The Ontario government recently issued an Order in Council approving the issuance
of a directive to the Independent Electricity System Operator
(IESO) with a view to "identifying viable opportunities to
lower electricity prices for Ontario consumers while maintaining
system reliability."
The Minister's Directive directs the IESO to retain an
independent third party to undertake a targeted review of existing
generation contracts in the province. The stated objective of the
review is to "identify opportunities to lower electricity
costs within such generation contracts."
The Directive states that the review is to focus on large gas,
wind and solar contracts that expire in the next 10 years but also
requires the IESO to focus on any other areas with the potential
for cost savings. The review is also to take into account system
reliability and potential impacts on Indigenous, municipal and
local partnerships.
