The AESO is reviewing the responsibilities of both market participants and the AESO when connecting to the Alberta Interconnected Electric System (AIES), including how costs are allocated at the time of connection. This engagement will also address:
How connection alternatives are selected and their impact on costs;
Substation fraction review;
Billing and contracting for multiple connection points;
Post-energization obligations, including potential stranded costs; and
Financial obligations of the market participant, transmission facility owners (TFOs) and ISO for connection projects.
These tariff provisions are primarily found in Section 4 of the ISO tariff, Classification and Allocation of Connection Project Costs , Section 5, Changes to System Access Service, and Section 6, Financial Obligations for Connection Projects, of the ISO tariff.
Scope
Summarize the history of connection costs allocation and ISO investment policy in Alberta
Explain the current ISO tariff and policy, including technical details
Identify what is working and not working from AESO perspective
Gather stakeholder feedback on what is working and not working
Develop objectives for a revised policy
Out of Scope
These topics will be addressed in other workstreams:
Ancillary Services
Other priority tariff work; and
Optimized Transmission Planning (OTP)
Note: OTP will influence understanding of drivers for new or upgraded transmission facilities and related price signals to stakeholders.
The AESO is reviewing the responsibilities of both market participants and the AESO when connecting to the Alberta Interconnected Electric System (AIES), including how costs are allocated at the time of connection. This engagement will also address:
How connection alternatives are selected and their impact on costs;
Substation fraction review;
Billing and contracting for multiple connection points;
Post-energization obligations, including potential stranded costs; and
Financial obligations of the market participant, transmission facility owners (TFOs) and ISO for connection projects.
These tariff provisions are primarily found in Section 4 of the ISO tariff, Classification and Allocation of Connection Project Costs , Section 5, Changes to System Access Service, and Section 6, Financial Obligations for Connection Projects, of the ISO tariff.
Scope
Summarize the history of connection costs allocation and ISO investment policy in Alberta
Explain the current ISO tariff and policy, including technical details
Identify what is working and not working from AESO perspective
Gather stakeholder feedback on what is working and not working
Develop objectives for a revised policy
Out of Scope
These topics will be addressed in other workstreams:
Ancillary Services
Other priority tariff work; and
Optimized Transmission Planning (OTP)
Note: OTP will influence understanding of drivers for new or upgraded transmission facilities and related price signals to stakeholders.
Tariff Connection Obligations has finished this stage
Problem identification & preparation for working group (materials, examples, training, etc.): One-on-one information gathering conversations with interested stakeholders. High-level summaries will be shared with the public.
Phase 1.1 | June - Oct. 2025
Tariff Connection Obligations has finished this stage
AESO development of materials: We will develop and research materials, models, jurisdictional review, examples and training for next engagement phase
Phase 2 | Oct. 2025 - Jan. 2026
Tariff Connection Obligations is currently at this stage
Preparation for next phase of workstream by engaging broad stakeholder group:Provide information, background and workstream materials to all stakeholders and seek stakeholder feedback on:
Structure of a working group
Scorecard/objectives of workstream
Expectations and deliverables of working group
Phase 3 | Jan. - Dec. 2026
this is an upcoming stage for Tariff Connection Obligations
Working group connection costs options: Kick-off working group to develop potential options & assess against scorecard/objectives. Overlap with Phase 4 to ensure clear messaging on how the application will be framed.
Phase 4 | Q3, 2026 - Q1, 2027
this is an upcoming stage for Tariff Connection Obligations
Pre-application/application preparation: AESO will release Terms & Conditions blacklines and request stakeholder feedback prior to drafting its AUC application. Ongoing check-ins and updates will continue with the Phase 3 overlap to ensure clear communication on the preferred options