RT-GCG Cost Recovery Framework

Transcription

1 IESOTP 298-3b RT-GCG Cost Recovery Framework Technical Panel August 9, 2016

2 Agenda 1. Stakeholder Engagement Update 2. Summary of Changes to Market Rules 3. Next Steps 2

3 Stakeholder Engagement Update IESO will make the following changes in response to stakeholder feedback, which will be reflected within market manuals: change the methodology for electricity consumption from universal to facility-specific base consumption volume on a cold start to account for maintaining vacuum include the high and low values when calculating all averages utilize an exchange rate where appropriate for planned maintenance 3

4 Stakeholder Engagement Update July 13 stakeholder meeting IESO presented changes in response to stakeholder feedback as well as the start volume definition and methodology for other fuel types (biomass and oil) IESO requested written feedback by July 22 nd - no feedback was received 4

5 Summary of Changes to Market Rules 5

6 Ch. 7 s. 2.2B.1.4C - Other data Stakeholder feedback: language still too broad; include reasonableness standard; include timeframe (10 business days) by which IESO must complete review; data requests should respect legally binding agreements IESO revision: IESO data requests must be reasonable ; removal of including, without limitation ; remove from the list of entities: agent, partner and other associated entity ; include the registered market participant 2.2B.1.4C any other data, as reasonably requested by the IESO, that is relevant to determine eligible costs in accordance with section 2.2B.4 including, without limitation, data from the registered market participant, any affiliate, service provider, or agent, partner, contractual counter-party, or other associated entity. best interests of both the IESO and MPs to allow ample time to determine eligible costs 6

7 Ch Point of Initiation/Start Volumes Stakeholder feedback: point of initiation is a significant term which should be a defined term in Chapter 11 IESO revision: IESO has included a defined term in Chapter 11 for start volume (a concept previously referred to within the description of point of initiation ), which applies to all technologies Consequential edit to combined guaranteed costs definition 7

8 Ch. 7 s. 2.2B.5 Review of Cost Values Stakeholder feedback: frequency and process for review of pre-approved costs should be specified within the market rules IESO revision: IESO has included the following language in section 2.2B.5: The IESO shall review the pre-approved cost values and methodologies at least once every 3 years. The first review shall be completed no later than 3 years from the effective date of this section. Inclusion of the detailed process or circumstances that would trigger a review within the 3 year period could be too prescriptive/limiting - IESO does not propose to make this change 8

9 Ch. 9 s. 4.7B.5 - Formulas Stakeholder feedback: language in formulas should more precisely reflect the language in stakeholder materials word index should be removed from pre-approved fuel index price since some technologies do not have an index cost types should be specified as either universal or facilityspecific IESO revisions: The IESO has incorporated the changes in the first two bullets With respect to the third bullet costs are not consistently universal or facility-specific for all technologies, therefore the IESO does not propose to make this change 9

10 Next Steps IESO requests that the Technical Panel vote to recommend the rule amendments to the IESO Board (August 31 st Board meeting) Draft market manuals and cost submission form - available for comment upon release in the Fall, pending IESO Board approval of market rule changes Implementation of the market rule amendment is targeted for the fourth quarter of 2016 pending IESO Board approval 10