Distribution System Operator Capabilities

In response to the 2024 Minister of Energy and Electrification’s Letter of Direction, the OEB is initiating a consultation to define a policy framework and set expectations for electricity distributors regarding the development of Distribution System Operator (DSO) capabilities. Developing DSO capabilities can provide new means for ensuring reliable and cost-effective distribution services at the same time as enhancing opportunities for Distributed Energy Resources (DERs).

A priority for this work will be ensuring that the introduction of DSO capabilities and potential evolution of the distribution utility deliver optimal value to customers over time. The result of the consultation will be to set out expectations and regulatory requirements regarding the introduction, pacing and scope of new functions at the distribution level, including the roles of electricity distributors.

This effort relates to several ongoing OEB DER-enablement and grid modernization activities, including the Non-Wires Solutions Guidelines, the Benefit-Cost Analysis Framework for Addressing Electricity System Needs, and the Distribution System Capacity Information Map. This project will also be informed by lessons learned from pilots and demonstration projects undertaken through the OEB/Independent Electricity System Operator (IESO)’s DER Integration Joint Targeted Call, and the OEB’s Innovation Sandbox Challenge.

In response to the 2024 Minister of Energy and Electrification’s Letter of Direction, the OEB is initiating a consultation to define a policy framework and set expectations for electricity distributors regarding the development of Distribution System Operator (DSO) capabilities. Developing DSO capabilities can provide new means for ensuring reliable and cost-effective distribution services at the same time as enhancing opportunities for Distributed Energy Resources (DERs).

A priority for this work will be ensuring that the introduction of DSO capabilities and potential evolution of the distribution utility deliver optimal value to customers over time. The result of the consultation will be to set out expectations and regulatory requirements regarding the introduction, pacing and scope of new functions at the distribution level, including the roles of electricity distributors.

This effort relates to several ongoing OEB DER-enablement and grid modernization activities, including the Non-Wires Solutions Guidelines, the Benefit-Cost Analysis Framework for Addressing Electricity System Needs, and the Distribution System Capacity Information Map. This project will also be informed by lessons learned from pilots and demonstration projects undertaken through the OEB/Independent Electricity System Operator (IESO)’s DER Integration Joint Targeted Call, and the OEB’s Innovation Sandbox Challenge.

  • OEB launches consultation of DSO capabilities

    The OEB is launching a consultation to develop a policy framework to set expectations for electricity distributors regarding the development of Distribution System Operator capabilities. This is in response to the Minister of Energy and Electrification’s December 2024 Letter of Direction to the OEB. Read the letter now:

  • The OEB engages with EDA on DSOs

    OEB staff recently met with the EDA's (Electricity Distributors Association) Operations & Engineering Council and Regulatory Council to discuss the OEB's activities related to DSOs. The presentation is accessible via the Consultation documents tab.

Page last updated: 28 Jan 2025, 12:05 PM