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Interim Market Power Mitigation

Key Dates

June 19, 2024 | June Information Session video recording posted

Application Filing | Expedited Approval Received

On June 14, 2024, the AESO filed an application for expedited approval of the Interim Market Power Mitigation Rules pursuant to Section 20.6 of the Electric Utilities Act (Act) with the Alberta Utilities Commission (AUC).

On June 19, 2024, the AUC issued Order 29093-D01-2024 approving the AESO’s Interim Market Power Mitigation Rules under Section 20.6(3) of the Act. Pursuant to Section 20.6(4) of the Act, subsection 2 of Section 206.2 of the ISO rules takes effect June 21, 2024 and the balance of the Interim Market Power Mitigation Rules take effect July 1, 2024.

The application, all associated appendices and Order 29093-D01-2024 can be viewed under Proceeding 29093 on the eFiling section of the AUC website. Click here to create a new account or log in to eFiling.

Please contact rules_comments@aeso.ca with any questions.

Purpose

To share with stakeholders the AESO’s plan and design to implement changes regarding the interim market power mitigation. The AESO will share key dates, relevant design details, ISO rule amendment information and other key training materials. A method for stakeholders to submit questions will also be made available. This engagement will be applicable to market participants directly or indirectly impacted by the interim market changes, and any other interested stakeholders.

Background

In March 2024 the Alberta government announced regulatory changes regarding economic withholding in the energy market, based on recommendations it received from the Alberta Electric System Operator and the Alberta Market Surveillance Administrator. Two new regulations, the Market Power Mitigation Regulation and the Supply Cushion Regulation, and ISO rule amendments will enable the policy changes. The first regulation implements a secondary offer cap on thermal offers of market participants with a five per cent or greater market share once a certain net revenue threshold has been reached in a month. The second regulation requires the AESO to direct long lead time assets online when the AESO’s supply cushion is forecasted to be below the specified threshold. The AESO will also be making ISO rule amendments to support the changes.

These changes are being implemented to address affordability and market power concerns which balance the mitigation of excessive exercise of market power with minimal interference with market functioning while also ensuring that generators are able to make a reasonable rate of return.

The measures are interim and are to be replaced with a different mitigation approach, which is to be consulted on in the final Restructured Energy Market design.

The rule changes to implement the interim market power mitigation will come into effect by July 1, 2024.

Key Dates

June 19, 2024 | June Information Session video recording posted

Application Filing | Expedited Approval Received

On June 14, 2024, the AESO filed an application for expedited approval of the Interim Market Power Mitigation Rules pursuant to Section 20.6 of the Electric Utilities Act (Act) with the Alberta Utilities Commission (AUC).

On June 19, 2024, the AUC issued Order 29093-D01-2024 approving the AESO’s Interim Market Power Mitigation Rules under Section 20.6(3) of the Act. Pursuant to Section 20.6(4) of the Act, subsection 2 of Section 206.2 of the ISO rules takes effect June 21, 2024 and the balance of the Interim Market Power Mitigation Rules take effect July 1, 2024.

The application, all associated appendices and Order 29093-D01-2024 can be viewed under Proceeding 29093 on the eFiling section of the AUC website. Click here to create a new account or log in to eFiling.

Please contact rules_comments@aeso.ca with any questions.

Purpose

To share with stakeholders the AESO’s plan and design to implement changes regarding the interim market power mitigation. The AESO will share key dates, relevant design details, ISO rule amendment information and other key training materials. A method for stakeholders to submit questions will also be made available. This engagement will be applicable to market participants directly or indirectly impacted by the interim market changes, and any other interested stakeholders.

Background

In March 2024 the Alberta government announced regulatory changes regarding economic withholding in the energy market, based on recommendations it received from the Alberta Electric System Operator and the Alberta Market Surveillance Administrator. Two new regulations, the Market Power Mitigation Regulation and the Supply Cushion Regulation, and ISO rule amendments will enable the policy changes. The first regulation implements a secondary offer cap on thermal offers of market participants with a five per cent or greater market share once a certain net revenue threshold has been reached in a month. The second regulation requires the AESO to direct long lead time assets online when the AESO’s supply cushion is forecasted to be below the specified threshold. The AESO will also be making ISO rule amendments to support the changes.

These changes are being implemented to address affordability and market power concerns which balance the mitigation of excessive exercise of market power with minimal interference with market functioning while also ensuring that generators are able to make a reasonable rate of return.

The measures are interim and are to be replaced with a different mitigation approach, which is to be consulted on in the final Restructured Energy Market design.

The rule changes to implement the interim market power mitigation will come into effect by July 1, 2024.

  • CLOSED: This survey has concluded.

    Written Consultation on Proposed New and Amended ISO Rules | May 21 - 31, 2024

    We value your input and would like to ask all interested stakeholders to provide their feedback on the proposed new and amended ISO rules for Market Power Mitigation Regulation and Supply Cushion Regulation, which the AESO will file on an expedited basis. The feedback period will be open until May 31, 2024, and responses will be shared on AESO Engage. The AESO will consider all feedback received; however, because the Proposed Interim Market Mitigation ISO Rules must be implemented by July 1, 2024, the AESO may not have an opportunity to respond to this feedback. Thank you in advance for providing your comments.

    Instructions

    1. Please respond to the questions and provide your specific comments.
    2. Only one completed comment matrix will be accepted per organization.
    3. To upload your completed comment matrix:
      • You will need to be registered and signed in on the AESO Engage platform.
      • Please click on the "Complete Stakeholder Feedback" box below to upload your completed comment matrix.
    4. The AESO will share all feedback received on AESO Engage  
    5. Responses due on or before May 31, 2024.

    Stakeholder Comment Matrix

    View the AESO Stakeholder Comment Matrix here, or in the AESO Materials section on the right side of the page.

  • CLOSED: This consultation has concluded.

    Written Consultation on Proposed Templates to Support s. 206.2 of the ISO Rules | May 24 - June 3, 2024

    Purpose

    In the Letter of Notice accompanying the Proposed Interim Market Mitigation ISO Rules posted for Stakeholder comments on May 21, 2024, the AESO stated that it would post the Templates supporting proposed Section 206.2 for Stakeholder comment. The AESO is now providing Stakeholders with a copy of its two proposed Templates:

    We value your input and would like to ask all interested stakeholders to provide their feedback on the two new proposed templates to support proposed Section 206.2, which facilitates the requirements and objectives of the Supply Cushion Regulation. The Templates will be appendices to the Information Document for proposed Section 206.2. The AESO will take all feedback received into consideration, and will provide a summary of feedback received on AESO Engage. 

    Thank you in advance for providing your comments. 

    Instructions

    1. Please respond to the questions and provide your specific comments.
    2. Only one completed comment matrix will be accepted per organization.
    3. To upload your completed comment matrix:
      • You will need to be registered and signed in on the AESO Engage platform.
      • Please click on the "Complete Stakeholder Feedback" box below to provide your comments.
    4. The AESO will share a summary of feedback received on AESO Engage. 
    5. Responses due on or before June 3, 2024.

    Stakeholder Survey Questions

    1. Do you have any comments or wish to raise any concerns with the proposed Estimated Costs Parameters and Physical Constraints Template?
    2. Do you have any comments or wish to raise any concerns with the proposed Actual Incremental Costs Template?
Page last updated: 29 Jul 2024, 01:06 PM