Preliminary settlement statements for January 31, 2007 and the January invoice (issued mid-February) will contain costs of a recently approved ancillary service contract through charge type 550. Costs will be distributed according to the amount of energy withdrawn by Market Participants.
The IESO procures ancillary services to maintain the reliability of the IESO-controlled grid. The IESO signed a reliability must run (RMR) contract for the Lennox Generating Station in August 2006 on the grounds that Ontario Power Generation's request to remove Lennox would likely have an unacceptable impact on reliability.
The contract was approved by the Ontario Energy Board in January 2007. The RMR contract guarantees that OPG will recover the costs of running Lennox, while requiring OPG to keep the facility in-service and to continue to make it available to the Ontario electricity market. The contract came into effect as of October 1, 2006.
The approximate settlement value for the first three months of the contract covering the period October 1, 2006 - December 31, 2006 is $15.4 million. As the adjustment is in excess of $3.5 million, the adjustment will be processed based on costs and AQEW for each of the individual months.
The charges will appear on your January 31 preliminary settlement statements as:
-Three monthly manual line entries for the contract costs incurred for each month during the period October 2006 - December 2006.
-A single detailed record entry for the contract costs charged in January 2007.
For more information, please contact Customer Relations at: