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.
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.
The AESO will be hosting a virtual stakeholder session on April 30 from 9:30 a.m. to 11: 30 a.m. to provide stakeholders with an opportunity to ask questions and ensure alignment prior to commissioning studies and seeking the next round of written feedback.
Purpose
Summarize and asses the AESO's understanding of stakeholder feedback received
Seek input on the AESO's draft issue prioritization
Roadmap, Problem Statement, Evaluation Criteria (Scorecard), and Hypothesis Generation: Introduce the 5-phase workstream process at the ISO Tariff Redesign Kick-off Information Session, define the key problem areas of the current Rate DTS, establish evaluation criteria of the current and alternative rate designs, and generate hypotheses that will guide data gathering, analysis in subsequent phases.
Phase 2 | June - Oct. 2025
this is an upcoming stage for Internal Demand Rates
Data gathering, analysis & hypothesis testing: The AESO will collect and clean data, conduct analysis, and test the hypotheses generated in Phase 1.
Phase 3.1 | Nov. 2025 - Jan. 2026
this is an upcoming stage for Internal Demand Rates
Rate DTS performance evaluation and options identification: Receive stakeholder feedback on Phase 2 analysis, refine problem statements, and identify options to address the problems.
Phase 3.2 | TBD
this is an upcoming stage for Internal Demand Rates
Rate DOS performance evaluation pursuant to AUC Decision 28989-D02-2024
Phase 4 | Feb. - July 2026
this is an upcoming stage for Internal Demand Rates
Options analysis: Leverage the previously collect data and evaluation criteria, conduct counterfactual analysis on the identified options. Identify the AESO’s preferred rate design, and one to two alternatives.
AUC Application | Aug. 2026 - Jan. 2027
this is an upcoming stage for Internal Demand Rates
Application preparation and submission: The AESO will draft and file its ISO tariff application with the Alberta Utilities Commission (AUC) by January 31, 2027.
