There are many electricity generators in Ontario, including Ontario Power Generation (OPG) and independent power producers. These generators are paid for their electricity in a number of different ways:
Most generators in Ontario have contracts with the OPA or the Ontario Electricity Financial Corporation (OEFC). These contracts guarantee a set payment to the generator. The revenues of these generators are paid through the wholesale market and the difference between the wholesale price and the guaranteed payment set in their contracts is settled through the global adjustment.
OPG’s production from nuclear and large hydroelectric plants is regulated by the Ontario Energy Board, and OPG is paid a regulated rate for this power. The revenues of these generators are paid through the wholesale market and the difference between the wholesale price and the regulated rate as set by the Ontario Energy Board is settled through the global adjustment.
Some generators in Ontario are paid the wholesale – or market – price of electricity. Generators offer into a real-time, wholesale market operated by the Independent Electricity System Operator (IESO). Based on a bidding process, the IESO sets the wholesale price every five minutes. Find more information about the wholesale price set by the IESO.