The IESO was first designated the SME in 2007 by regulation and granted a temporary SME licence. Since that time, the IESO has been working with local distribution companies (LDC) on required agreements and an appropriate rate structure for recovering Meter Data Management and Repository (MDM/R) costs. It also continues to work with LDCs on SME governance.

In its decision last month, the OEB indicated that any further SME licence hearings or proceedings should be triggered by actual events when they occur, such as an IESO application to charge LDCs to recover MDM/R costs or an application by a new entity to become the SME.

As the SME, the IESO supports the implementation of time-of-use billing across the province by operating the MDM/R and integrating LDC smart meters and systems with it.