AESO Constraint Management Cost Recovery

The AESO has filed an application to amend the ISO tariff for the purposes of recovering the costs paid to market participants for transmission constraint rebalancing in accordance with the Revised ISO Real Time Transmission Constraint Management Rule (“TCM Rule”).

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Transmission Constraint Management Cost Recovery

Recall from the previous industry update that the AESO has been conferring with market participants on a revised Transmission Constraint Management (TCM) Rule. Part of the revision includes modifying how the AESO recovers costs related to Real Time Transmission must run (RTMR). In October, the AESO responded to stakeholder comments on proposed changes.

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Transmission Constraint Management

Recall from previous Industry Updates that in 2013 (Decision 2013-135), the Alberta Utilities Commission found that the AESO’s Transmission Constraint Management (TCM) rule is not infrequent or of a short duration, nor is the price impact minimal.” Moreover, the Commission determined that the rule is technically deficient and not in the public interest due to the “significant and unnecessary” costs of congestion management borne by the customer. Consequently, the AESO was ordered to change the current TCM rule according to guidelines set out in the decision.*

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