March 18 - 21, 2025 | Discussion at REM Design Finalization Week 2
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, R60, DAC)
Cost recovery of new AS not in REM (F-suite, Strategic Reserves)
Existing Ancillary Services
Engagement Schedule
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.
March 18 - 21, 2025 | Discussion at REM Design Finalization Week 2
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, R60, DAC)
Cost recovery of new AS not in REM (F-suite, Strategic Reserves)
Existing Ancillary Services
Engagement Schedule
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.
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
To submit your feedback, you will need to be registered and signed in on the AESO Engage platform.
Please click on the "Submit Your Insights Here" box below to provide your specific comments.
You have the ability to submit multiple times.
Stakeholder Feedback results will be posted on AESO Engage, in their original state.
Responses due by March 31, 2025.
Stakeholder Questions
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.
If you have done any studies or prepared any research on these topics, please attach it here.
ISO Tariff Redesign Kick-off Information Session | Mar. 5, 2025
Ancillary Services Cost Allocation has finished this stage
Phase 1 | March - May, 2025
Ancillary Services Cost Allocation is currently at this stage
REM AS discussion with previous REM Design Sprint participants: We will be participating in the REM Design Finalization sessions (week of March 17, 2025) to specifically address Ancillary Services Cost Allocation for REM products. We are asking interested stakeholders to provide us with their insights for discussion at REM DF2 with an opportunity to provide further suggestions by March, 27, 2025.
There will be an opportunity for the broader stakeholder group to listen into these sessions to learn.
Phase 2 | June - Aug. 2025
this is an upcoming stage for Ancillary Services Cost Allocation
Broad stakeholder engagement on Ancillary Services Cost Allocation: We will provide stakeholders with requested studies and a jurisdictional scan. We will also present a starting point for principles, option for cost allocation and cost recovery mechanism and solicit stakeholders' ideas on same. Interested stakeholders will be asked to provide their alternatives for principles.
The AESO will develop more focused workshops with interested stakeholders to discuss their alternatives and share learnings with the broader stakeholder group.
Phase 3 | Sept. 2025
this is an upcoming stage for Ancillary Services Cost Allocation
Stakeholder review of proposed options: The AESO will provide outcomes of the workshops hosted in phase 2, as well as the options that resulted from these. Stakeholder feedback will be requested on these options. Taking this feedback into consideration, we will develop a "recommended option" and allow stakeholders another opportunity for comments.
The AESO will take this feedback into consideration as it develops its Ancillary Services Cost Allocation AUC Application.
AUC Application | Q1 - Q3, 2026
this is an upcoming stage for Ancillary Services Cost Allocation
