Continuance of the OPA's Demand Response Program Under IESO Management

On Monday March 31, 2014, the Minister of Energy issued 5 new Directives to the OPA.
One of which directly impacts Rodan Energy and our DR3 program.

” We were well aware of this Directive and believe that it is a step in the right direction,” said Rodan President, Paul Grod.

In Achieving Balance: Ontario’s Long-Term Energy Plan (L ТЕР 201 3), released on December 2, 2013 Ontario committed to using demand response (DR) to meet 10% of peak demand by 2025. To encourage development of DR in Ontario, L ТЕР 2013 also signaled that responsibility for existing DR initiatives and introduction of new DR initiatives will be transferred from the ОРА to the lndependent Electricity System Operator (IESO).

The IESO has proposed а plan to transition the OPA’s existing DR3 procurement program contracts to an IESO DR transitional market. Under this plan, the IESO will be in а position to transition all DR3 contracts between the ОРА and any aggregator or DR load to the IESO administered market and transitional market rules beginning in the first quarter of 2015.

Therefore, pursuant to my authority as the Minister of Energy, under section 25.32 of the Act, 1 hereby direct the ОРА as follows in order to facilitate an orderly transition of DR to the IESO administered market:

1. Any DR capacity (MW) that remains un-contracted under the direction dated June 15, 2005, titled “Immediate Launch of Procurement Processes to address needs in Downtown Toronto, Western Greater Toronto Area, and to develop additional Demand Management, Demand Response and High Efficiency Combined Heat and Power Supply”, as amended by the direction issued on February 9, 2006 shall not be contracted by the ОРА and the associated ОРА procurement authority is cancelled.

2. The ОРA shall not execute any new or renewed DR2 contracts.

3. Where the ОРA renews а DR3 contract set to mature before March 31, 2015, the term of the renewed contract shall be no later than March 31, 2015.

4. The ОРA shall not execute any renewed DR3 contract after March 31, 2015.

5. The ОРA shall consider allowing DR3 contract holders, with contracts maturing оn/or after March 31, 2015, to terminate their contracts, without applying an early termination payment, for the purposes of transitioning the DR load to the IESO administered market and transitional market rules.

6. The ОРA’s procurement authority for DR after the maturity or termination of а DR2 ог DR3 contract shall decrease by the capacity of the maturing or terminated contract.

7. This direction supplements and amends previous directions to the extent that а previous direction is inconsistent with the provisions of this direction. All other terms of any previous direction remain in full force and effect.

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