Ancillary Services Cost Allocation

Important Dates & Materials

December 16 | Engagement Schedule updated

Postponed | October 21 - 22 | AS Cost Allocation Workshop

September 17 - October 10 | Discussion Board open

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 December 16, 2025)


Important Dates & Materials

December 16 | Engagement Schedule updated

Postponed | October 21 - 22 | AS Cost Allocation Workshop

September 17 - October 10 | Discussion Board open

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 December 16, 2025)


  • 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: 16 Dec 2025, 11:55 AM