Participant News

Based on the IESO's annual review performed on April 11, 2008, there are no changes to the following IESO established price basis used in determining the prudential support obligations for market participants:
-  For metered market participants that are distributors = $53/MWh
-  For metered market participants other than distributors = $57.04/MWh

Date of next annual review: April 2009

Background:
For prudential calculation purposes, the IESO is required to calculate a metered market participant's minimum trading limit and default protection amount using energy prices based on the Ontario Energy Board's (OEB) price forecasts for electricity in Ontario for use in setting retail prices under its regulated price plan (RPP).  The price basis for Local Distribution Companies will be equal to the conventional meter RPP tier 1 price (RPCMT1) as reported by the OEB for its tiered RPP prices.  The price basis for all other market participants will be equal to the average RPP supply cost as forecasted by the OEB.  The IESO shall annually review each price basis referred to in Chapter 2, section 5.3.10A of the market rules, and shall modify the applicable price basis if it has increased or decreased by 15% or more from the price basis used by the IESO.
For more information on prudentials, please review Market Manual 5.4 Prudential Support, and the SE-23 Prudential Review stakeholder page at the IESO's website at:
http://www.ieso.ca/imoweb/pubs/settlements/se_PrudentialSupport.pdf
http://www.ieso.ca/imoweb/consult/consult_se23.asp

The following document outlines the price used by the IESO for prudential calculation purposes:
http://www.ieso.ca/imoweb/pubs/settlements/IESO_GDE_0228.pdf .