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Ancillary Services Contracts
The IESO contracts for three ancillary services to help ensure the reliable operation of the power system.
- Black-start capability
- Regulation service
- Reactive support and voltage control service
Until April 30, 2010, the IESO entered into contracts for emergency demand response through an Emergency Demand Response Program. Demand response programs are now managed by the Ontario Power Authority.
The IESO is committed to a fair, competitive process to award ancillary service contracts. To receive additional information, please contact IESO Customer Relations at 905-403-6900 or customer.relations@ieso.ca.
Types of Contract and Standard Terms and Conditions
Ancillary
Service |
Description |
Relevant Terms and Conditions |
| Certified Black Start Facilities |
Certified Black Start Facilities help system reliability by being able to restart their generation facility with no outside source of power. In the event of a system-wide blackout, black start facilities would play an important role in restoration efforts by helping to re-energize other portions of the power system. |
- Monthly fixed payments
- Annual and monthly testing requirements
- Payments may be reduced if the facility fails to pass tests or fails to perform during a blackout
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| Regulation Service |
Regulation Service acts to match total system generation to total system load (including transmission losses) and helps correct variations in power system frequency.
Response times may range from tens of seconds to a few minutes.
This service is currently provided by generation facilities with automatic generation control (AGC) capability, which permits them to vary their output in response to signals sent by the IESO. |
- Minimum of ±100 MW of automatic generation control (AGC) must be scheduled at all times
- Minimum overall ramp rate requirement for Ontario is 50 MW/minute
- Payments comprise fixed and variable costs
- Payments cover the lesser of: amount of regulation service scheduled or amount of regulation service delivered
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| Reactive Support and Voltage Control Service |
Reactive Support and Voltage Control Service is contracted from generators and allows the IESO to maintain acceptable reactive power and voltage levels on the grid.
All dispatchable generating facilities that are injecting energy into the IESO-controlled grid are required to provide reactive support and voltage control service in accordance with the Market Rules. Contracts are required for market participants to be reimbursed for any additional costs incurred. |
- Prices are based on the costs of providing reactive power, including any additional costs from energy losses incurred by running at non-unity power factor, and, where applicable, costs of running generation facilities as synchronous condensers at the IESO’s request
- Testing requirements are in accordance with North American Electric Reliability Corporation (NERC) Planning Standards
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Annually, the IESO publishes costs and quantities of all contracted ancillary services.
For the period from May 1, 2009 to April 30, 2010:
- Consistent with the requirements of the Market Rules, all ancillary services contracts were for periods not exceeding 36 months.
- The emergency demand reduction program ended on April 30, 2010. Until that date Nine facilities were under contract for an aggregate of 217 MW of potential emergency demand reduction. There were no payments for this service during this period.
- Six market participants were under contract to provide reactive support and voltage control service from a total of 56 generation facilities having 233 generation units.
- Four generating stations were under contract to provide certified black start capacity.
- Ten generating stations were under contract to provide regulation service. The total contracted capability was ±238 MW with typically ±100 MW of regulation service scheduled.
- For this period, the total amount paid by the IESO for contracted ancillary services was $69,007,870. The portion paid for reactive support and voltage control service was $35,538,741
For the period from May 1, 2010 to April 30, 2011:
- Market participants that provide reactive support and voltage control service in response to IESO direction are encouraged to enter into contracts with the IESO.
- A project will be carried out to assess the ability of certain kinds of loads to provide regulation service.
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About The IESO
