Optimal Transmission Planning (OTP)

Important Materials & Deadlines

October 31 | OTP Framework Recommendation Paper Stakeholder Written Feedback Due

October 16 | OTP Framework Recommendation Virtual Q&A Session Posted

September 24 | OTP Framework Recommendation Paper Posted

Purpose and Objectives

  • We are committed to developing an Optimal Transmission Planning Framework through meaningful consultation with stakeholders
  • The proposed stakeholder engagement approach includes consultation sessions, written feedback cycles, and information sessions
  • The approach aims to:
    • Ensure meaningful stakeholder engagement before commencing regulatory processes
    • Develop and implement the new optimally planned transmission planning framework to align with government directives
    • Implement the Optimal Transmission Planning Framework in the 2027 Long-Term Transmission Plan (LTP)

OTP and TRP High-Level Engagement Schedule

Click on image to expand


Background

In the Minister of Affordability and Utilities (MAU or Minister) July 2024 letter, the AESO was directed to implement changes to its current transmission planning framework. More specifically, the MAU announced that it has decided to “move away from the current zero-congestion transmission planning standard to an optimally planned transmission planning standard.” The MAU indicated that it is committed to continued collaboration with the AESO as it moves “towards the implementation of a new market and transmission framework to better enable a reliable, affordable, and sustainable electricity system for all Albertans.”

Important Materials & Deadlines

October 31 | OTP Framework Recommendation Paper Stakeholder Written Feedback Due

October 16 | OTP Framework Recommendation Virtual Q&A Session Posted

September 24 | OTP Framework Recommendation Paper Posted

Purpose and Objectives

  • We are committed to developing an Optimal Transmission Planning Framework through meaningful consultation with stakeholders
  • The proposed stakeholder engagement approach includes consultation sessions, written feedback cycles, and information sessions
  • The approach aims to:
    • Ensure meaningful stakeholder engagement before commencing regulatory processes
    • Develop and implement the new optimally planned transmission planning framework to align with government directives
    • Implement the Optimal Transmission Planning Framework in the 2027 Long-Term Transmission Plan (LTP)

OTP and TRP High-Level Engagement Schedule

Click on image to expand


Background

In the Minister of Affordability and Utilities (MAU or Minister) July 2024 letter, the AESO was directed to implement changes to its current transmission planning framework. More specifically, the MAU announced that it has decided to “move away from the current zero-congestion transmission planning standard to an optimally planned transmission planning standard.” The MAU indicated that it is committed to continued collaboration with the AESO as it moves “towards the implementation of a new market and transmission framework to better enable a reliable, affordable, and sustainable electricity system for all Albertans.”

  • Stakeholder Updates

    October 9 | OTP Framework Recommendation Q&A Question Board Closes

    September 24 | OTP Framework Recommendation Paper Posted

    September 3, 2025 | OTP Design

    The OTP Framework Recommendation Paper will have an adjusted posting date and will be available for stakeholders later this month. An opportunity for stakeholders to provide their written feedback on the Framework Recommendation will also be open on AESO Engage. Please check back for additional details as they become available.

    July 15, 2025 | Direction Letter from Minister

    Today, the AESO received direction from the Minister of Affordability and Utilities regarding locational marginal pricing, transmission line loss cost recovery, and the transitionary treatment for incumbent generators. Learn more.

    July 17 | OTP & TRP Sprint 2 Summary Posted

    June 20 | OTP & TRP Sprint Week 2 Materials Posted

    March 26, 2025 | Information Session

    We will be holding a virtual Optimal Transmission (OTP) and Transmission Reinforcement Payment (TRP) Information Session on Tuesday, April 16 from 9:00 a.m. – 12:00 p.m., open to all interested stakeholders. Register to attend.

    We will answer questions and address the following:

    • OTP Framework Options Paper highlights
    • TRP objectives and foundation overview
    • OTP and TRP engagement plan details
    • Associated timelines and participation opportunities
    • Scope for upcoming OTP/TRP sprint sessions

    Feb. 19, 2025 | OTP Discussions within REM Design Finalization Week 1

    On the first day of the Restructured Energy Market (REM) Design Finalization Session (Week 1), the AESO will present an overview of the 2025 engagement activities across the REM, Optimal Transmission Planning (OTP) and Tariff engagements. If you are interested in attending virtually, please register here.

    Jan. 29, 2025 | OTP Practice in Other Jurisdictions

    We are reviewing how OTP is utilized globally. Although the OTP framework is new to Alberta, it has been practiced in other jurisdictions. If you are interested in learning more about how other jurisdictions approach optimal transmission planning, please see the attachment for links to jurisdictional examples and information. Additionally, we would like to hear from you on the questions provided below.

    1. Are there other jurisdictions with OTP practices that the AESO should further explore? If yes, please highlight specific element(s) of certain OTP practices you would like us to focus on, as well as the resulting benefits to an Alberta framework.
    2. Do you have any additional attachments or formatted versions of your responses that you would like to submit? If so, please submit here.

    Examples include:

    • Australian Energy Market Operator (AEMO)
    • California Independent System Operator (CAISO)
    • Electric Reliability Council of Texas (ERCOT)
    • European Network of Transmission System Operators for Electricity (ENTSO-E)
    • Midcontinent Independent System Operator (MISO)
    • New York Independent System Operator (NYISO)
    • Southwest Power Pool (SPP)

    Jan. 13, 2025 | Feedback on Engagement Process

    Following the closing of the initial written feedback consultation period, the AESO will review and consider the responses as we continue to progress details on the proposed stakeholder engagement process for a move towards an OTP Framework. Please view the Survey Responses Report.

    The AESO has summarized high-level themes from within the feedback responses, capturing what we heard from stakeholders:

    • Generally, stakeholders are supportive of the proposed engagement approach of inform, consult, and a written feedback mechanism, but more detail is needed to give fulsome feedback on the proposed engagement framework
    • Most commonly, Stakeholders have highlighted the importance of the proposed OTP engagement working alongside the REM and Tariff engagements. Stakeholders need to participate in all engagements and require time to prepare thoughtful feedback for other AESO engagements as well
    • Stakeholders have also highlighted:
      • A clear plan that includes the scope, milestones, time commitment, definitions, analysis, and a clear governance structure (including AUC approvals) is paramount
      • Stakeholders will be strained to meet the time commitments of all these initiatives, in addition to their regular obligations
      • Small organizations do not have the same resources to participate, and therefore, the consultations may be skewed towards participants with the greatest resources
      • The AESO should be mindful and flexible as decisions are made in one engagement; outcomes and results may affect other decisions made in previous engagements. I.e. the AESO should be open to revisiting decisions in REM if they do not align with the OTP direction (Tariff as well, once that engagement is underway)
      • Data and analytics will be crucial to the timeline; the AESO should prepare and share as much information as possible in advance
      • More detail is needed on incumbent rights and recognition of long-time investment in the system

    Watch for more information in Q1 on upcoming engagement opportunities.

    Thank you for your interest, participation, and contributions during the early stages of the proposed OTP Framework stakeholder engagements.

Page last updated: 31 Oct 2025, 04:38 PM