IESO 2009 ONTARIO RELIABILITY OUTLOOK: Transmission, Integration and Customer
Engagement Key in the Shift to a Cleaner, More Renewable Electricity Supply
Mix

TORONTO , Dec. 21 /CNW/ - The influx of new wind and other renewable generation is being enabled by steps behind the scenes to ensure the reliable operation of Ontario's electricity system into the future. In its most recent Ontario Reliability Outlook, the Independent Electricity System Operator (IESO) highlights the progress made in creating a cleaner, more sustainable electricity system, and the challenges ahead to manage a new, more variable supply mix.

"Ontario's electricity system is transforming - it's becoming more variable, diverse and participatory, with consumers poised to take an increasingly active role in their energy use decisions," said Paul Murphy , IESO President and CEO. "These changes will have a profound impact on the way the province's electricity system will be managed and are requiring the industry to rethink how it provides a reliable electric service."

The 2009 Ontario Reliability Outlook comes on the heels of the announcement by the Ontario Power Authority about the first wave of applications to its Feed-in Tariff (FIT) program. The positive response to the FIT program will accelerate the shift within Ontario's supply mix from larger and flexible power generation to smaller, more numerous renewable sources of energy production. The Outlook examines four areas key to the renewal of Ontario's electricity sector.

    
    -   Transmission: Timely and appropriate approval processes are needed to
        ensure that transmission capabilities are ready in time when new
        renewable generation comes on line.
    -   Integration: As FIT projects come into service, Ontario's current
        fleet of 1,200 MW in wind capacity will expand significantly. The
        IESO is continuing its work with partners to maximize the flexibility
        of all resources to address the increased variability within the
        supply mix.
    -   The Consumer: Demand response represents a flexible resource that can
        have a much greater influence in maintaining system reliability.
    -   Resource Adequacy: While new resources are contributing to a positive
        reliability outlook over the next five years, meeting adequacy
        requirements beyond 2014 is less certain.
    

"Much has been achieved over the last few years: the phase-out of coal generation is on track; the province's gas generation fleet is maturing; more than three million smart meters have been installed across the province; and Ontario leads the country in wind generation," said Murphy. "This is just the start - these changes set the stage for innovative approaches to the production, consumption and management of the province's electricity supply."

The Ontario Reliability Outlook reports on progress of the interrelated generation, transmission and demand projects underway to meet future reliability requirements. The December 2009 report is available for download at: www.ieso.ca/reliability.outlook.

The IESO is responsible for managing Ontario's bulk electricity system and operating the wholesale electricity market. For more information, visit www.ieso.ca.

For further information: Alexandra Campbell, [phone]