Important Dates & Materials

September 14 | Hybrid Information Session registration

Purpose

To engage with market participants to build understanding of Security-Constrained Economic Dispatch (SCED) as the foundation of Locational Marginal Pricing (LMP) and provide opportunities for discussion and feedback.

Background Information

LMP is a key element of the Restructured Energy Market (REM) design. While implemented in other electricity markets, this is a new concept for the Alberta electricity market.

LMPs have three basic components: the energy price component represented by the Reference Bus Price, the congestion component, and the loss component. These components allow the price to vary by location during periods of transmission congestion, reflecting the cost to deliver the next megawatt of energy at different points on the grid. In general, LMPs facilitate the efficient use of the transmission system and provide a locational price signal to guide investment. The AESO intends to support industry readiness by sharing simulated historical LMP analysis to provide greater transparency and modelling learnings.

View additional information covered during the REM Technical Design engagements (look in the REM Design Finalization Data and Modelling folder under 2025 AESO Materials on the right-hand side).