Financial Transmission Rights

Important Dates & Materials

Feb. 27 - Mar. 20 | Stakeholder Feedback Period (Feedback Form)

Feb. 25 - 26 | Hybrid Stakeholder Session summary and presentation (updated Feb. 27 - Brattle tables on pages 35 and 56)

Feb. 4 | Information Session presentation and session recording

Jan. 29 | Brattle Report on Enduring FTR Models for Alberta (updated Mar. 4 - Table 21 on page 71)

Purpose

To engage with stakeholders to explore an FTR market framework that will provide appropriate congestion risk management in the context of the Restructured Energy Market (REM) and Optimal Transmission Planning (OTP). This consultation will identify the different structures of an FTR market framework and assess the trade-offs between each framework to develop a recommended path forward.

Background Information

Financial Transmission Right (FTR) markets allow for value creation through the trade of rights to congestion rent in a future period. The exchange of FTRs takes place between FTR Buyers (those purchasing the stream of congestion rent) and FTR Sellers (those selling the stream of congestion rent). FTR markets are financial: they do not restrict or influence the physical dispatch of power from physical assets in the electricity market.

The risk of congestion and the potential need for tools to manage that risk arises from three related factors:

  • Planning a system that allows for congestion: the Optimal Transmission Plan (OTP) leads to a system that values congestion in terms of economic efficiency, or impact on total surplus. This optimal level of congestion manifests in the real-time energy market as price separation.
  • Price separation from Locational Marginal Pricing (LMP): Changes from the Restructured Energy Market (REM) allow for the real-time price of energy to reflect the impact of congestion/constraints on the system. This difference in price paid to consume energy and price paid to produce energy is calculated as congestion rent.
  • An FTR market could improve overall market efficiency: The exchange of FTRs enables efficient risk allocation when the agreed upon price benefits both the seller and buyer of the FTR.

Important Dates & Materials

Feb. 27 - Mar. 20 | Stakeholder Feedback Period (Feedback Form)

Feb. 25 - 26 | Hybrid Stakeholder Session summary and presentation (updated Feb. 27 - Brattle tables on pages 35 and 56)

Feb. 4 | Information Session presentation and session recording

Jan. 29 | Brattle Report on Enduring FTR Models for Alberta (updated Mar. 4 - Table 21 on page 71)

Purpose

To engage with stakeholders to explore an FTR market framework that will provide appropriate congestion risk management in the context of the Restructured Energy Market (REM) and Optimal Transmission Planning (OTP). This consultation will identify the different structures of an FTR market framework and assess the trade-offs between each framework to develop a recommended path forward.

Background Information

Financial Transmission Right (FTR) markets allow for value creation through the trade of rights to congestion rent in a future period. The exchange of FTRs takes place between FTR Buyers (those purchasing the stream of congestion rent) and FTR Sellers (those selling the stream of congestion rent). FTR markets are financial: they do not restrict or influence the physical dispatch of power from physical assets in the electricity market.

The risk of congestion and the potential need for tools to manage that risk arises from three related factors:

  • Planning a system that allows for congestion: the Optimal Transmission Plan (OTP) leads to a system that values congestion in terms of economic efficiency, or impact on total surplus. This optimal level of congestion manifests in the real-time energy market as price separation.
  • Price separation from Locational Marginal Pricing (LMP): Changes from the Restructured Energy Market (REM) allow for the real-time price of energy to reflect the impact of congestion/constraints on the system. This difference in price paid to consume energy and price paid to produce energy is calculated as congestion rent.
  • An FTR market could improve overall market efficiency: The exchange of FTRs enables efficient risk allocation when the agreed upon price benefits both the seller and buyer of the FTR.

  • Phase 1 - Stakeholder Feedback | Feb. 27 to March 20, 2026

    Stakeholder Feedback: Enduring Financial Transmission Rights (FTRs)

    Comment Period: February 27 – March 20, 2026

    We value stakeholder input and invite stakeholders to provide their feedback on the materials presented on Financial Transmission Rights (FTRs) via the following stakeholder feedback form by March 20, at 4:00 p.m. MT. Please be as specific as possible with your responses. Thank you for your input.

    Purpose

    Following our sessions on February 25 – 26, we are inviting written comments from stakeholders that will inform the next steps, including Phase 2 of the engagement.

    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:
    5. You will need to be registered and signed in on the AESO Engage platform; and
    6. You will need to be on the Financial Transmission Rights page (https://aesoengage.aeso.ca/financial-transmission-rights), which can be found on the AESO website at www.aeso.ca and follow the path: AESO Engage (found on very top navigation bar) > Market > Financial Transmission Rights; and
    7. Click on the "Submit Stakeholder Feedback" box below to upload your completed feedback form.

    All responses are due by March 20, 2026, at 4:00 p.m. MT. and will be shared on AESO Engage in their original format. If you have any questions, please email stakeholder.relations@aeso.ca 

    Questions

    FTR Market Purpose

    1. What is your preferred FTR framework? Please provide your rationale.

    2. In your opinion, what is the purpose of an FTR market?

    3. Including alternative or additional design objectives, which design objectives should be prioritized? Please provide your rationale. Refer to slide 21 of the Feb. 25 – 26 Stakeholder Session

    4. How does your preferred FTR framework meet the design objectives?

    FTR Market Roles

    5. What are the defined roles in your preferred FTR framework:

    a) Role of the ISO

    b) Role of other agencies/regulators

    6. Who are the market participants:

    a) Buyers

    b) Sellers

    7. How do financial players contribute or participate in this FTR framework? 

    Market Framework Considerations

    8. In your preferred FTR framework, are there protections for either Buyers or Sellers that need to be considered? 

    9. Who ultimately bears the congestion risk in your preferred FTR framework? 

    10. How do you view your company/organization benefitting from an FTR market?

    11. Are there any other feedback or considerations that you would like to flag for the AESO?

    Submit Feedback
Page last updated: 10 Mar 2026, 12:38 PM