What is MPM?
The IESO recently released the much anticipated Market Power
Mitigation ("MPM") detailed design
document for its Market Renewal Program. Market power mitigation is
a common feature found in most other North American competitive
electricity markets. It is intended to curb potential or actual
market power that certain electricity suppliers could wield given
their location on the transmission grid. Specifically, suppliers
could exercise market power where there is congestion on the
transmission line or intertie in the geographical area that the
participant supplies electricity.
Who does MPM apply to?
MPM is intended to apply to suppliers that participate in either
the IESO-administered energy market or the IESO-administered
operating reserve market, or both. MPM is not intended to apply to
non-dispatchable loads or price-responsive loads, i.e.
non-dispatchable loads that elect in the renewed market to
participate as price-responsive loads. 1
