Congestion Management Framework

Important Dates & Materials

December 1 | Statutory Declarations due

November 3 | Stakeholder Feedback on Incumbency Treatment due

October 9 | Incumbency Treatment and GUOC Refunds session recording posted

October 7 | Incumbency Treatment and GUOC Refunds Information Session 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

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

Important Dates & Materials

December 1 | Statutory Declarations due

November 3 | Stakeholder Feedback on Incumbency Treatment due

October 9 | Incumbency Treatment and GUOC Refunds session recording posted

October 7 | Incumbency Treatment and GUOC Refunds Information Session 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

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

  • Stakeholder Feedback: Incumbency Treatment | Oct. 7 - Nov. 3, 2025

    We value stakeholder input and invite stakeholders to provide their feedback on the materials presented on incumbency treatment via the following stakeholder feedback form by November 3, 2025, at 4:00 p.m. MT. Please be as specific as possible with your responses. Thank you for your input.

    Purpose

    We are gathering feedback on behalf of the Minister of Affordability and Utilities (MAU) to support the implementation of the incumbency transition. All input received will be posted publicly on AESO Engage and shared with the MAU to inform decision-making.

    Instructions

    1. This feedback form is open to all industry stakeholders.
    2. Please fill out the sections below as indicated.
    3. Only one completed feedback form will be accepted per organization.
    4. To upload your completed feedback form:
      • You will need to be registered and signed in on the AESO Engage platform; and
      • You will need to be on the Congestion Management Framework page (https://aesoengage.aeso.ca/congestion-management-framework; and
      • Click on the "Submit Stakeholder Feedback" box below to upload your completed feedback form.

    All responses are due by November 3, 2025, at 4:00 p.m. MT. and will be shared on AESO Engage in their original format. If you have any questions, please email stakeholderrelations@aeso.ca.

    Questions

    1. Do you have alternative perspectives on incumbent transition payments that you would like to share? 
    2. Are there any improvements needed to the definition of eligible incumbent generators, including exclusions for energy storage?
    3. What changes, if any, would you suggest to the definition of “existing transmission system with approved upgrades,” and why?
    4. Should the payout cover only the negative congestion component of LMP, or also include compensation for losses? Please explain.
    5. Do you see opportunities to improve how shortfalls in incumbent transition payments are funded by load, and how excess collections are returned to load?
    6. What are the potential benefits and challenges of incumbent volume allocations being non-tradeable? What refinements do you recommend, and why?
    7. What additional information is required?
    Submit Feedback
Page last updated: 15 Oct 2025, 02:10 PM