Ontario Regulation 424/04 (Integrated Power System Plan), made under the Electricity Act, 1998, sets out specific requirements, including relevant timing, for the Ontario Power Authority (OPA) to follow in developing the Integrated Power System Plan (IPSP) for Ontario. In developing the IPSP, the OPA must also adhere to the Supply Mix Directive.
On February 17, 2011, the Ministry of Energy proposed changes to O. Reg. 424/04. The proposal noted that:
Sections 2(1)4 and 5 of the regulation were intended to facilitate and encourage a market-based response to meet the electricity needs of the province. However, since these requirements were first developed, it became apparent that price signals in the marketplace alone would be insufficient to encourage generators to invest in the province at sufficient levels and that strategic procurement by the OPA as directed by the Minister of Energy would be necessary.
1. Paragraphs 4 and 5 of subsection 2 (1) of Ontario Regulation 424/04 are revoked and the following substituted:
4. Identify and develop innovative strategies to encourage and facilitate cost-effective measures for meeting overall system needs.
5. Consider competitive options when identifying and developing the strategies referred to in paragraph 4.
2. This Regulation comes into force on the later of July 1, 2011 and the day it is filed.