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Market Power Mitigation Rebate Assignment. Presentation to CRTAP June 25, 2002. Background. Recipient (Assignor) has assigned Rebate to 3rd party (Assignee) Applicable to wholesale and retail markets Assignment law (late-19th century) Licences recognize possibility
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Market Power Mitigation RebateAssignment Presentation to CRTAP June 25, 2002
Background • Recipient (Assignor) has assigned Rebate to 3rd party (Assignee) • Applicable to wholesale and retail markets • Assignment law (late-19th century) • Licences recognize possibility - “Nothing shall preclude…..” • Valid and not unduly burdensome
Wholesale/Retail Consistency • Consistency important • OEB/MEE/IMO working group • Outline proposals endorsed by MOSC/EMMC • OEB & IMO seeking input • CRTAP is IMO’s first step
Principles • Not mandatory for Assignors/Assignees • Built on current MPMA processes • Flexible (e.g. multiple 3rd parties, residual) • Proof of assignment • Payment via market systems • Assignment $ based on assigned kWh • Subject to NOD/dispute processes
Process - Preparation • Settlement period minus 2 months - reminder that Assignees must be MPs - Web site announcement? • Settlement period plus 20 BD - IMO provides total AQEW for period to MP - Letter or E-mail?
Process - Notification • Up to 15 CD later - Assignee submits to IMO assigned kWh & Assignor’s authorization - IMO rejects invalid assignment(s) • Up to 10 CD later - Assignee submits revision to rejected submissions; last opportunity
Process - Calculation • On receipt of OPG Rebate payment - IMO calculates MP’s Rebate - IMO calculates Assignee’s payment based on MP’s Rebate $, MP’s AQEW and assigned kWh • PSS, FSS & invoice dates - MPMA Rebates included
MPMA Rebate Schedule • Up to 15 CD after FSS for last trade-day of Settlement Period - IMO informs OPG of Rebate • Up to 30 CD later - If agree with IMO calcs., OPG pays • If no agreement, OPG payment delayed by 60 CD or longer
Validation • Assignee is an MP • Assignor agrees to assignment • Submission format correct • Assigned kWh < or = AQEW - One assignment; reject it - Multiple assignments; reject all • MPMA $ “neutrality”