IESO Engagement Update –
June 13, 2023
This engagement update provides a snapshot of all active IESO
engagement activities. It also helps support a greater understanding
of linkages between engagements, and a foundation for more
comprehensive and integrated updates. For the most recent
information, visit the individual engagement links or the Engagement
Initiatives webpage.
Forecasting and Planning
Engagements to support provincial and regional electricity planning over the next 20 years.
Active Engagement Current Status Next Steps
Annual Acquisition Report • A webinar was held in February to • The need for an
The Annual Acquisition Report (AAR) provide an overview of key topic additional engagement
translates planning and operational areas of the 2023 AAR and to seek session will be
information into a series of input on the future participation of determined prior to
procurement and market activities existing resources publication
using the Resource Adequacy • Thirteen submissions were received
Framework. following the webinar and have
Engagement Lead: Trisha Hickson been posted to the engagement
Related Active Engagements: webpage
• Resource Adequacy • An IESO response to feedback
document was posted on June 6
Regional Planning – Burlington • The final Burlington to Nanticoke • Engagement has begun
to Nanticoke Scoping Assessment Outcome on the development of
Regional electricity planning is Report was posted in December the IRRPs and
underway in this region. recommending the development of individual updates will
Engagement Lead: Rouselle Gratela Integrated Regional Resource Plans be provided separately
Related Active Engagements: (IRRPs) for the Hamilton, Brant and for each sub-region in
• N/A Caledonia-Norfolk sub-regions future updates
1
Active Engagement Current Status Next Steps
Regional Planning – Ottawa Area • The final Scoping Assessment • Engagement on the
Sub-Region Outcome Report was posted in Ottawa Area sub-region
Regional electricity planning is March, recommending the IRRP will begin in Q3,
underway in this region. development of an Integrated 2023
Engagement Lead: Sari Gerwitz Regional Resource Plan (IRRP) for
Related Active Engagements: the Ottawa Area sub-region
• N/A • The report also concluded that no
further coordinated regional
planning is required for the Outer
Ottawa East and West Sub-regions
Regional Planning – Toronto • The final Scoping Assessment • Engagement on the
Regional electricity planning is Outcome Report was posted in Toronto Region IRRP
underway in this region. March, recommending the will begin in Q3, 2023
Engagement Lead: Sari Gerwitz development an Integrated
Related Active Engagements: Regional Resource Plan (IRRP) for
• N/A the Toronto region
Regional Planning – Windsor- • The final Windsor-Essex Scoping • Engagement will
Essex Assessment Outcome Report was continue on the
Regional electricity planning is posted on May 17 with the IESO’s development of an
underway in this region. responses to feedback received. IRRP for the region
Engagement Lead: Rouselle Gratela • The report concludes that an
Related Active Engagements: Integrated Regional Resource Plan
• N/A (IRRP) be undertaken for the
Windsor-Essex region
Transmission Losses • The IESO posted a draft • An IESO response to
This engagement will review IESO transmission losses guideline feedback document will
and Hydro One's practices on how document in July 2021 for be posted in Q3, 2023
transmission losses are considered in stakeholder review and feedback • Changes will be made
planning and operation of the system, • Two feedback submissions were to the guideline
a comparison of these practices to received and the IESO is developing document and the IESO
those used in other jurisdictions, and a response to feedback will post the final
seek stakeholder feedback on version upon closing
potential improvements to these the engagement
practices.
Engagement Lead: Colin Campbell
Related Active Engagements:
• N/A
IESO Engagement Update, June 13, 2023 2
Resource Acquisition
Engagements to ensure we have the tools and processes to acquire the resources we need to maintain a
reliable and efficient system.
Active Engagement Current Status Next Steps
Capacity Auction Enhancements • A webinar was held on May • A webinar will be held on
The annual Capacity Auction is one of the 25 to present Stream 2 draft June 21 to discuss feedback
procurement mechanisms included in the market rules and manuals received on items
IESO’s Resource Adequacy Framework and review feedback presented at the May 25
and serves as the short-term balancing received from the April webinar, including the
mechanism in the framework, securing webinar Stream 2: Draft Market
the capacity required to meet Ontario’s • No feedback was received by Rules and Market Manual
short-term resource adequacy needs. the June 8 submission Amendments
Engagement Lead: Trisha Hickson deadline
Related Active Engagements:
• Resource Adequacy
Development of an IESO Competitive • This engagement was put on
Transmission Procurement Process hold and the IESO is
The IESO is seeking feedback to aid in the currently determining the
development of a competitive next steps associated with
transmission procurement process. this initiative
Distributed Energy Resources (DER) • A webinar was held on • An IESO response to
Market Vision and Design Project January 25 to review the feedback document will be
The IESO is seeking feedback from results of the enhanced posted
stakeholders on how to cost-effectively model study and • The IESO is aiming to
enhance the value DERs can provide to recommendations from the finalize the Foundational
Ontario’s electricity system by expanding Distributed Energy and Enhanced Model
participation in the wholesale markets. Resources Market Vision and proposals in Q3, 2023
Engagement Lead: Colin Campbell Design Project report
Related Active Engagements: • Two feedback submissions
• DER Potential Study were received and have
• DER Roadmap been posted to the
• Enabling Resources Program
• Hybrid Integration Project engagement webpage
• Innovation and Sector Evolution
White Paper Series
• Resource Adequacy
IESO Engagement Update, June 13, 2023 3
Active Engagement Current Status Next Steps
Distributed Energy Resources (DER) • The findings of the DER • A final engagement
Potential Study Potential Study will be summary report will be
To help inform our path forward in used in the ongoing DER posted by the end of June
enabling DERs, the IESO has Roadmap work • This engagement has now
commissioned a DER Potential Study. The concluded
primary objectives of the study are to
determine the types and volumes of DERs
that exist and can be expected to emerge
in Ontario over a 10-year timeframe, as
well as identify the potential for these
resources to provide wholesale electricity
services.
Engagement Lead: Colin Campbell
Related Active Engagements:
• DER Market Vision & Design Project
• DER Roadmap
• Enabling Resources Program
• Hybrid Integration Project
• Innovation and Sector Evolution
White Paper Series
• Resource Adequacy
Distributed Energy Resources (DER) • A joint meeting with the • An IESO response to
Roadmap Ontario Energy Board was feedback document for
The IESO is seeking feedback on the held on May 26 on the DER the RPPR August webinar
development of a roadmap to set out Integration Framework for will be posted to the
approaches and expected timing for Energy Innovation where engagement page
enhancing DER participation in the IESO- updates were provided on • Feedback on the May 26
administered markets for the cross-cutting issues and webinar is due by June
products/services they are technically the work of the two 26; the IESO and OEB will
capable of providing. organizations as it relates work to post a response
Engagement Lead: Colin Campbell to DERs to feedback document in
Related Active Engagements: • See also the separate advance of the next joint
• DER Market Vision & Design Project update for the meeting, targeted for Q4,
• DER Potential Study Transmission-Distribution 2023
• Enabling Resources Program Coordination Working • See also the separate
• Hybrid Integration Project
• IESO York Region Non-Wires Group update for the
Alternatives Demonstration Project Transmission-Distribution
• Resource Adequacy Coordination Working
Group
IESO Engagement Update, June 13, 2023 4
Active Engagement Current Status Next Steps
Hybrid Integration Project • At the February Technical • An IESO response to
The IESO is seeking feedback on the Panel meeting, the enabling feedback document
development of participation model(s) to co-located hybrid model following the January
enable hybrid resources in the IESO- market rule amendments meeting will be posted
administered markets and have the were voted to recommend to • Target effective date for
capability to support Ontario’s future the IESO Board for approval implementation of the Co-
system needs. The changes will be Located Model in the IAMs
implemented after the implementation of is June, 2023
the Market Renewal Project.
Engagement Lead: Colin Campbell
Related Active Engagements:
• DER Market Vision & Design Project
• DER Potential Study
• DER Roadmap
• Enabling Resources Program
• Innovation and Sector Evolution
White Paper Series
Long-Term RFP • On May 3 and 4, technical • A technical meeting will be
The IESO is engaging stakeholders on the meetings and engagements held on June 14, led by the
development of a Long-Term RFP (LT were held, including a IESO Planning Team to
RFP) that will seek resources that can be presentation by the Ministry review the IESO’s LT1
in service between 2026 and 2028 to of Energy on the Duty to Deliverability Guidance
address global and regional needs. Consult provisions document and answer
Engagement Lead: Colin Campbell • Twenty feedback proponent questions on the
Related Active Engagements: submissions were received LT1 Deliverability
• Resource Adequacy following the May 4 webinar Assessment Process
• Hybrid Integration Project and have been posted to the • An engagement webinar
• Market Renewal Program (MRP)
Implementation engagement webpage will be held on June 29
• An IESO response to where the IESO will address
feedback document will be a number of open design
posted for the feedback issues for the LT1 RFP and
received from the May provide a walkthrough of
meeting the draft LT1 RFP
procurement documents
posted on the IESO website
on May 26
IESO Engagement Update, June 13, 2023 5
Active Engagement Current Status Next Steps
Resource Adequacy • Several Resource Adequacy • Next steps will be
The IESO is engaging stakeholders to initiatives such as the communicated
further develop a long-term competitive Procurements and Capacity
strategy to meet Ontario’s resource Auction Enhancements have
adequacy needs reliably and cost- branched off into their own
effectively while recognizing the unique respective engagement
needs of different resources. streams (see separate
Engagement Lead: Jason Grbavac engagement updates)
Related Active Engagements: • A Resource Adequacy
• DER Market Vision & Design Project Update was provided on May
• DER Potential Study 16 where the IESO
• DER Roadmap announced it is moving
• Enabling Resources Program
• Long-Term RFP forward with the largest
energy storage procurement
ever in Canada with 739 MW
slated to connect to the grid
by 2026, as well as a limited
number of expansions and
upgrades to existing natural
gas facilities
IESO Engagement Update, June 13, 2023 6
Operations
Engagements to ensure that Ontario’s electricity resources are operating reliably within the IESO-administered
market, while also undertaking continuous market improvements.
Active Engagement Current Status Next Steps
Adjustments to Intertie Flow • The IESO Board adopted the • A final engagement
Limits rule amendment proposal summary report will be
The IESO is proposing to add clarifying that specifies when internal posted by the end of June
language to the market rules specifying transmission constraints will • This engagement has now
when internal transmission constraints be used by the IESO to set concluded
will be considered by the IESO in intertie flow limits
setting intertie flow limits.
Engagement Lead: Jason Grbavac
Related Active Engagements:
• N/A
Cost Recovery for Integrating • The IESO filed a request for • A final engagement
System Changes approval with the Ontario summary report will be
This engagement will seek input from Energy Board in February posted by the end of June
stakeholders on how to recover costs 2022, and received approval • This engagement has now
from customers for requested services through the OEB’s Decision concluded
performed by the IESO and the and Order EB-2022-0002 in
proposed phase-in strategy. The August 2022
initiative will seek to bring greater • The IESO circulated the
alignment between the costs of the Market Manual 1.5: Market
service and the customer initiating the Registration Procedures with
request, as opposed to recovering these updates for the Reliable
costs volumetrically from all consumers. Integration Fee via baseline
Engagement Lead: Jason Grbavac 48.1
Related Active Engagements: • Effective December 8, the
• N/A IESO implemented the
Reliable Integration Fee for
activities the IESO undertakes
to reliably integrate facilities
into the IESO-controlled grid
IESO Engagement Update, June 13, 2023 7
Active Engagement Current Status Next Steps
Improving Accessibility of • At the June 2022 Technical • Stakeholders will be
Operating Reserve Panel meeting, Panel informed as soon as
The IESO is seeking feedback on an members voted unanimously possible when the next
issue related to the Operating Reserve to recommend the proposed implementation date is
(OR), whereby the amount of OR market rule amendments to confirmed
scheduled is not fully accessible. the IESO Board
Engagement Lead: Colin Campbell • On September 15, an update
Related Active Engagements: was sent to stakeholders
• N/A indicating that the earliest the
inaccessible operating reserve
settlement charge can be
implemented is Q1, 2023
Market Renewal Program (MRP) • The Implementation Working • The IESO will post
Implementation Group met on June 7 to responses to stakeholder
The Implementation phase of the discuss market participant feedback on the updated
Market Renewal Program will begin by acceptance testing, timelines Market Power Mitigation
codifying the design into the Market for posting report schema amendments
Rules and Market Manuals, and then and sample files, and charge • A webinar will be held on
proceed onto creating tools, testing, types June 22 to describe an
training and readiness for bringing the • Meeting materials are update to the Consolidated
renewed market to life. available on the Draft, present proposed
Engagement Lead: Karlyn Mibus Implementation Working categories to qualify
Related Active Engagements: Group engagement webpage experts for the
• Resource Adequacy Independent Review
• Enabling Resources
Process, and provide an
• DER Market Vision & Design Project
• Hybrid Integration overview of two new design
implementation solutions
Registration Timelines • The Timeline guide was • A final engagement
IESO Market Registration is proposing released as part of the 2023- summary report will be
new registration timeline guidelines, Q1 baseline posted by the end of June
intended to make the registration • This engagement has now
process more efficient for both the IESO concluded
and market participants.
Engagement Lead: Colin Campbell
Related Active Engagements:
• N/A
IESO Engagement Update, June 13, 2023 8
Sector Evolution
Engagements that look to the future to see how innovation, new technologies and new collaborations can
improve how we conduct our business.
Active Engagement Current Status Next Steps
Innovation and Sector Evolution • A webinar was held on • The IESO is reviewing next
White Papers February 23 to seek feedback steps on this engagement
The IESO intends to develop and on the next white paper in for the latter part of 2023
release a series of white papers to the series: Applications of
support the creation of a shared, fact- Artificial Intelligence (AI),
based understanding of emerging Machine Learning and other
opportunities and trends. Advanced Technology in the
Engagement Lead: Colin Campbell Electricity Sector
Related Active Engagements: • Responses to the AI
• DER Potential Study Whitepaper Survey were due
• DER Roadmap by March 31
• IESO York Region Non-Wires
Alternatives Demonstration Project
IESO York Region Non-Wires • The Final Year 2 • An Evaluation Report
Alternatives Demonstration Project Demonstration Program including lessons learned
The IESO, with support from Natural Rules and Contracts were will be published in Q3,
Resources Canada, is undertaking a posted on August 25 with 2023; this is the last
demonstration in York Region to explore the opening of the Initial major milestone for this
market-based approaches to secure Year 2 registration engagement
energy and capacity services from • On October 20-21, pre- and
Distributed Energy Resources (DERs) post-auction reports were
for local needs. posted for Year 2
Engagement Lead: Colin Campbell
Related Active Engagements:
• DER Market Vision & Design Project
• DER Potential Study
• DER Roadmap
• Innovation and Sector Evolution
White Papers
IESO Engagement Update, June 13, 2023 9
Active Engagement Current Status Next Steps
Interruptible Rate Pilot • The final Pilot Rules and • The Pilot is expected to
The Ministry of Energy has asked the Contract were posted on launch on July 1, 2023
IESO to design a three-year March 13, 2023
interruptible rate pilot, which if • The application window was
approved will begin on July 1, 2023, to open from March 13 to
align with the Industrial Conservation March 31, 2023
Initiative cycle.
Engagement Lead: Colin Campbell
Related Active Engagements:
• Industrial Conservation Initiative
(ICI) Update
• Distributed Energy Resources
Survey
Low-Carbon Hydrogen Strategy • A webinar was held on • Submitted proposals are
The Ministry of Energy has asked the March 30 to present a currently being reviewed
IESO to investigate and propose summary of stakeholder and the applicants will be
program options to integrate low- feedback, the final notified of the outcome in
carbon hydrogen technologies into Hydrogen Innovation Fund Q3 2023
Ontario’s electricity grid. program documents and
Engagement Lead: Colin Campbell announce the program
Related Active Engagements: application period from April
• Pathways to Decarbonization 3 to May 5, 2023
Pathways to Decarbonization • The IESO released the • On February 13, the
The IESO will inform stakeholders on Pathways to Ministry of Energy posted a
the study approach and provide Decarbonization study on consultation on the
transparency around the assumptions December 15, 2022 Environmental Registry of
that will be used in the analysis of the • The study provides Ontario seeking feedback
Ministry’s request that the IESO recommendations on a on the findings of the P2D
evaluate a moratorium on the provincial moratorium on study and in particular the
procurement of new natural gas new natural gas generation IESO’s “no-regret”
generating stations in this decade as well as findings from a recommendations
(reliability, cost, environmental potential scenario to • The comment period was
considerations) and develop an achieve zero electricity open for 90 days from
achievable pathway to phase out sector emissions that February 13 to May 14,
natural gas generation and achieve zero considers reliability, cost 2023
emissions in the electricity sector. and impacts on broader
Engagement Lead: Trisha Hickson electrification efforts
Related Active Engagements:
• 2022 Annual Acquisition Report
• DER Potential Study
• Low-Carbon Hydrogen Strategy
• Resource Adequacy
IESO Engagement Update, June 13, 2023 10
Updates on the Stakeholder Advisory Committee,
Technical Panel and Transmission-Distribution
Coordination Working Group
Group Current Status Next Steps
Stakeholder Advisory Committee • SAC held its first public meeting • SAC will continue meeting
(SAC) of 2023 on May 10 which in smaller Working
The Committee is a forum for its included introductory remarks Groups to evolve the
members to be informed of IESO by Lesley Gallinger, IESO Challenge Statements
activities and to provide timely policy President and CEO and guest • Following an open call for
advice and feedback both broadly on speaker Jason Fitzsimmons, nominations, the IESO’s
behalf of the electricity sector and their Deputy Minister of Energy Board of Directors will
constituency, directly to the IESO Board • Following a review of several decide on new members
and Executive with respect to the business updates, the at its June meeting
IESO’s mandate. Committee discussed the • The next SAC meeting
Engagement Lead: Jason Grbavac Working Groups approach for will take place on Aug 2
2023 and were provided with
an update on the 2021-2024
Conservation and Demand
Management (CDM) Framework
Technical Panel (TP) • At the June 13 Technical Panel • The next Technical Panel
The Technical Panel’s mandate is to meeting, members voted to meeting will take place
review amendments to the Market Rules recommend the proposed on July 11
for Ontario’s electricity market, and market rule amendments for
provide recommendations to the IESO the MRP Settlements Batch and
Board of Directors. the Stream 1 Capacity Auction
Engagement Lead: Trisha Hickson Enhancements to the IESO
Board of Directors for approval
• Technical Panel members also
received an educational
presentation on the Stream 2
Capacity Auction Enhancements
IESO Engagement Update, June 13, 2023 11
Group Current Status Next Steps
Transmission – Distribution • The sixth meeting of the • The IESO is reviewing
Coordination Working Group Working Group was held on feedback submissions
The Transmission-Distribution February 27 to discuss: • The next TDWG meeting
Coordination Working Group (TDWG) conceptual T-D coordination will take place on June 16
will work closely with LDCs and other protocol for a total DSO model, and will include a
stakeholders to inform the DER Market transmission and distribution presentation on LDC/
Vision and Design Project. This is a key electricity planning in Ottawa, DSO functions under the
focus area of IESO’s Distributed Energy and, a distributor’s perspective Dual Participation and
Resources (DER) integration activities on the protocol for the Dual Total DSO models
and is what much of the near-term DER Participation model
Roadmap efforts build towards. The • Four feedback submissions
TDWG will provide a forum for in-depth were received following the
engagement on T-D coordination. meeting and have been posted
Engagement Lead: Colin Campbell to the engagement webpage
Related Active Engagements:
• DER Market Vision & Design Project
• DER Roadmap
• IESO York Region Non Wires
Alternatives Demonstration Project
• Innovation and Sector Evolution
White Paper Series
IESO Engagement Update, June 13, 2023 12