Regulation - LGIC

Update to Integrated Power System Plan Development Requirements: Proposed Amendment to O. Reg. 424/04 (Integrated Power System Plan)

Regulation Number(s):
424/04
Bill or Act:
Electricity Act, 1998
Summary of Proposal:
Ontario Regulation 424/04 (Integrated Power System Plan), made under the Electricity Act, 1998, sets out specific requirements, including relevant timing, for the Ontario Power Authority (OPA) to follow in developing the Integrated Power System Plan (IPSP) for Ontario. The IPSP outlines the investments necessary to maintain a clean, reliable and affordable supply of electricity in the province over the next 20 years. In creating its IPSP, the OPA must also adhere to any Directive issued by the Minister of Energy issued under s.25.30(2) (Supply Mix Directive).

Sections 2(1)4 and 5 of the regulation were intended to facilitate and encourage a market-based response to meet the electricity needs of the province. However, since these requirements were first developed, it became apparent that price signals in the marketplace alone would be insufficient to encourage generators to invest in the province at sufficient levels and that strategic procurement by the OPA as directed by the Minister of Energy would be necessary.

Sections 2(1) 4 and 5 currently read as follows:

Development of integrated power system plan
2. (1) In developing an integrated power system plan under subsection 25.30 (1) of the Act, the OPA shall follow directives that have been issued by the Minister under subsection 25.30 (2) of the Act and shall do the following:

[. . . ]

4. Identify and develop innovative strategies to encourage and facilitate competitive market-based responses and options for meeting system needs.

5. Identify measures that will reduce reliance on procurement under section 25.32 of the Act.

In order for the requirements of the regulation to be more accurately aligned with the electricity sector marketplace and government policy framework, the Ministry of Energy is proposing to amend the sections to read as follows:

Development of integrated power system plan
2. (1) In developing an integrated power system plan under subsection 25.30 (1) of the Act, the OPA shall follow directives that have been issued by the Minister under subsection 25.30 (2) of the Act and shall do the following:

[. . . ]

4. Identify and develop innovative strategies to encourage and facilitate cost effective responses and options for meeting system needs.

5. Identify measures that will enhance the cost effective contribution of resources that are subject to a procurement contract entered into under section 25.32 or 25.35 of the Act.

Further Information:
Proposal Number:
11-MEI001
Posting Date:
February 17, 2011
Comments Due Date:
April 3, 2011
Contact Address:
Andrea Stoiko
Ministry of Energy
Regulatory Affairs and Strategic Policy
880 Bay Street
Toronto Ontario
M7A 2C1