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ARTICLE · 07 JUNE 2024

Creation Of A Distribution System Operator Model For Ontario LDCs: Opportunities, Challenges And Next Steps

Aird & Berlis LLP
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Ontario's electricity system is changing significantly, with local distribution companies ("LDCs") at the forefront. For the first time in decades, Ontario expects substantial load growth...

CanadaEnergy and Natural Resources
Ron Clark
Ron Clark
Cathy Jares
Cathy Jares
Sarah Simmons
Sarah Simmons
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By: Ron W. Clark, Cathy Jares and Sarah Simmons1

Introduction

Ontario's electricity system is changing significantly, with local distribution companies ("LDCs") at the forefront. For the first time in decades, Ontario expects substantial load growth due to electrification and economic development. As the Independent Electricity System Operator ("IESO") secures new bulk system supply resources, LDCs are planning for the impact of a low-carbon economy on their distribution systems. LDCs maintain the distribution system and provide delivery services, however, the increased connection of distributed energy resources ("DERs") like solar, storage and flexible loads (including EV charging) presents new challenges and opportunities. Overall, it is expected that the provision of distribution services in the future will become increasingly complex due to the need to manage two-way flows of electricity on the grid and the need to coordinate with customers and

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