Ontario Energy Board

EB-2007-0040

IN THE MATTER OF the Electricity Act, 1998, S.O.1998, c.15 (Schedule B);

AND IN THE MATTER OF an Application by the Association of Major Power Consumers in Ontario under section 33 of the Electricity Act, 1998 for an Order revoking an amendment to the market rules and referring the amendment back to the Independent Electricity System

Operator for further consideration and for an Order staying the operation of the amendment to the market rules pending completion of the Board’s review.

BEFORE:

Gordon Kaiser, Vice Chair and Presiding Member

Pamela Nowina, Vice Chair

Bill Rupert, Member

ORDER

On February 9, 2007, the Association of Major Power Consumers in Ontario (“AMPCO”) filed with the Ontario Energy Board (the “Board”) an application under section 33(4) of the Electricity Act, 1998 seeking the review of an amendment to the market rules made by the Independent Electricity System Operator on January 18, 2007. The Board has assigned the application Board file number EB-2007-0040.

The amendment that is the subject-matter of AMPCO’s application is identified as MR-00331-R00: “Specify the Ramping Capability in the Market Schedule” and relates to the ramp rate assumption used in the market dispatch algorithm within the IESO-administered markets (the “Amendment”).

The Amendment has an effective date of February 10, 2007. AMPCO has also applied for an order under section 33(7) of the Electricity Act, 1998 staying the operation of the Amendment pending completion of the Board’s review of the Amendment. AMPCO’s arguments in that regard are as follows:

i.              It is in the public interest to order the stay. The Amendment will have a significant impact on electricity consumers, who will immediately face considerable electricity cost increases for no discernable benefits.

ii.             There are legitimate concerns with respect to the Amendment that should be considered by the Board.

iii.            The balance of convenience favours a stay:

a.    the existing ramp rate multiplier has been in place since market opening in 2002, and there is no urgency to implementation of the Amendment, whereas the impact of the Amendment on consumers is substantial;

b.    adjusting the ramp rate now with the possibility that the Amendment will be reversed later will lead to customer confusion and possibly the need to reverse charges to load customers and payments to generators with the attendant administrative costs for those adjustments; and

c.     the Board is required to make a final decision in this proceeding within 60 days.

On February 9, 2007, the Independent Electricity System Operator (“IESO”) filed a letter with the Board indicated that it consents to the stay of the operation of the Amendment, such consent being without prejudice to any arguments that the IESO may make in relation to the Board’s review of the Amendment. In consenting to the stay, the IESO noted that it has given due consideration to the balance of convenience and the short duration of the stay given the Board’s statutory deadline for issuing an order embodying its final decision in relation to the review of the Amendment.

The Board has considered the matters identified in section 33(8) of the Electricity Act, 1998 and AMPCO’s submissions in that regard. The Board is satisfied that the operation of the Amendment should be stayed pending completion of the Board’s review of the Amendment. In particular, the Board agrees that the balance of convenience is in favour of staying the operation of the Amendment, particularly given the long history of the ramp rate issue in the IESO-administered markets.

THE BOARD ORDERS THAT:

The operation of the amendment to the market rules entitled MR-00331-R00: “Specify the Ramping Capability in the Market Schedule”, made by the Board of Directors of the Independent Electricity System Operator on January 18, 2007 and scheduled to come into effect on February 10, 2007, is hereby stayed pending completion of the Board’s review of the amendment and issuance by the Board of its order embodying its final decision on AMPCO’s application for review of the amendment.

DATED at Toronto, February 9, 2007.

ONTARIO ENERGY BOARD

Original signed by

Kirsten Walli

Board Secretary