Alberta Electric System Operator

Interim Market Power Mitigation – June Information Session

On June 11, 2024, the Alberta Electric System Operator (AESO) held its second information session concerning the interim market power mitigation regulations that go into effect on July 1, 2024. In its first session, the AESO described the Market Power Mitigation Regulation and Supply Cushion Regulation and answered an initial round of stakeholder questions. In this session, the AESO shared its final details for implementing these regulations, provided an overview of the reporting processes and requirements for July 1, and addressed stakeholder questions and comments.



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AESO Rate DOS Updates Application

In proceeding 28989, the Alberta Electric System Operator (AESO) submits an application before the Alberta Utilities Commission (the Commission) to update its Rate Demand Opportunity Service (DOS). With these updates, the AESO aims to make the rate technology agnostic, simpler, and easier to administer. One key issue the AESO hopes to resolve with this update is to make it easier for energy storage resources to participate in Alberta’s market; but the AESO also emphasizes that these changes will benefit all users of the DOS rate and demand transmission service (DTS).[1]



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Reconsideration of DFO Contribution in Aid of Construction Policy

The Alberta Utilities Commission (the Commission) has initiated proceeding 29006 in response to the Alberta Court of Appeal (the Court) decision in AltaLink Management Ltd. v Alberta Utilities Commission, 2023 ABCA 325 (the Appeal Decision). The Court allowed the appeal of Decision 26061-D01-2021 in which the Commission determined that neither transmission facility owners (TFOs) or distribution facility owners (DFOs) would have the ability to receive a return on construction contributions.[1]



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Interim Market Power Mitigation Details and Stakeholder Meeting

On April 18, 2024, the Alberta Electric System Operator (AESO) held a stakeholder session where it provided an overview of the interim market power mitigation regulations that go into effect on July 1, 2024. There are two specific regulations: the Market Power Mitigation Regulation and the Supply Cushion Regulation. The goal of the session was to explain these regulations, their implementation, and to answer any additional questions.



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AMP Decision

The Alberta Utilities Commission (the Commission) issues its decision on the Revised Adjusted Metering Practice (AMP) implementation plan submitted by the AESO (Decision 28441-D02-2024). The AESO’s original AMP plan was rejected by the Commission in 2022, but the AESO was permitted to apply again if it provided clearer estimates for all scopes of work and a cost-benefit analysis. Evidence and arguments for this proceeding showed that parties were split into three groups – supportive of the plan without delay, supportive but in favour of a later implementation, and generally opposed.  



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The AESO and MSA Energy Market Recommendations

The Alberta Electric System Operator (AESO) and the Market Surveillance Administrator (MSA) have provided recommendations to the Minister of Affordability and Utilities for changes to the electricity market in Alberta. The proposed market changes are aimed at addressing concerns around supply adequacy and affordability.



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Revised AMP Implementation Evidence and Argument

In Proceeding 28441, interveners submit their evidence in support or opposition to the revised adjusted metering practice (AMP) plan applied for by the Alberta Electric System Operator (AESO). The AESO’s original AMP plan was rejected by the Alberta Utilities Commission (the Commission) in 2022. Evidence in this proceeding was submitted by AltaLink Management Ltd. (AltaLink), and the AESO in support of the implementation plan, by Fortis arguing for changes to the timing of AMP, and by the DCG Consortium in opposition to the plan.



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AltaLink 2024-2025 NSA Application

In proceeding 28174, AltaLink Management Inc. (AltaLink) applies to the Alberta Utilities Commission (the Commission) for the approval of a negotiated settlement agreement (NSA). The NSA was made between AltaLink, the Alberta Direct Connect Customers, the Consumers’ Coalition of Alberta (CCA), the Alberta Federation of REA’s Ltd. (AFREA), the Industrial Power Consumers Association of Alberta (IPCAA), and the Utilities Consumer Advocate (UCA).

The Commission permitted a negotiated settlement process on all but the following two matters:[1]

  • AltaLink’s proposed wildfire deferral account.
  • AltaLink’s request to recover $11 million in returns incurred over the 2022-2023 period that apply to 2019-2021 actual salvage expenditures.

Additionally, parties involved in the negotiated settlement agreed to exclude three additional matters that are closley related to the two excluded by the Commission:[2]

  • AltaLink’s 2024-2025 forecast salvage expenditures.
  • AltaLink’s 2019-2023 actual salvage expenditures.
  • AltaLink’s Wildfire Mitigation Plan business cases.

The NSA also did not result in any changes to AltaLink’s terms and conditions.[3]



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AESO Symposium on Market Pathways

In the last week of November, the Alberta Electric System Operator (AESO) held its 2023 Symposium where it provided stakeholders with updates regarding the transmission system, reliability, and market pathways. One prevailing issue the AESO is working to resolve is the lack of firm energy capacity available on Alberta’s electric grid. While Alberta’s electric energy supply has been reasonably maintained through the energy-only and ancillary markets, it is anticipated that a greater baseline capacity is needed for Alberta’s future energy needs.



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Contributions in Aid of Construction Appeal

The Court of Appeal of Alberta (the Court) has issued its decision regarding the appeal of Alberta Utilities Commission (AUC) Decision 26061-D01-2021. The appeal was filed by AltaLink Management Ltd. (AltaLink), ATCO Electric Ltd., ENMAX Power Corporation, and EPCOR Distribution & Transmission Inc.  The crux of this appeal is the Commission’s treatment of contributions in aid of construction. In Decision 26061-D01-2021, the Commission disallowed transmission and distribution facility owners (TFOs and DFOs) from earning a return on contributions in aid of construction, despite affirming that the current practice was in line with the legislative framework. The utilities could then only treat the contributions as expenses in the year of disbursement because of the decision. The four DFOs filed an appeal with the Alberta court.[1]



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