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Internal Demand Rates

Important Dates

April 3, 2025 | Stakeholder Feedback due

March 14, 2025 | Preliminary Consultant Statements of Work posted

Purpose

To determine how current rates for demand are (or are not) fulfilling performance expectations now or in the future and, with robust stakeholder input, design solutions that address prioritized deficiencies.

Scope

The following topics are in scope for this engagement:

  • Rate class review (including self-supply, large load, and non-firm rates)
  • Rate Demand Transmission Service (DTS) performance and potential redesign
  • Rate Demand Opportunity Service (DOS) performance review

Although there will be overlap and interdependencies, the below topics are out of scope and will either be covered in other workstreams, or are being discussed as part of standalone engagements:

  • Point of Delivery (POD) Charges – classification, allocation, and rate design
  • Ancillary Service products, services, and associated fees
  • Optimal Transmission Planning (OTP)
  • Restructured Energy Market (REM)

Engagement Schedule


Background

The Electric Utilities Act (EUA) requires the AESO to submit a tariff for AUC approval. The AUC has directed the AESO to refile its Bulk & Regional Tariff Design by January 31, 2027. Parties are encouraged to review documents from AUC Proceeding 26911, the last Bulk & regional Tariff application, with a particular emphasis on the Commission's decision and parties' evidentiary submissions.

With respect to Rate DOS, parties are encouraged to review Decision 28989-D02-2024.

Given recent amendments to the EUA, anticipated updates to the government’s Transmission Regulation, and the ongoing grid transformation, a fulsome review of Rate DTS is necessary. The AESO expects that revisions to the tariff will need to incorporate these new policy directions, recover the AESO's revenue requirements, and adhere to other rate design principles and strategic objectives to the greatest extent possible.

Important Dates

April 3, 2025 | Stakeholder Feedback due

March 14, 2025 | Preliminary Consultant Statements of Work posted

Purpose

To determine how current rates for demand are (or are not) fulfilling performance expectations now or in the future and, with robust stakeholder input, design solutions that address prioritized deficiencies.

Scope

The following topics are in scope for this engagement:

  • Rate class review (including self-supply, large load, and non-firm rates)
  • Rate Demand Transmission Service (DTS) performance and potential redesign
  • Rate Demand Opportunity Service (DOS) performance review

Although there will be overlap and interdependencies, the below topics are out of scope and will either be covered in other workstreams, or are being discussed as part of standalone engagements:

  • Point of Delivery (POD) Charges – classification, allocation, and rate design
  • Ancillary Service products, services, and associated fees
  • Optimal Transmission Planning (OTP)
  • Restructured Energy Market (REM)

Engagement Schedule


Background

The Electric Utilities Act (EUA) requires the AESO to submit a tariff for AUC approval. The AUC has directed the AESO to refile its Bulk & Regional Tariff Design by January 31, 2027. Parties are encouraged to review documents from AUC Proceeding 26911, the last Bulk & regional Tariff application, with a particular emphasis on the Commission's decision and parties' evidentiary submissions.

With respect to Rate DOS, parties are encouraged to review Decision 28989-D02-2024.

Given recent amendments to the EUA, anticipated updates to the government’s Transmission Regulation, and the ongoing grid transformation, a fulsome review of Rate DTS is necessary. The AESO expects that revisions to the tariff will need to incorporate these new policy directions, recover the AESO's revenue requirements, and adhere to other rate design principles and strategic objectives to the greatest extent possible.

  • Stakeholder Feedback | March 5 - April 3, 2025

    Purpose

    To define the key problem areas of the current Rate DTS, establish evaluation criteria and generate hypotheses that will guide data gathering & analysis in subsequent phases

    Instructions

    1. To submit your responses, you will need to be registered and signed in on the AESO Engage platform. 
    2. Please click on the "Submit Stakeholder Feedback" box below to begin the survey and provide your specific comments. 
    3. Please submit one completed survey per organization. 
    4. All responses will be shared on AESO Engage, unless otherwise noted. 
    5. Responses are due on or before April 3, 2025.

    Stakeholder Questions

    Feedback on Current Rate Design

    1. In your view, what are the current goals of Rate DTS? 

    2. What problem(s)/issue(s) do you want addressed in rate redesign for internal demand rates? 

    3. What goals are not being met in the current rate design? 

    4. Where is there tension or conflict between goals in the current rate design? 

    Scorecard Evaluation Criteria

    1. The AESO intends to take a “scorecard” approach to evaluating the performance of the current rates and comparing alternatives. Please select the criteria that should be included in the evaluation. Select all that apply.

    • Recovery of total revenue requirement
    • Efficient price signals (for transmission-connected customers)
    • Ability for distribution utilities to flow through price signals
    • Stability and predictability
    • Simplicity
    • Innovation and cost savings
    • Fair, objective, and equitable (minimizing inter-customer subsidies)
    • Flexibility and durability

    2. For every criteria you did not select, please explain.

    3. Are there any other rate design principles or strategic objectives that should be included? Please explain.

    4. Any additional comments?

    Internal Demand Rates Studies

    We have shared the Preliminary Consultant Statements of Work to assist stakeholders with responding to these questions.

    1. If the AESO hired one or more consultants to support some or all aspects of any of the following proposed studies, does your organization have a view on which consultants we should (or should not) seek proposals from? (To allow for transparent feedback, these answers will be kept confidential)

    Proposed studies: 

    • Cost of Service Study
    • Benefit of Service Study
    • Current Rate DTS performance

    2. Any additional comments on proposed studies. (These answers will be shared publicly)

    Submit Your Feedback Here
Page last updated: 14 Mar 2025, 10:42 AM