IESO

1
IESOs Stakeholder Planning

• Market Operations Standing Committee Meeting
• Wednesday, October 19, 2005

2
What is Stakeholder Engagement?

• A commitment by the IESO to initiate open,
  two-way dialogue with stakeholders individuals
  with an interest or concern about the IESOs
  business to both understand and develop
  solutions to problems in a way that benefits both
  stakeholders and the IESO.

3
Stakeholder Engagement Background

• Starting in early 2005, the IESO had undertaken
  an extensive review of our stakeholder engagement
  processes and procedures in response to changes
  arising from Bill 100 and feedback from
  stakeholders.
• The need for increased transparency, the need to
  communicate decisions with a rationale on how the
  stakeholder input was utilized or just as
  important not utilized and why, and the need
  for more balanced representation from all
  sectors, were just some of the issues.
• Review included an examination of stakeholder
  involvement objectives, principles, processes,
  procedures and mechanisms.
• The principles and frameworks were developed in
  large part from feedback provided by
  stakeholders.

4
Board Approval Principles, Committee and Unit

• 16 principles to guide IESO activities and
  conduct of IESO and stakeholders in process.
• Creation of a Stakeholder Advisory Committee to
  the Board and IESO Executive consisting of voting
  members reflective of stakeholder constituencies.
  
• Stakeholder Engagement Unit within the IESO to
  coordinate and support all stakeholder engagement
  processes and mechanisms across the company.
• Market Advisory Council and Regulatory Affairs
  Standing Committee disbanded

5
Stakeholder Engagement Principles

• Developed in large part from feedback provided by
  stakeholders
• Include
• Decision making process transparent and defined
• Stakeholder views communicated to decision makers
• Inclusive process
• Stakeholders represent their organizations views
  and commit to keep them informed
• Stakeholder processes are efficient and cost
  effective
• Regularly measure and assess the effectiveness

6
Stakeholder Advisory Committee

• Marketer/Broker
• Mr. Paul McMillan - Senior Vice President
  Ontario, EPCOR Utilities Inc.
• Mr. Matthew Picardi - General Manager of
  Regulatory Affairs, Coral Energy Canada Inc.
• Generation
• Mr. Bruce Boland - Senior Vice-President -
  Corporate Affairs, Ontario Power Generation Inc.
• Mr. Daniel Whyte - Vice-President - Regulatory
  Affairs, Brascan Energy Marketing Inc.
• Large industry Wholesale consumer market
  participant
• Mr. John LeMay - Energy Manager, Inco Limited
• Medium-to-small industry - Embedded consumers
• Mr. Mike Humphries - General Manager of Zochem,
  Division of Hudson's Bay Mining and Smelting
• Distribution
• Mr. Brian Bentz - President and CEO, PowerStream
  Inc.
• Mr. Don Thorne - President and CEO, Milton Hydro
  Distribution Inc.
• Commercial

7
Stakeholder Engagement Unit

• Recognizes the need to bring more consistent
  direction to the stakeholder engagement function
  across the IESO, and the importance of this
  function.
• Has the lead responsibility for ensuring that the
  objectives established for stakeholder engagement
  are met.
• The stakeholder engagement process will only be
  effective with a significant level of partnership
  between the IESO and the stakeholder community,
  and a commitment from both the IESO and
  stakeholders to meet the principles on which the
  proposal is based.
• We look forward to working with stakeholders to
  achieve a more effective stakeholder engagement
  process that addresses the needs of the market,
  stakeholders and the IESO.
• Reach us at stakeholder.engagement_at_ieso.ca

8
Current Stakeholder Plans seehttp//www.ieso.ca
/imoweb/consult/activeComplete.asp
9
Process for Market Operations Standing Committee

• Items discussed at MOSC that are for information
  or education will not involve a Stakeholder Plan.
  
• Issues requiring stakeholder input to IESO
  decisions will be assessed by the Stakeholder
  Engagement Unit and a Stakeholder Plan
  developed.
• Stakeholder Plan will identify the forum for
  engaging stakeholders (standing committee,
  working group, advisory committee, etc.)
• The Stakeholder Plan will identify the key
  decision dates consistent with the priority and
  workload of stakeholders and decision makers.
• Plan needs to address all 16 principles, who are
  the stakeholders, how will stakeholders input be
  used, transparency including any
  dissenting/different views.
• All views to be public and included in
  recommendations to IESO Executive, Advisory
  Committee or the Board.
• Regular reporting to Advisory Committee on all
  stakeholder activities.

10
Stakeholder Engagement Principles

• Stakeholder engagement is essential
• Meaningful opportunities to provide input
• Varying levels of stakeholder engagement
  available
• Decision making process transparent and defined
• Stakeholder views communicated to decision makers
• Decisions and rationale communicated including
  how input taken into account in the decision
• IESO endorses processes and communicates outcomes
• Inclusive process, opportunity for all with an
  interest to participate.
• Actively encourage all stakeholder sectors to
  participate no constituency to have undue
  influence
• Stakeholders commitment to keep host
  organization informed and have the authority and
  willingness to represent their organizations
  views
• Stakeholder processes are efficient and cost
  effective
• Stakeholder input used to develop options to
  facilitate resolution of differing points of view
• Timely, accessible and accurate information
  available to understand implications of
  alternatives
• IESO and stakeholders will strive to become as
  well informed as possible, to communicate their
  views fully and openly and to support others in
  doing the same.
• Independent facilitation and advanced stakeholder
  engagement techniques used as appropriate.
• Regularly measure and assess the effectiveness