Control Action Operating Reserve Study (SE-72)

Reliability standards allow the IESO to consider the demand relief that would result from the use of out-of-market control actions to meet the Ontario operating reserve requirement. The demand relief from these control actions, when contributing to meeting the Ontario operating reserve requirement, is termed Control Action Operating Reserve (CAOR).

The IESO is reviewing the pricing and structure of the CAOR standing offers to address the following concerns raised by stakeholders regarding the current pricing and structure:

Whether the current pricing principle and structure of operating reserve is correct and/or interfering with market participant operating reserves; and
The market and pricing impact of the removal of CAOR from pre-dispatch in September 2008.

This initiative will be of specific interest to all market participants who are transact in the operating reserve market. As CAOR standing offers affect operating reserve market prices and energy market prices, this initiative will be of general interest to all market participants.

This stakeholder engagement plan has been developed to define the opportunity for stakeholder involvement in the study of control action operating reserve.

Stakeholder Engagement Plan
Stakeholder Engagement Plan (Revised, March 25, 2009)
Stakeholder Engagement Plan (Revised, September 30, 2010)
Stakeholder Engagement Plan (Revised, April 7, 2011)

For more information on this stakeholder initiative or to participate in the next meeting, email stakeholder.engagement@ieso.ca.

Proposed Activities

Date Agenda/Minutes	Supporting Material	Expected Actions
2012	Implementation of recommendation
December 2011	Provide recommendations based on analysis to IESO management and Board (if required)
October 11, 2011 Agenda Minutes	Item 1: Proposed Operating Reserve Demand Curve Supply Offers � 30-minute Reserve Item 2: Proposed Operating Reserve Demand Curve Supply Offers � 10-minute Reserves Item 3: Proposed Scope of Analysis of ORDC Supply Offers • Presentation
September 13, 2011	Due date for comments on IESO Proposal on Incorporating Operating Reserve Demand Curve as Standing Supply Offers Stakeholder Feedback • Ontario Power Generation
August 24, 2011 Agenda Minutes	Meeting Item 1: IESO Position Paper - Summary of stakeholder comments and IESO Response Item 2: IESO Proposal on Incorporating Operating Reserve Demand Curve as Standing Supply Offers • Presentation (Revised)
May 19, 2011	• APPrO • Ontario Power Generation
May 5, 2011	• Communication • Position Paper	Stakeholders to provide written feedback by May 19, 2011.
April 7, 2011	Stakeholder Engagement Plan revised	Stakeholders to provide written feedback by April 15.
October 21, 2010	Stakeholder Feedback • APPrO • Ontario Power Generation • TransCanada • Bruce Power • Communication	Stakeholders to provide written feedback. All feedback to be posted
September 30, 2010	Publish revised stakeholder plan, post "CAOR-Study Questions"(prepared by IESO) and "CAOR and Reserve Shortage Pricing in Neighbouring Markets" (prepared by OPG) • Communication • Revised Stakeholder Plan • CAOR-Study Questions(prepared by IESO) • CAOR and Reserve Shortage Pricing in Neighbouring Markets(prepared by OPG)	Publish documents for stakeholder feedback.
April 9, 2009	Deadline for written input from stakeholders on the revised stakeholder engagement plan • No stakeholder comments received	IESO to post feedback from stakeholders
March 25, 2009	Stakeholder Engagement Plan updated
February 3, 2009	Presentation to Market Pricing Working Group on Analysis Results	Dialogue – IESO to gather feedback from stakeholders
December 18, 2008	Deadline for written input from stakeholders on the stakeholder engagement plan • No stakeholder comments received	IESO to post feedback from stakeholders
December 4, 2008	Post and communicate stakeholder engagement plan	Stakeholders to provide written feedback
December 2, 2008	Work plan and next steps discussed with the Market Pricing Working Group • Work Plan	Deliberation –stakeholders to provide input
November 14, 2008	Deadline for comments on the pricing options presented • Stakeholder comments on options for pricing CAOR	IESO to post feedback from stakeholders
October 29, 2008	Discussions with the Market Pricing Working Group regarding the options for pricing control action operating reserve • Presentation • Description Paper • CAOR Pricing Options	Dialogue – stakeholder input
August 19, 2008	Initial discussion of the issue at Market Pricing Working Group	Dialogue – stakeholder input