Contact Us | CareersSite Map   
Business & Industry Information Centre Inside the Market Media Desk
PARTICIPANT TOOLBOX IESO REPORTS PORTAL TECHNICAL INTERFACES RULES & MANUALS WORKFLOW
     
Expand All [+]
Collapse All [–]
Home About The IESO Market Data News and Calendars Markets and Programs Services The Power Grid Stakeholder Initiatives Documents Market Oversight

Sanctions

Market participants who breach market rules may be subject to sanctions if the IESO considers it appropriate. Sanctions cover a range of possible actions, from a simple non-compliance sanction letter to financial penalties or termination from the market, depending on the nature of the breach.

Below is a list of market participants against whom sanctions have been applied within the last twelve months:

  1. Hydro One Networks Inc.: In the period from January 2004 to February 2010, Hydro One was found in breach of Chapter 4, section 7.7.3 (subsections 7.7.3.1 and 7.7.3.2) of the Market Rules for the Ontario Electricity Market ("the Market Rules"). Hydro One failed to restore the operational status and analog telemetering points to a fully operational state within time frames required by the Market Rules. No financial penalty was assessed for the breach for several reasons, primarily because of the limited actual and potential impact on reliability and the market; process improvements for communicating failed telemetry events; and completed repairs of the concerned operational status and analog telemetering points.
  2. Hydro One Networks Inc. ("Hydro One"): In the period from 2005 to 2008, Hydro One failed to sufficiently complete the testing of critical components for its key facilities in accordance with the Northeast Power Coordinating Council criteria and the market rules. The test failure rates for testing critical components associated with key facilities varied between 1.5% and 29%. Hydro One was issued a suspended order to pay a financial penalty of $90,000 for the four years of non-compliance, taking into account that Hydro One became fully compliant before the conclusion of the investigation. During the course of these investigations, MACD and Hydro One discussed the benefits of Hydro One improving its compliance with reliability standards and the market rules through enhancements to Hydro One's Internal Compliance Program, and Hydro One voluntarily committed to doing so.
    MACD encourages the development and implementation of comprehensive and effective internal compliance programs by all market participants and views these programs as paramount to the reliability of Ontario's interconnected power system through creating greater awareness of detection and prevention methods, and ensuring potential or actual breaches of reliability obligations are prevented or detected and corrected through the use of internal controls. Given the importance of Hydro One's role and function as a key owner and operator of transmission systems in Ontario, MACD and Hydro One have jointly developed criteria and measures designed to enhance the quality of Hydro One's Internal Compliance Program.
    In order to allow Hydro One time to develop and implement its Internal Compliance Program in accordance with all of the measures, payment of the financial penalty will be suspended until April 30, 2014. If Hydro One improves its Internal Compliance Program in accordance with the measures to the satisfaction of MACD, the order to pay the financial penalty shall be reduced by an amount that corresponds to the number of implemented measures. If all measures are met, the order to pay a financial penalty will be revoked entirely.
  3. Independent Electricity System Operator: On December 17, 2010 the IESO reached a settlement agreement with the Market Assessment and Compliance Division ("MACD"), in relation to a MACD finding that the IESO violated North American Electric Reliability Corporation reliability standards and associated Northeast Power Coordinating Council criteria, and thereby breached the market rules. The agreement stipulated that the IESO agreed to pay a penalty in the amount of $130,000, with $100,000 to be suspended pending MACD's evaluation of agreed improvements to the IESO's internal compliance program. MACD judged that those improvements would be of more value to the shared goal of reliability than a financial penalty, in this circumstance. That evaluation is now complete and the IESO has made the requisite improvements to its compliance program. The corresponding component of the penalty is now removed.
  4. GenSet Resource Management Inc.: In June 2013, GenSet Resource Management Inc. was sanctioned $13,500 for failure to comply with dispatch instructions for operating reserve activation on nine (9) separate occasions. These breaches were in relation to GenSet's Kingsville and Lauzon generation facilities. The breaches occurred between July 2010 and June 2011.
  5. Greenfield Energy Centre LP: In May 2013, Greenfield Energy Centre LP was sanctioned $19,000 for failure to comply with dispatch instructions for operating reserve activation on three (3) separate occasions. These breaches were in relation to Greenfield Energy Centre LP's Greenfield Energy Centre CGS facility (G1 to G4). The breaches occurred between July 2010 and June 2011.
  6. TransAlta Cogeneration LP: In January 2013, TransAlta Cogeneration LP was sanctioned $24,000 for failure to comply with dispatch instructions for operating reserve activation on six separate occasions. These breaches were in relation to TransAlta Cogeneration LP's Windsor facility. The breaches occurred between July 2010 and June 2011. TransAlta Cogeneration LP has also been ordered to provide evidence of the implementation and efficacy of certain mitigation measures by May 1, 2013.
  7. PowerStream Inc.: In October, 2012, a letter of non-compliance was issued to PowerStream Inc. for failure to upgrade two metering installations. The breaches commenced in January 2010 and continued through to September 2011.
  8. TransAlta Generation Partnership: In September 2012, TransAlta Generation Partnership was sanctioned a total of $15,000 for failure to comply with dispatch instructions for operating reserve activations. The breaches were in relation to the Sarnia generating facility. The breaches occurred between July 2010 and June 2011.
  9. TransAlta Generation Partnership: In August, 2012, TransAlta Generation Partnership was sanctioned $31,000 for failure to comply with various NERC Critical Infrastructure Protection reliability standards. The breaches occurred between January 2010 and November 2010 and related to the failure to implement processes and have the required documentation necessary for a Critical Infrastructure Protection Program.
  10. Atomic Energy of Canada Limited: In July, 2012, Atomic Energy of Canada Limited was sanctioned $12,000 for failure to upgrade six metering installations. The breaches commenced in January 2008 and are ongoing. AECL has been ordered to bring the metering installations into compliance with the market rules on or before September 30, 2012. AECL has been further ordered to provide a status update on the upgrades to MACD by September 1, 2012 and confirmation of completion of the upgrades by October 15, 2012.
  11. Hydro One Brampton Networks Inc: In July, 2012, a letter of non-compliance was issued to Hydro One Brampton Networks Inc. for failure to upgrade two metering installations. The breaches commenced in January 2009 and continued through to September 2011.
  12. Hydro One Networks Inc.: In July, 2012, Hydro One Networks Inc. was sanctioned $6,000 for failure to upgrade one metering installation and issued a letter of non-compliance for failure to upgrade another metering installation. The breaches commenced in January 2008 and continued through to November 2009 and November 2010, respectively.
  13. London Hydro Inc.: In July, 2012, London Hydro Inc. was sanctioned $12,000 for failure to upgrade two metering installations. The breaches commenced in January 2009 and continued through to May 2011 and June 2011, respectively.
  14. Niagara Peninsula Energy Inc.: In July, 2012, Niagara Peninsula Energy Inc. was sanctioned $6,000 for failure to upgrade a metering installation. The breach commenced in January 2009 and is ongoing. Niagara Peninsula Energy Inc. has been ordered to bring the metering installation into compliance with the market rules on or before December 31, 2013. Niagara Peninsula Energy Inc. has been further ordered to provide status updates to MACD on or before December 31, 2012 and June 30, 2013, and confirmation of completion of the upgrades by December 31, 2013.
  15. Norfolk Power Distribution Inc.: In July, 2012, Norfolk Power Distribution Inc. was sanctioned $7,000 for failure to upgrade two metering installations, and for failure to ensure that each meter has been tested or verified for accuracy and sealed or re-sealed in accordance with all federal metering requirements. The breaches commenced in January 2008 and are ongoing. Norfolk Power Distribution Inc. has been ordered to bring the metering installations into compliance with the market rules on or before October 31, 2012. Norfolk Power Distribution Inc. has been further ordered to provide a status update to MACD on or before October 1, 2012 and with confirmation of completion of the upgrades by November 15, 2012.
  16. PowerStream Inc.: In July, 2012, a letter of non-compliance was issued to PowerStream Inc. for failure to upgrade three metering installations. The breaches commenced in January 2008 and January 2009 and continued through to April 2010 and December 2011, respectively.
  17. Red Rock Mill Inc.: In July, 2012, Red Rock Mill Inc. was sanctioned $3,000 for failure to upgrade a metering installation. The breach commenced in January 2008 and is ongoing. Red Rock Mill Inc. has been ordered to bring the metering installation into compliance with the market rules on or before December 31, 2013. Red Rock Mill Inc. has been further ordered to provide status updates to MACD on or before December 31, 2012 and June 30, 2013 and confirmation of completion of the upgrades by December 31, 2013.
  18. Tembec Enterprises Inc.: In July, 2012, Tembec Enterprises Inc. was sanctioned $3,000 for failure to upgrade a metering installation. The breach commenced in January 2008 and continued through to September 2010.
  19. Canadian Hydro Developers Inc.: In March 2012, Canadian Hydro Developers Inc. was sanctioned $5,000 for failure to comply with an operational instruction received from the IESO for a reliability purpose. The breach was in relation to the Amaranth wind generating facility. In addition, Canadian Hydro Developers Inc. is required to provide MACD by August 31, 2012, with proof that the mitigation measures cited in Appendix A are in place and are having the desired effect. The breach occurred in May 2011.
  20. Suncor Energy Products Inc. - Ripley.: In March 2012, Suncor Energy Products Inc. - Ripley was sanctioned $3,000 for failure to comply with an operational instruction received from the IESO for a reliability purpose.  The breach was in relation to the Ripley wind generating facility. In addition, Suncor Energy Products Inc. - Ripley has also been ordered to provide sufficient evidence of the implementation and efficacy of certain mitigation measures to MACD by August 31st, 2012.  The breach occurred in April 2011.
  21. CP Renewable Energy (Kingsbridge) LP.: In March 2012, CP Renewable Energy (Kingsbridge) LP was sanctioned $3,500 for failure to promptly notify the IESO of a change in status to their facility and for failure to comply with an operational instruction received from the IESO for a reliability  purpose. The breach was in relation to the Kingsbridge wind generating facility. Kingsbridge has also been ordered to provide sufficient evidence of the implementation and efficacy of certain mitigation measures to MACD by August 31st 2012.  The breaches occurred in April and May of 2011.

Previous sanctions
 
Copyright © 2019 Independent Electricity System Operator