Emergency Demand Response Program (EDRP)

1. Emergency Demand Response Program(EDRP) IMO Settlements

2. EDRP - Definition This ancillary service involves load facilities that are willing to reduce their load consumption on short notice to enable the IMO to maintain the reliability of the IMO-controlled grid.

3. EDRP - Why & When implement the plan? • Forecast identifies periods with tight reserve levels. • Limited amount of dispatchable loads to provide relief. • Limit possible load curtailment to non-dispatchable loads. • High prices during shortages may not mitigate demand levels. • Implementation targeted for Summer 2002.

4. EDRP Design Principles • Available to all MPs. • To avoid involuntary curtailment of non-dispactable load. • It is not an economic measure to mitigate price. • It will not displace commercial sources of operating reserve. • The program is temporary with a one-year sunset clause. • Payments should not discourage dispatchable load. • Used by the IMO during an emergency operating state.

5. EDRP Design Principles • Program to be: • Fair • Practical • Operable during an emergency • Participation determined by: • Time to implement • Size of load • Electrical location

6. EDRP Fundamentals • Participants sign Ancillary Service Provider (ASP) contracts. • Used after all commercial sources of OR has been used. • EDRP activated post 5% voltage cuts. • 30 minute or greater advance notice given to ASP. • IMO Control Room requests participating ASP to reduce load. • Measurement interval for reduction is 2.5 hours. • ASP expected to reduce load ASAP. • ASP may restore load without IMO permission.

7. EDRP Implementation • The IMO sought input from MPs and other stakeholders regarding development & implementation of the EDRP. • Final form will depend on response to the program. • Two groups based on geography • Provincial • Provincial minus Northwest • Pre-recorded message sent to ASPs • Start time • Duration • Phone number to confirm participation

8. EDRP Compensation • The average demand over a 60 minute period preceding the EDRP cut order will establish the baseline from which the demand is reduced. • The time period for evaluation of reduction in demand after the cut order includes an initial 30 minutes during which demand is being reduced and a further 2 hour period. • No availability payment is made to ASP. • No penalty for non-compliance. Payment is decreased commensurate to the load reduction. • ASP to be compensated for additional costs incurred. • Payments are made on a monthly basis.

9. EDRP Contract Negotiations • As of June 5, 2002 • 1400 MWs of potential load reduction participants contacted. • As of June 11, 2002 • No agreements have been entered into.