1. IESO’s Stakeholder Planning Market Operations Standing Committee Meeting Wednesday, October 19, 2005

2. 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. 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. 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. 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. 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. 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. 8 Current Stakeholder Plans …see: http://www.ieso.ca/imoweb/consult/activeComplete.asp http://www.ieso.ca/imoweb/consult/activeComplete.asp

9. 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. 10 Stakeholder Engagement: Principles 1.Stakeholder engagement is essential 2.Meaningful opportunities to provide input 3.Varying levels of stakeholder engagement available 4.Decision making process transparent and defined 5.Stakeholder views communicated to decision makers 6.Decisions and rationale communicated including how input taken into account in the decision 7.IESO endorses processes and communicates outcomes 8.Inclusive process, opportunity for all with an interest to participate. 9.Actively encourage all stakeholder sectors to participate; no constituency to have undue influence 10.Stakeholder’s commitment to keep host organization informed and have the authority and willingness to represent their organization’s views 11.Stakeholder processes are efficient and cost effective 12.Stakeholder input used to develop options to facilitate resolution of differing points of view 13.Timely, accessible and accurate information available to understand implications of alternatives 14.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. 15.Independent facilitation and advanced stakeholder engagement techniques used as appropriate. 16.Regularly measure and assess the effectiveness