Ancillary Services Cost Allocation

Important Dates & Materials

Jan. 27 | Engagement Schedule updated

Oct. 8, 2025 | Stakeholder Update

Following the release of the addendum to FFR+ rationale document and received stakeholder feedback, the AESO is considering concepts and associated designs for procuring FFR. The workshop scheduled for October 21–22 is postponed in favour of a more productive session on cost causation and recovery once design decisions are made.

Note that we have closed the associated discussion forum and will re-open it when a new date for the workshop is announced.

Those who have registered will receive a cancellation notice by email. We apologize for any inconvenience and appreciate your understanding.

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:

  • Phase 1: Cost recovery of AS in REM (R10, R30, R60, DAC)
  • Phase 2: Cost recovery of new AS not in REM (F-suite, Strategic Reserves)
  • Phase 3: 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.

Engagement Schedule (Updated Jan. 27, 2026)


Important Dates & Materials

Jan. 27 | Engagement Schedule updated

Oct. 8, 2025 | Stakeholder Update

Following the release of the addendum to FFR+ rationale document and received stakeholder feedback, the AESO is considering concepts and associated designs for procuring FFR. The workshop scheduled for October 21–22 is postponed in favour of a more productive session on cost causation and recovery once design decisions are made.

Note that we have closed the associated discussion forum and will re-open it when a new date for the workshop is announced.

Those who have registered will receive a cancellation notice by email. We apologize for any inconvenience and appreciate your understanding.

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:

  • Phase 1: Cost recovery of AS in REM (R10, R30, R60, DAC)
  • Phase 2: Cost recovery of new AS not in REM (F-suite, Strategic Reserves)
  • Phase 3: 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.

Engagement Schedule (Updated Jan. 27, 2026)


Discussions: All (6) Open (0)

  • General - Cost Allocation

    6 months ago
    2 Responses
    CLOSED: This discussion is on hold until further notice.

    You need to be signed in to add your comment.

    Have you thought about how costs could be allocated for frequency response services (FFR, FRR, FFR+)? If so, please share your ideas.

    Go to discussion
    Replies Closed

  • Methodology

    6 months ago
    2 Responses
    CLOSED: This discussion is on hold until further notice.

    You need to be signed in to add your comment.

    When designing cost allocation for each product, what should the AESO consider? Should each product have its own method, or should the same method apply to all?

    Go to discussion
    Replies Closed

  • Data Source

    6 months ago
    1 Response
    CLOSED: This discussion is on hold until further notice.

    You need to be signed in to add your comment.

    Would you prefer cost allocation to be based on actual or forecast data?

    Go to discussion
    Replies Closed

  • Other Considerations

    6 months ago
    1 Response
    CLOSED: This discussion is on hold until further notice.

    You need to be signed in to add your comment.

    Are there other factors the AESO should consider when choosing the most appropriate cost allocation approach?

    Go to discussion
    Replies Closed

  • Use of FFR+ for Other Needs

    6 months ago
    1 Response
    CLOSED: This discussion is on hold until further notice.

    You need to be signed in to add your comment.

    Do you agree that using FFR+ to support other reliability and system needs is appropriate? If no, why not? If yes, what cost allocation method would be most appropriate? Could a fixed percentage by technology type or class (based on historical data) be effective, or should the method reflect the role FFR+ plays in each interval?

    Go to discussion
    Replies Closed

  • Research or Studies

    6 months ago
    CLOSED: This discussion is on hold until further notice.

    You need to be signed in to add your comment.

    Have you done any studies or research related to these topics that you would like to share? If yes, please note here and send to ISOTariffRedesign@aeso.ca

    Go to discussion
    Replies Closed
Page last updated: 05 Feb 2026, 10:48 AM