IESO’s Stakeholder Planning

1. IESO’s 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 IESO’s 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 organization’s 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 • Mr. Chuck Stradling - BOMA Toronto - Executive Vice-President, representing commercial consumers Transmission • Mr. Steve Dorey - Vice President - External Relations, Hydro One Residential • Ms. Julie Girvan - Energy Advisor, Consumers Council of Canada Environmental • Mr. Bruce Lourie - President, Ivey Foundation Non Voting • Mr. Bruce Campbell - Vice-President - Corporate Relations and Market Development, representing the Independent Electricity System Operator

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@ieso.ca

8. Current Stakeholder Plans …see:http://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 • Stakeholder’s commitment to keep host organization informed and have the authority and willingness to represent their organization’s 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