Today, the AESO received direction from the Minister of Affordability and Utilities regarding Incumbency recognition and GUOC refund implementation. Learn more
Design Objective & Key Challenge
Develop a framework for TRP, OTP and REM that balances Government policy, investability and affordability.
Components of the Congestion Management Framework
Locational Marginal Pricing (LMP)
Instead of one price for all of Alberta, prices vary across Alberta at individual nodes
Congestion impacts local prices
Financial Transmission Rights (FTRs)
Financial protection against LMP risk (price differences between nodes)
Potential addition to the congestion framework to manage LMP risk
Optimal Transmission Planning (OTP)
Alternative to congestion-free transmission planning
Optimize transmission by planning and building transmission for supply only when it provides a net benefit to Albertans
Transmission Reinforcement Payment (TRP)
Non-refundable upfront payment by new generators
Calculated as a function of proximity to capacity, technical attributes/characteristics and cost of reinforcing the transmission system
Today, the AESO received direction from the Minister of Affordability and Utilities regarding Incumbency recognition and GUOC refund implementation. Learn more
Design Objective & Key Challenge
Develop a framework for TRP, OTP and REM that balances Government policy, investability and affordability.
Components of the Congestion Management Framework
Locational Marginal Pricing (LMP)
Instead of one price for all of Alberta, prices vary across Alberta at individual nodes
Congestion impacts local prices
Financial Transmission Rights (FTRs)
Financial protection against LMP risk (price differences between nodes)
Potential addition to the congestion framework to manage LMP risk
Optimal Transmission Planning (OTP)
Alternative to congestion-free transmission planning
Optimize transmission by planning and building transmission for supply only when it provides a net benefit to Albertans
Transmission Reinforcement Payment (TRP)
Non-refundable upfront payment by new generators
Calculated as a function of proximity to capacity, technical attributes/characteristics and cost of reinforcing the transmission system
Today, the AESO received direction from the Minister of Affordability and Utilities regarding Incumbency recognition and GUOC refund implementation. Learn more
Information Session | October 7, 2025
Purpose
We will host a virtual information on October 7, 2025 from 9:00 am to 12:00 pm. We will present more information on implementation of incumbency treatment (transition payments and eligibility) with market participants. We will also provide more information on the one-time opportunity for GUOC refunds upon project cancellation.
Stakeholders will have opportunities to ask questions throughout the session.
Will be available at the session under "AESO Materials"
Information Session | September 9, 2025
Purpose
The AESO will host a virtual information session on September 9, 2025 from 9:00 a.m. to 12:00 p.m.. We will provide stakeholders with an update on decisions and opportunities for further discussion related to the overall Congestion Management Framework components:
Optimal Transmission Planning (OTP) Methodology,
Locational Marginal Pricing (LMP),
Transmission Reinforcement Payment (TRP) and
Financial Transmission Rights (FTRs).
Stakeholders had opportunities to ask questions throughout the session.
Materials
Are available under "AESO Materials"
Stakeholder Update | October 6, 2025
Today, the AESO received direction from the Minister of Affordability and Utilities regarding Incumbency recognition and GUOC refund implementation. Learn more
Information Session | October 7, 2025
Purpose
We will host a virtual information on October 7, 2025 from 9:00 am to 12:00 pm. We will present more information on implementation of incumbency treatment (transition payments and eligibility) with market participants. We will also provide more information on the one-time opportunity for GUOC refunds upon project cancellation.
Stakeholders will have opportunities to ask questions throughout the session.
Will be available at the session under "AESO Materials"
Information Session | September 9, 2025
Purpose
The AESO will host a virtual information session on September 9, 2025 from 9:00 a.m. to 12:00 p.m.. We will provide stakeholders with an update on decisions and opportunities for further discussion related to the overall Congestion Management Framework components:
Optimal Transmission Planning (OTP) Methodology,
Locational Marginal Pricing (LMP),
Transmission Reinforcement Payment (TRP) and
Financial Transmission Rights (FTRs).
Stakeholders had opportunities to ask questions throughout the session.
The AESO will also continue to work with stakeholders on developing a long-term congestion management approach to provide appropriate risk management to support ongoing investability in our market.
July 2024 Direction Letter
Move away from the current zero-congestion planning standard to an optimally planned transmission planning standard
Allocate new transmission infrastructure costs and all ancillary services costs based on cost causation principles
December 2024 Direction Letter
AESO will develop a market-based congestion management mechanism that recognizes incumbency, provides impacted generators with a means of managing the dispatch risk arising from congestion constraints
Implement a cost allocation framework for new transmission infrastructure based on cost-causation principles by requiring new generators to contribute to transmission infrastructure costs by replacing the Generating Unit Owner’s Contribution (GUOC) with an upfront and non-refundable TRP
TRP rates will be calculated as a function of the suppliers’ proximity to transmission capacity, their technical attributes and characteristics and the cost of reinforcing the transmission system
Government Policy Directions
July 2025 Direction Letter
The AESO will also continue to work with stakeholders on developing a long-term congestion management approach to provide appropriate risk management to support ongoing investability in our market.
July 2024 Direction Letter
Move away from the current zero-congestion planning standard to an optimally planned transmission planning standard
Allocate new transmission infrastructure costs and all ancillary services costs based on cost causation principles
December 2024 Direction Letter
AESO will develop a market-based congestion management mechanism that recognizes incumbency, provides impacted generators with a means of managing the dispatch risk arising from congestion constraints
Implement a cost allocation framework for new transmission infrastructure based on cost-causation principles by requiring new generators to contribute to transmission infrastructure costs by replacing the Generating Unit Owner’s Contribution (GUOC) with an upfront and non-refundable TRP
TRP rates will be calculated as a function of the suppliers’ proximity to transmission capacity, their technical attributes and characteristics and the cost of reinforcing the transmission system
Page last updated: 23 Feb 2026, 12:23 PM
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Level of Engagement
Inform: Share information with stakeholders
Lifecycle
Information Session | Sept. 9, 2025
Congestion Management Framework has finished this stage
Update on Congestion Management Framework.
Information Session | Oct. 7, 2025
Congestion Management Framework has finished this stage
Focus on Incumbency Treatment and GUOC Refunds upon project cancellation
Ad Hoc Updates
Congestion Management Framework is currently at this stage
The AESO will determine if an update is necessary as the different components progress through their individual initiatives.