Association of Power Producers of Ontario
Encyclopedia
The Association of Power Producers of Ontario (abbreviated APPrO) is a trade and professional body representing commercial electricity generators in Ontario, and the largest organization of its type in Canada. APPrO was established in 1986 as the Independent Power Producers’ Society of Ontario (IPPSO) and changed its name to APPrO in 2003. It projects a unified voice of advocacy for Ontario-based generators of all types, addressing a range of public policy and regulatory issues of concern to the power industry. The organization also operates industry conferences and produces a number of publications, both hardcopy and electronic. The APPrO conference is the largest annual event of its type in Canada, and its magazine, IPPSO FACTO, is considered by many in the industry to be one of the most authoritative periodicals on electricity business and policy issues in Canada.
APPrO currently has about 100 corporate members who collectively produce more than 95% of the electricity made in Ontario. Corporate members include some of the most well-known names in the Canadian power business such as Ontario Power Generation
, Bruce Power
and Brookfield Renewable Power, along with many lesser-known companies. The total value of assets owned or operated by APPrO members is estimated at more than C$50 billion and the total annual sales of electricity by APPrO members exceeds C$7 billion per year (wholesale value). APPrO members produce electricity from a range of sources including natural gas, hydroelectricity
(waterpower), cogeneration
, windpower, solar energy, biomass
(wood waste), biogas
, nuclear energy
, coal
, and other sources.
The organization has been a leading advocate for public policies and regulatory treatments that it believes would facilitate the development of power generation in the province and assist in the development of a more open and competitive market for power.
APPrO’s mission statement cites the following as its top objective: The achievement of an economically and environmentally sustainable electricity sector in Ontario that supports the business interests of electricity generators including a reasonable rate of return.
APPrO’s current advocacy work is focused on regulatory and policy issues affecting generators in Ontario including electricity market rules, power procurement processes, the regulation of the natural gas market, both provincially and federally, climate change rules and compliance mechanisms, approval requirements, transmission development, distributed generation
, and a number of other issues.
APPrO's predecessor IPPSO was one of the forces that helped convince the Ontario government to end the near-monopoly status of the former Ontario Hydro and introduce a competitive wholesale market for electricity in the province.
The organization is governed by a Board of 28 directors, and is operated on a day to day basis by a President, an Executive Director and support staff. 14 of the directors are appointed as direct representatives of major generator members or staff, and the remainder are elected from various categories of APPrO members. The first full-time (and current) president of APPrO is David Butters. The Executive Director is Jake Brooks.
APPrO describes its role as one in which it has “raised awareness and understanding of its members' concerns with senior decision-makers in government, regulatory bodies and the public at large.” One of its publications says “Through its consistent record of insightful and constructive input, top-notch spokespeople, landmark conferences and widely respected publications, APPrO has earned status as a key stakeholder in Ontario's energy sector that ensures it will be consulted on any major developments of concern.” APPrO has formally intervened in a large number of public hearings and policy development consultations.
Over the years, APPrO's efforts have affected important decisions in the areas of ramp rates, natural gas supply services, net load billing for network transmission services, market design, and large number of technical rules and procedures. APPrO has worked closely with the Ontario government to ensure that the concerns and perspectives of its members are reflected in the contracting process for various procurement processes. APPrO says it intends to continue to advocate for “fair access to the market for all generators, reasonable terms for interconnection to the electric grid, a more efficient system in the future, and lower costs for all users of the electric system in Ontario.”
Goals for Evolution of the Electricity Sector:
Principles for Evolution:
1. Decisions affecting the power sector should be made on an economically rational basis
2. Prices should reflect the true cost/value of production.
3. Robust competition among generators is a critical factor in achieving the optimal electricity cost for Ontario consumers.
4. Public and private sector entities should compete on a level playing field.
5. Markets with multiple sellers and buyers are the most effective way to harness the benefits of competition.
6. Stable and predictable public policy is critical to efficient investment and effective markets.
Regularly featuring the Ontario Minister of Energy as a keynote speaker, along with senior executives, regulators, and a range of experts from the provincial and national power sector, it has become a key place for important announcements and for the industry to discuss the critical concerns of the day. The 2009 event attracted more than 1000 people and featured more than 60 speakers.
Public information initiative:
"Powering Ontario’s Future", begun by APPrO in 2007
A wide range of statements and releases, many of which can be seen on APPrO’s what’s new page.
APPrO currently has about 100 corporate members who collectively produce more than 95% of the electricity made in Ontario. Corporate members include some of the most well-known names in the Canadian power business such as Ontario Power Generation
Ontario Power Generation
Ontario Power Generation is a public company wholly owned by the Government of Ontario. OPG is responsible for approximately 70% of the electricity generation in the Province of Ontario, Canada. Sources of electricity include nuclear, hydroelectric, solar, wind, and fossil fuel...
, Bruce Power
Bruce Power
Bruce Power Limited Partnership is a Canadian business partnership composed of several corporations. It exists as a partnership between Cameco Corporation , TransCanada Corporation , BPC Generation Infrastructure Trust , the Power Workers Union and The Society of Energy Professionals...
and Brookfield Renewable Power, along with many lesser-known companies. The total value of assets owned or operated by APPrO members is estimated at more than C$50 billion and the total annual sales of electricity by APPrO members exceeds C$7 billion per year (wholesale value). APPrO members produce electricity from a range of sources including natural gas, hydroelectricity
Hydroelectricity
Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy...
(waterpower), cogeneration
Cogeneration
Cogeneration is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat....
, windpower, solar energy, biomass
Biomass
Biomass, as a renewable energy source, is biological material from living, or recently living organisms. As an energy source, biomass can either be used directly, or converted into other energy products such as biofuel....
(wood waste), biogas
Biogas
Biogas typically refers to a gas produced by the biological breakdown of organic matter in the absence of oxygen. Organic waste such as dead plant and animal material, animal dung, and kitchen waste can be converted into a gaseous fuel called biogas...
, nuclear energy
Nuclear power
Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...
, coal
Fossil fuel power plant
A fossil-fuel power station is a power station that burns fossil fuels such as coal, natural gas or petroleum to produce electricity. Central station fossil-fuel power plants are designed on a large scale for continuous operation...
, and other sources.
The organization has been a leading advocate for public policies and regulatory treatments that it believes would facilitate the development of power generation in the province and assist in the development of a more open and competitive market for power.
APPrO’s mission statement cites the following as its top objective: The achievement of an economically and environmentally sustainable electricity sector in Ontario that supports the business interests of electricity generators including a reasonable rate of return.
APPrO’s current advocacy work is focused on regulatory and policy issues affecting generators in Ontario including electricity market rules, power procurement processes, the regulation of the natural gas market, both provincially and federally, climate change rules and compliance mechanisms, approval requirements, transmission development, distributed generation
Distributed generation
Distributed generation, also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, generates electricity from many small energy sources....
, and a number of other issues.
Structure and History
APPrO has frequently put forward the view that the greatest benefits for consumers of electricity are likely to be achieved through the development of open and competitive markets for the production of electricity. Since it was established in 1986, APPrO has been one of the most vocal and consistent advocates for increasing the use of renewable energy in Ontario. Originally incorporated as the Independent Power Producers’ Society of Ontario, the organization grew in scale and scope during the 1990s.APPrO's predecessor IPPSO was one of the forces that helped convince the Ontario government to end the near-monopoly status of the former Ontario Hydro and introduce a competitive wholesale market for electricity in the province.
The organization is governed by a Board of 28 directors, and is operated on a day to day basis by a President, an Executive Director and support staff. 14 of the directors are appointed as direct representatives of major generator members or staff, and the remainder are elected from various categories of APPrO members. The first full-time (and current) president of APPrO is David Butters. The Executive Director is Jake Brooks.
APPrO describes its role as one in which it has “raised awareness and understanding of its members' concerns with senior decision-makers in government, regulatory bodies and the public at large.” One of its publications says “Through its consistent record of insightful and constructive input, top-notch spokespeople, landmark conferences and widely respected publications, APPrO has earned status as a key stakeholder in Ontario's energy sector that ensures it will be consulted on any major developments of concern.” APPrO has formally intervened in a large number of public hearings and policy development consultations.
Over the years, APPrO's efforts have affected important decisions in the areas of ramp rates, natural gas supply services, net load billing for network transmission services, market design, and large number of technical rules and procedures. APPrO has worked closely with the Ontario government to ensure that the concerns and perspectives of its members are reflected in the contracting process for various procurement processes. APPrO says it intends to continue to advocate for “fair access to the market for all generators, reasonable terms for interconnection to the electric grid, a more efficient system in the future, and lower costs for all users of the electric system in Ontario.”
Positions and Principles
A vision statement released by APPrO in 2006 cited the following as among its goals and as its “preferred direction for evolution of the electricity sector”:Goals for Evolution of the Electricity Sector:
- Encourage efficient and timely investment in Ontario’s power system to ensure adequacy and reliability.
- Produce the optimal electricity cost for Ontario consumers.
Principles for Evolution:
1. Decisions affecting the power sector should be made on an economically rational basis
2. Prices should reflect the true cost/value of production.
3. Robust competition among generators is a critical factor in achieving the optimal electricity cost for Ontario consumers.
4. Public and private sector entities should compete on a level playing field.
5. Markets with multiple sellers and buyers are the most effective way to harness the benefits of competition.
6. Stable and predictable public policy is critical to efficient investment and effective markets.
The Canadian Power Conference and Trade Show
APPrO’s annual conference, which celebrated its 20th anniversary in 2008, has become the largest annual event in the Canadian power generation industry.Regularly featuring the Ontario Minister of Energy as a keynote speaker, along with senior executives, regulators, and a range of experts from the provincial and national power sector, it has become a key place for important announcements and for the industry to discuss the critical concerns of the day. The 2009 event attracted more than 1000 people and featured more than 60 speakers.
Publications
IPPSO FACTO, APPrO’s magazine (available in both hardcopy and online forms)Public information initiative:
"Powering Ontario’s Future", begun by APPrO in 2007
A wide range of statements and releases, many of which can be seen on APPrO’s what’s new page.
External links
- APPrO’s corporate website
- APPrO’s Conference website
- APPrO’s online Industry Directory
- APPrO’s online magazine website
Links to other power producer organizations
- Independent Power Producers Society of Alberta (IPPSA)
- Independent Power Association of British Columbia (IPPBC)
- Canadian Electricity Association (CEA)
- Electric Power Supply Association (EPSA)
- Independent Power Producers of New York (IPPNY)
- OSEA (Ontario Sustainable Energy Association)
- CanWEA (Canadian Wind Energy Association)
- OWA (Ontario Waterpower Association)
- WADE (The World Alliance for Decentralized Energy)