stage 3 opportunities and information regarding the conclusion of this engagement. |
Due to a recording issue, the slides were not included in this webinar recording. The approximate times of when the slides were displayed is provided in the video description. This webinar was presented during the IESO's March stakeholder engagement sessions, see full agenda for more information. |
|
January 18, 2021 |
Deadline for stakeholder feedback on materials presented at December 14th webinar. March 4, 2021: IESO Response to Stakeholder Feedback |
|
|
Q4 2020 |
Publish draft report summarizing findings and next steps for stakeholder comment |
|
|
December 14, 2020 |
Stakeholders will be presented with a draft set of near-term changes for feedback, and discussion on longer-term improvements to the TR market will begin as part of Stage 3 of the TR Market Review. |
Recorded Presentation
This webinar is being presented during the IESO's December stakeholder engagement sessions, see full agenda for more information. |
|
November 17, 2020 |
Deadline for stakeholder feedback on materials presented at October 27th webinar. No stakeholder feedback received |
|
|
October 27, 2020 |
Engagement Webinar The IESO will provide updates on the progress of Stage 2 of the Transmission Rights Market Review, including a summary of stakeholder feedback gathered through focused discussions with interested stakeholders and work underway to review the methodology to determine the number of TRs to auction. No stakeholder feedback received |
This webinar is being presented during the IESO’s October stakeholder engagement sessions, see full agenda for more information. |
|
October 8, 2020 |
||
|
October 6, 2020 |
||
|
September 15, 2020 |
IESO Response to Stakeholder Feedback from July 22 Webinar Now Posted |
|
|
August 13, 2020 |
Stakeholder feedback on materials presented at July 22nd webinar. |
|
|
July 22, 2020
|
Engagement webinar Review feedback on Stage 1 presentation and begin Stage 2 of the Review focussed on potential near term improvements that could be implemented |
This webinar is being presented during the IESO's July stakeholder engagement meetings. See agenda for more information. |
|
June 11, 2020 |
Stakeholder feedback on materials presented at May 21st webinar. |
|
|
May 21, 2020
|
Engagement webinar Review feedback following April 2 MDAG webinar presentation and begin discussions about Stage 1 of the focussing on the value assessment |
This webinar is being presented during the IESO's May stakeholder engagement meetings. See agenda for more information. |
|
May 2020 |
Transmission Rights Market Review initiative re-launched as separate stakeholder engagement
|
