Market Evolution Program

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Market Evolution Program
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Topics

• Overview of the Market Evolution Program
• Consultation Plan for Phase 1

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Market Evolution Program

• A group of initiatives designed to move Ontario
  market forward over 2003/2004
• Considered together for reasons of funding,
  initial resourcing and to ensure they are
  developed in an efficient and consistent fashion
• Consist of deferred features and other
  opportunities to improve the market identified by
  stakeholders and the IMO based on the first six
  months of operation

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Objectives

• Improve price transparency and operational
  stability while ensuring reliability
• Improve overall operation of IMO-administered and
  retail markets
• Meet new legal and regulatory requirements
• Consistency with Standard Market Design as far as
  possible

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Objectives

• Favour options that
• use existing successfully deployed solutions
• provide for speed of implementation
• are adaptable to regulatory and legislative
  changes

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Initiatives

• Day ahead market
• Multi-interval optimization
• Short term Resource Adequacy
• Long term Resource Adequacy
• Environmental Information Tracking
• Wholesale/Retail Market Integration
• Locational Marginal Pricing

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Approach

• Phase 1
• Feasibility of each initiative
• Recommendation on whether and in what form
  initiative should proceed
• Phase 2
• Design (rules/procedures/system requirements) and
  implementation planning

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Timing of Phases
Mar
Apr
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Phase 1 Activities

• Establish likely implementation approaches
• Identify market operating cost implications
• Identify SMD and other convergence opportunities
• Stakeholder findings
• Make recommendation to IMO Board

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Phase 1 Process
Recommendation to IMO Board
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Program Organization
Steering Committee
Program Manager Steve Mullins

• Jason Chee-Aloy
• short/long term resource adequacy

• Edward Arlitt
• wholesale/retail

• Len Kula/Mark Wilson
• day ahead market
• better optimization

• Hok Ng
• environmental tracking

• Mike Falvo
• locational marginal pricing

• Drew Phillips
• stakeholder process

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Discussion Papers

• Week of Jan 30
• Day ahead market/Multi-interval optimization
• Short Term Resource Adequacy
• Week of Feb 21
• Wholesale/Retail Integration
• Week of Mar 14
• Long Term Resource Adequacy
• Environmental Tracking

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Short Term Resource Adequacy

• Measures for this summer
• Coordinating exercise includes looking at current
  initiatives, such as the hour ahead dispatchable
  load, as well as new ones

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Locational Marginal Pricing

• Initial data analysis to begin early March
• Report on nodal price behaviour up to this point
  in market operation completed early April
• No implementation until October 2004 at the
  earliest

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Wholesale/Retail

• Issues under investigation
• A more accurate assignment of a portion of the
  wholesale market prudential risk to the
  underlying sources of financial risk
• Opening the door to future demand response
  products that retail customers can participate in
  while providing a reliability benefit
• Ensuring that wholesale/retail market boundary
  keeps pace with emerging technologies such as
  retail-level interval metering and microgeneration

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MEP Phase 1 Consultation Plan
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Scope

• Set out objectives, activities and timelines to
  facilitate stakeholder input to Phase 1
• Develop a consultation plan to be used for Phase
  2
• Use consultation framework of Market Advisory
  Council, its Standing Committees and other forums
  as per the Consultation Handbook

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Objectives

• Awareness and education
• Opportunity and access to information
• Issue identification and consensus building
• Feedback and documentation

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Challenges

• Short timelines in some cases (e.g. short term
  resource adequacy)
• Infrequently scheduled MAC and Standing Committee
  meetings

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Proposed Solution

• Centralized repository for all MEP documents -
  Market Evolution Program web page
• Email notification to MAC members when new
  information is posted
• Email IMO.Consultation_at_theimo.com with comments
• Call dedicated IMO consultation support line to
  discuss/explain further (905-403-6931)

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What will be posted?

• Discussion papers/current thinking
• Background information
• Any IMO Board decisions affecting the MEP
• Any presentations given to stakeholder groups
  during the consultation
• Presentations will be available for viewing (with
  audio) using Windows Media Player

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Phase 2 Consultation Plan

• Looking for volunteers to form a working group to
  develop a Phase 2 Consultation Plan
• Draft plan for presentation at Feb 18 MAC
• Final plan available by Mar 5 MOSC

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References

• MEP Phase 1 Consultation Plan
• Market Evolution Program Definition Document