RT-GCG Cost Recovery Framework Status Update to TP September 13, - - PowerPoint PPT Presentation

RT-GCG Cost Recovery Framework

Status Update to TP September 13, 2016 IESOTP 299-3b

1. Rationale for Program Change 2. Engagement Timeline 3. Planned Maintenance 4. Market Rules Timeline and Next Steps

Agenda

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• Current RT-GCG Program untenable

– Results from past GCG audits showed fundamental issues with participants interpreting market rules, cost eligibility and transparency

• New cost recovery framework for the Real Time

Generation Cost Guarantee (RT-GCG Program)

• Will create a better understanding of incremental

costs eligible to be submitted for recovery under the program and reduce the scope and frequency of audits

• Pre-approved cost values and methodologies

reviewed at least every three years

Rationale for Program Change

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• Series of regular stakeholder meetings from

October 2015 to July 2016

– Consultations will continue until at least end of year

• Consultation at each stage of development from

a conceptual proposal to determined values

– Supported by data – Clear principles and criteria for determination of eligible costs – All details of design, market rules and market manual content have been developed through engagement and presented to Technical Panel

Engagement Timeline

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• Between June 7 and June 28, all Program

participants were asked to provide information and appropriate supporting documentation relating to planned maintenance.

• Once information provided to the IESO, one-on-
• ne meetings scheduled for the IESO (and

technical consultants) to discuss the information provided and ensure a common understanding

• f the scope, schedule, drivers and costs for

planned maintenance activities included in participant’s cost submissions.

Planned Maintenance

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• 5 of 14 participants provided required data by

early July, and IESO and consultants met with them in early August

• IESO received data from another 4 participants

and met with them late August/early September

• IESO waiting for data from remaining 5

participants

• IESO cannot finalize pre-approved values until

after rules are approved

Planned Maintenance

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• April 26 TP meeting

– Introduced proposed market rule amendment and presented draft rule language

• May 31 TP meeting

– Incorporate Panel feedback and presented rule amendment proposal – Presented details of proposed market manuals in response to the Panel’s request – Majority of Panel voted in favour to post for stakeholder comment

• August 9 TP meeting

– Responded to feedback from stakeholders and presented proposed rule changes – TP members raised issues concerning:

• Stakeholder interest in providing input on Planned Maintenance
• Specific market manual language

– Vote to recommend to Board deferred to September 13 TP meeting

Review of Proposed Market Rule Amendment

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• September 13 TP

– Proposed market rule amendment is substantively unchanged since August 9 TP

• Minor changes to market rule amendment to ensure it is clear that

the rules take precedence over the manuals

– Vote to recommend to IESO Board for Approval – IESO will inform Panel once manuals are posted for comment – IESO will review market manual content through RT- GCG stakeholder engagement prior to posting

Next Steps

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