1. 1 MR-00305 (“Day-Ahead Reliability Guarantees”) – A Correction IESO Technical Panel Meeting Tuesday, December 13 th 2005 IESOTP 175-5L

2. 2 MR-00305 Part – R02 A minor correction needs to be made to the formulation of the Day Ahead Import Failure Charge in part R02 of the amendment This correction will ensure that the cap on the maximum charge payable works correctly in those intervals where the real-time energy market price in Ontario is LESS THAN zero The formula is otherwise correct for situations where the real-time energy market price in Ontario is GREATER THAN zero

3. 3 MR-00305 Part – R02 Under the current formulation, when the real- time energy market price in Ontario is LESS THAN zero, the price cap could result in a positive payment to the market participant even in situations where there is a shortfall illustrated…

4. 4 MR-00305 Part – R02 The current formulation:

5. 5 MR-00305 Part – R02 The current formulation: CORRECTINCORRECT

6. 6 MR-00305 Part – R02 In fact the penalty should: 1.Reflect the intention to cap the penalty at a value no greater than the real-time energy market price in Ontario; and 2.Ensure that the cap does imply a positive pay-out to the market participant when the price is negative.

7. 7 MR-00305 Part – R02 In fact the penalty Desired outcome:

8. 8 MR-00305 Part – R02 Current formulation: Proposed Revision:

9. 9 End of Slides