challenges and opportunities in ontario’s electricity sector cross-border forum on energy issues
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Challenges and Opportunities in Ontario’s Electricity Sector Cross-Border Forum on Energy Issues March 2, 2006 – Washington, D.C. Rick Jennings Assistant Deputy Minister (A), Office of Energy Supply Ontario Ministry of Energy, Toronto. Energy Jurisdiction in Canada. Provinces : - PowerPoint PPT PresentationTRANSCRIPT
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Challenges and Opportunities in Ontario’s Electricity Sector
Cross-Border Forum on Energy Issues
March 2, 2006 – Washington, D.C.
Rick Jennings
Assistant Deputy Minister (A), Office of Energy Supply
Ontario Ministry of Energy, Toronto
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Energy Jurisdiction in Canada
Provinces:
Main energy jurisdiction, including intra-provincial electricity market, generation, transmission and distribution.
Federal Government:
Inter-provincial and international energy matters, inc. transboundary transmission and generation.
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Areas of Federal/Provincial Cooperation
Canada/U.S. Bilateral Electricity Reliability Oversight Group:
- New ERO (2005 FERC NPR)- Joint NERC/Canada and NERC/Provinces
reliability MOU’s
East-West Canadian Transmission Grid
Regulatory Reform: Advance New Supply
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Canada’s Electricity Supply Balance
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Ontario’s Electricity Supply Balance
SASK•Wholesale open
access •Functional separation
AB•Mandatory Power Pool•Wholesale & retail open
access since 2001•Regulated retail rates until
July 2006•Functional separation with
ISO•Voluntary divesture (one
ITC) •Independent Market
Surveillance Administrator
MAN•Wholesale open
access•Functional separation•Coordinating member
of MISO RTO
ON•Industry unbundling in 1998
•Wholesale & retail open access since 2002
•Changes in resource planning, pricing & acquisition in 2005 including creation of Ontario
Power Authority (OPA)
QUE•Wholesale open access •Functional separation•Wholesale competition for domestic load >165 Twh
NLEnergy policies
under review
NB•Wholesale & large
industrial open access•Bilateral market open
and creation of independent NB System
Operator in 2004
NS•Wholesale open access•Functional Separation
PEIDistribution
Networkonly
BC•Wholesale access with industrial open access
applied for and expected later in 2005
•Independent Xmssn entity
Status of Canadian Market Restructuring: June 2005
Source: Canadian Electricity Association
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Electricity Restructuring: New Institutional Structure
CompetitiveGenerators
LargeConsumers
SmallConsumers
Fixed-PriceGenerators(e.g., OPG
Nuclear and Baseload Hydro)
IndependentElectricity
System Operator
(IESO)
RegulatedPricePlan
Ministry of Energy• Overall policy/legislative framework• Sets targets for technology,
conservation, renewables.
Ontario Energy Board• Guarantees public input/fairness• Approves prices for price
regulated generators; oversees contracts for new supply
Ontario Power Authority• Prepares integrated system • Contracts for new supply and DSM• Manages regulated price plan• Conservation Bureau
EnergyRetailers
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Ontario Generation Mix (2005)
Nuclear: 36.8%
Hydro: 25.8%
Coal: 21.4%
Oil/Gas: 16.5%Misc.: 0.2%
www.ieso.ca/imoweb/pubs/media/10yearOutlook-highlights-2005jul.pdf
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Ontario Electricity Prices
0
20
40
60
80
100
120
140
5/1/
2002
7/1/
2002
9/1/
2002
11/1
/200
2
1/1/
2003
3/1/
2003
5/1/
2003
7/1/
2003
9/1/
2003
11/1
/200
3
1/1/
2004
3/1/
2004
5/1/
2004
7/1/
2004
9/1/
2004
11/1
/200
4
1/1/
2005
3/1/
2005
5/1/
2005
7/1/
2005
9/1/
2005
11/1
/200
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1/1/
2006
Market Open to Jan. 31, 2006 Simple Average HOEP
$56.46/MWh
Weekly Simple Average HOEP
2004 Simple Average HOEP$49.95/MWh
2006 YTD Simple Average HOEP
$54.35/MWh
2005 Simple Average HOEP$68.49/MWh
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Coal Replacement Scenario
http://www.ieso.ca/imoweb/pubs/media/10yearOutlook-highlights-2005jul.pdf
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New Energy Supply Initiatives
Renewables RFPs 1,600 MWClean Energy/DSM RFPs 1,955 MWOPA procurement 3,770 MWNiagara Tunnel ~200 MWThunder Bay conversion 310 MWNuclear refurbishment 2,055 MWManitoba CTI 400 MW
Total ~10,290 MW
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Potential Intertie Expansions
New York
Manitoba(+ up to 1500 MW)
Quebec (+1250 MW)
Michigan(+ 500 MW)
Minnesota
PJM (+ upto 975 MW)
Niagara(+ 800 MW)
Source: Hydro One
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Ontario’s Future Electricity Supply Mix
Ontario Power Authority Electricity Supply MixAdvice Report to government, Dec./05:
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Ontario’s Future Electricity Supply Mix (cont’d)
Public consultations in Ontario communities, etc., Feb./06 on.
OPA to finalize demand and transmission forecast, supply mix/CDM options, and transmission requirements by May/06.
OPA to prepare Integrated Power System Plan and submit to Ontario Energy Board by Aug./06.
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Ontario’s Future Challenges
Growth and supply gap.
Urgent need for conservation, new supply and transmission, particularly in Greater Toronto Area.
Needs of Northern and remote communities.
Public opposition to new infrastructure projects.
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Further Information/Questions:
Rick JenningsA/Assistant Deputy MinisterOffice of Energy SupplyOntario Ministry of Energy, [email protected]
Ontario Power Authoritywww.powerauthority.on.ca
Independent Electricity System Operatorwww.ieso.ca
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