More Efficient Uniform Price (SE-79)

Recent discussions with stakeholders regarding day-ahead market design issues have highlighted the difficulties of evolving the electricity market under the current two schedule system: (i) the physical scheduling of resources (the constrained algorithm) and; (ii) the market schedule used as the basis for establishing financial compensation (the unconstrained algorithm). The Market Surveillance Panel (MSP) has also identified several issues relating to the inefficient incentives caused by the two schedule system.

The IESO has committed to working with participants and the Stakeholder Advisory Committee (SAC) members to review the current real-time uniform pricing model.

The IESO will be drafting and publishing a discussion paper to define the problem statement – what are the undesirable outcomes caused from having a two-schedule system. This paper will then be submitted to the SAC and IESO Senior Management to assist in determining the appropriate stakeholder venue for analysis and the development of recommendations.

Proposed Activities

Date Agenda/Minutes	Supporting Material	Expected Actions
To be Determined	Advisory Committee to provide comments on: 1. The Discussion Paper and; 2. The appropriate stakeholder venue for analysis and the development of recommendations	Direction from SAC required
June 2, 2009	Update on initiative provided at June 2 Dispatchable Load Working Group meeting
April 7, 2009	Presentation to Market Pricing Working Group on More Efficient Uniform Price	Dialogue – Stakeholder Input
March 6, 2009	Deadline for Market Pricing Working Group stakeholders to provide written feedback • APPrO • Ontario Power Generation	IESO to post feedback from Market Pricing Working Group stakeholders
February 19, 2009	Memo sent to Market Pricing Working Group on More Efficient Uniform Price Study	IESO to gather feedback from Market Pricing Working Group stakeholders
February 4, 2009	Presentation to Advisory Committee on More Efficient Uniform Price	Dialogue - stakeholder input
February 3, 2009	Presentation to Market Pricing Working Group on More Efficient Uniform Price	Dialogue - stakeholder input