OEB Issues Decision on Application to Review Market Rule Amendment



    TORONTO, April 10 /CNW/ - Today the Ontario Energy Board (the Board)
issued a decision with reasons denying the application by the Association of
Major Power Consumers in Ontario for an Order revoking a market rule amendment
and referring it back to the Independent Electricity System Operator (IESO)
for further review.
    The amendment changes how the IESO calculates the price for energy in the
IESO-administered wholesale electricity market. The new rule reduces the ramp
rate multiplier in the pricing calculation from 12 times to 3 times. The ramp
rate is an assumption of how quickly the output of a generation facility can
be increased or decreased.
    The Board found that the amendment meets the criteria set out in the
Electricity Act, 1998. In concluding that the amendment is consistent with the
purposes of that Act and does not unjustly discriminate against or in favour
of a market participant or class of market participants, the Board noted the
following:

    
    -   the amendment is expected to improve efficiency in the wholesale
        electricity market;

    -   the anticipated benefits include reducing inefficient exports to
        New York, which in turn can reduce the need for coal-fired generation
        in the province, as well as encouraging conservation, load management
        and demand side management; and,

    -   the IESO estimates the impact on consumers' bills is likely to be
        relatively modest, in the order of 0.004 cents per kilowatt hour
        based on 2006 market prices. The IESO also provided evidence that,
        based on less conservative assumptions, the impact on consumers'
        bills could be a net reduction.
    

    This is the first application of its kind to proceed to a hearing before
and decision by the Board.

    The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a viable and efficient energy
sector with informed consumers served by responsive regulatory processes that
are effective, fair and transparent.
    For more information please visit the OEB website at www.oeb.gov.on.ca.





For further information:

For further information: Vanda Wall, Ontario Energy Board, (416)
440-8149


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