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DRAFT 1. Market Evolution Program Wholesale/Retail Integration Project. R.A.S.C. Meeting May 14, 2003. What is a “Wholesale/Retail Issue?”. No formal definition, but generally these issues all display four common characteristics:. 1) Both the wholesale and retail markets are affected;
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DRAFT 1 Market Evolution ProgramWholesale/Retail Integration Project R.A.S.C. Meeting May 14, 2003 1
What is a “Wholesale/Retail Issue?” • No formal definition, but generally these issues all display four common characteristics: 1) Both the wholesale and retail markets are affected; 2) It is in the long-term interest of both markets to resolve them 3) No single governing/regulatory authority has full rule-making powers or responsibility over the issue; and 4) They are generally complicated by the fact that they span the wholesale/retail market boundary - particularly in areas such as issue ownership, computer systems, business processes and financial risk management activities; 2
Wholesale/Retail Integration Issue Areas: 1) Financial issues across the market boundary 2) Opening the door to future demand response products that retail customers can participate in while providing a reliability benefit 3) Ensuring that the wholesale/retail market boundary keeps pace with emerging technologies such as retail-level metering and microgeneration Developments: • Wholesale/Retail Integration discussion paper soliciting stakeholder feedback to be released shortly • Upcoming Pilot Projects 3
Aspects of Wholesale/Retail Integration The Players The Rules Examples of Solutions/Processes that could be integrated • Wholesale Market Participants: • Distributors • Wholesale Buyers/Sellers • Retailers • Importers/Exporters • Generators • Wholesale Consumers • Wholesale Transmission Customers • Metering Service Providers • IMO Market Rules • IMO Licence Conditions • OEB Transmission Rate Orders • Bill 210 regulations • Other regulations (Debt Retirement Charge, Market Power Mitigation, etc.) • Prudential Risk Allocation • Wholesale Market Settlement • Wholesale Payment Timelines • Demand Response Programs • Retail Market Settlement • Retail Payment Timelines • Distributed Generation • Retail Interval Metering Wholesale Market The Wholesale/Retail Market Boundary • Distributors • Retailers • Retail Customers • Retail Generators • Retail Metering Service Providers • EBT Hub Providers • OEB Retail Settlement Code and Rate Handbook • Affiliate Relationships Code • Distributor and Retailer Licence Conditions • Bill 210 Regulations Retail Market 4
Wholesale/Retail Integration The Approach: • Avoid overlap with topics being addressed in existing stakeholder forums • Use of Pilot Projects to look ahead to future logistical challenges • Ensure that future solutions do not conflict with the evolving role of various market participants and retail entities • Ensure alignment with other MEP initiatives 5
Wholesale/Retail IntegrationRegulatory Issues Encountered so far Retail Interval Metering: • Current regulatory framework needs to be adapted in order to allow for a meaningful, Ontario-based pilot study. • Raises regulatory questions concerning cost-recovery, administration, and the role of the LDC in this area. 6
Wholesale/Retail IntegrationRegulatory Issues Encountered so far Load Aggregators: • Various pilot projects being considered - encompassing both “load response” and “price response”. • Final form of participation will need to fit with the IMO’s broader strategy concerning demand response • Regulatory issues centre around the relationships that would govern payment streams from the wholesale market to the aggregator and on to the ultimate consumer. • Many other ISO’s define the boundary of their relationship/jurisdiction down to the market participant level - not the final retail customer. 7