The Ontario Power Authority (OPA) has released three discussion papers on the potential role of Customer Entitlement Agents (CEAs – renamed from Load Serving Entities) within Ontario. CEAs would potentially serve as a mechanism to provide rate stability and transparency for consumers and a means to facilitate proper management of the electricity load risks in the forward market.

These discussion papers are:

1. Assessment of Customer Entitlement Agents for the Ontario Electricity Market,
2. Load-Serving Entity Structures in Other Jurisdictions, and
3. Results of Proof-of-Concept Analysis.

In support of an evaluation of the CEA concept, the OPA has conducted two streams of dialogue. The OPA invited organizations that partake in electricity market activities to participate in CEA dialogue that occurred throughout 2007.

Three groups were involved in the CEA dialogue: Wholesale Market Group (e.g., energy retailers, marketers and generators), Implementing Group (e.g., Local Distribution Companies and customer advocacy groups), and Facilitating Group (e.g., Independent Electricity System Operator and the Ontario Energy Board). The OPA also met with special interest groups and on an individual basis with interested stakeholders.

The second stream of dialogue was with Proof of Concept pilot study participants. The OPA’s Proof of Concept pilot study, serves as a laboratory to examine a number of factors, issues and data to better understand how the CEA initiative could work in Ontario.

The CEA project is being conducted by the OPA as a pilot initiative. It addresses one of the OPA's strategic objectives to identify and develop innovative strategies to encourage and facilitate competitive market-based responses and options for meeting overall electricity system needs.

If you have any questions on the CEA initiative, please feel free to contact:

Brett Jennings
Conservation and Sector Development
Ontario Power Authority
416-969-6320
brett.jennings@powerauthority.on.ca