Ancillary Services Cost Allocation

Key Dates & Materials

October 21 - 22 | Save the Date | AS Cost Allocation Workshop

September 10 | Phase 2 Kick-off Information Session CANCELLED

June 17 - 20 | Discussion at REM Design Finalization Week 4

May 12 | Engagement Schedule updated

April 1 | Consolidated Stakeholder Feedback posted

Sept. 3, 2025 | Stakeholder Update

In the interest of time and efficiency, we have cancelled the Phase 2 kick-off information session scheduled for September 10. Those who had registered will receive a cancellation notice by email.

Save the Date! Hybrid Workshop – October 21 & 22, 2025

The intent is to work with stakeholders to develop and implement methodologies and recovery mechanisms for the costs incurred to procure frequency response products (FFR, FRR, FNDR, FFR+) needed to meet system reliability requirements. We will present initial cost allocation starting points derived from the cost causation data collected and provide opportunities for participants to ask questions, share feedback on the proposed approaches and present alternate proposals.

Registration information, discussion board and pre-read materials will be provided in the coming weeks.

Engagement Schedule (Updated September 3, 2025)

Purpose

To discuss the most appropriate cost allocation for new ancillary services (AS) proposed as part of the Restructured Energy Market (REM), as well as existing ancillary service products, engage on the cost recovery mechanism and inform stakeholders of the corresponding regulatory strategy.

Scope

The following topics will be covered in this workstream:

  • Cost recovery of AS in REM (R10, R30, R60, DAC)
  • Cost recovery of new AS not in REM (F-suite, Strategic Reserves)
  • Existing Ancillary Services

Background

We are revisiting the cost allocation framework for ancillary services as a result of the direction provided by the Minister of Affordability and Utilities on July 3, 2024 to allocate all transmission costs going forward based on cost causation principles.

Key Dates & Materials

October 21 - 22 | Save the Date | AS Cost Allocation Workshop

September 10 | Phase 2 Kick-off Information Session CANCELLED

June 17 - 20 | Discussion at REM Design Finalization Week 4

May 12 | Engagement Schedule updated

April 1 | Consolidated Stakeholder Feedback posted

Sept. 3, 2025 | Stakeholder Update

In the interest of time and efficiency, we have cancelled the Phase 2 kick-off information session scheduled for September 10. Those who had registered will receive a cancellation notice by email.

Save the Date! Hybrid Workshop – October 21 & 22, 2025

The intent is to work with stakeholders to develop and implement methodologies and recovery mechanisms for the costs incurred to procure frequency response products (FFR, FRR, FNDR, FFR+) needed to meet system reliability requirements. We will present initial cost allocation starting points derived from the cost causation data collected and provide opportunities for participants to ask questions, share feedback on the proposed approaches and present alternate proposals.

Registration information, discussion board and pre-read materials will be provided in the coming weeks.

Engagement Schedule (Updated September 3, 2025)

Purpose

To discuss the most appropriate cost allocation for new ancillary services (AS) proposed as part of the Restructured Energy Market (REM), as well as existing ancillary service products, engage on the cost recovery mechanism and inform stakeholders of the corresponding regulatory strategy.

Scope

The following topics will be covered in this workstream:

  • Cost recovery of AS in REM (R10, R30, R60, DAC)
  • Cost recovery of new AS not in REM (F-suite, Strategic Reserves)
  • Existing Ancillary Services

Background

We are revisiting the cost allocation framework for ancillary services as a result of the direction provided by the Minister of Affordability and Utilities on July 3, 2024 to allocate all transmission costs going forward based on cost causation principles.

  • CLOSED: This survey has concluded.

    Optional Stakeholder Insights | March 5 - 31, 2025

    Purpose

    We are inviting stakeholders to share their cost allocation proposals for the discussion at REM Design Finalization Week 2 (DF2) March 18 - 21, 2025. We will be discussing any proposals received at DF2. Additional insights can be shared by March 31, 2025.

    Instructions

    1. To submit your feedback, you will need to be registered and signed in on the AESO Engage platform.
    2. Please click on the "Submit Your Insights Here" box below to provide your specific comments.
    3. You have the ability to submit multiple times.
    4. Stakeholder Feedback results will be posted on AESO Engage, in their original state.
    5. Responses due by March 31, 2025.

    Stakeholder Questions

    1. If you have considered what cost allocation might look like for the new REM Ancillary Services products (R10, R60 and DAC), please provide those insights here. Submissions received prior to REM Design Finalization Session 2 (DF2) may be highlighted there.
    2. If you have done any studies or prepared any research on these topics, please attach here.


Page last updated: 03 Sep 2025, 01:51 PM