Internal Demand Rates
Important Materials & Dates
Nov. 27 | Materials posted
- Cost of Service Study stakeholder presentation
- Benefit of Service Study stakeholder presentation
Nov. 17 | Materials posted
- AESO Cover Letter - Interim Draft Study Reports
- Cost of Service Studies Executive Summary
- Cost of Service Studies Interim Draft Report
- Benefit of Service Study Interim Draft Report
- Stakeholder feedback questions for Cost of Service Studies (will be open Dec. 5, scroll down to view)
- Stakeholder feedback questions for Benefit of Service Study (will be open Dec. 10, scroll down to view)
Dec. 4&5 | Cost of Service Study Hybrid Stakeholder Session Registration (two half-days)
Dec. 10 | Benefit of Service Study Hybrid Stakeholder Session Registration
- Please request to attend in-person by Dec. 2, 2025
Jan. 21, 2026 | Stakeholder feedback on Cost and Benefit of Service studies due)
Purpose & Scope
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.
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
Important Materials & Dates
Nov. 27 | Materials posted
- Cost of Service Study stakeholder presentation
- Benefit of Service Study stakeholder presentation
Nov. 17 | Materials posted
- AESO Cover Letter - Interim Draft Study Reports
- Cost of Service Studies Executive Summary
- Cost of Service Studies Interim Draft Report
- Benefit of Service Study Interim Draft Report
- Stakeholder feedback questions for Cost of Service Studies (will be open Dec. 5, scroll down to view)
- Stakeholder feedback questions for Benefit of Service Study (will be open Dec. 10, scroll down to view)
Dec. 4&5 | Cost of Service Study Hybrid Stakeholder Session Registration (two half-days)
Dec. 10 | Benefit of Service Study Hybrid Stakeholder Session Registration
- Please request to attend in-person by Dec. 2, 2025
Jan. 21, 2026 | Stakeholder feedback on Cost and Benefit of Service studies due)
Purpose & Scope
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.
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
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Stakeholder Updates
Stakeholder Update | October 15, 2025
We will share the following materials with stakeholder mid-November (approximately Nov. 17) to allow stakeholders time to review prior to engaging in the next phases of this workstream:- Report 1: Embedded cost-of-service study (COSS) + Marginal COSS + Performance Review of existing rates
- Report 2: Benefit of Service Study
- Supporting Data
- Feedback questions on the draft reports
Save the dates:
*These dates are tentative and being shared for transparency and planning purposes. Confirmed dates will be communicated via the Stakeholder Newsletter or by updates to this page
Date Expected Activity Canceled Nov. 26 (1-2 hours)Stakeholder Q&A Session focused on the COSS Report
We have determined that a more efficient use of time is to change the Dec. 4 & 5 sessions to hybrid participation.Dec. 4 & 5 (1/2 days) Hybrid Sessions on Report 1 (ECOSS + MCOSS + Performance Review) Dec. 10 (1/2 day) Hybrid Session on Report 2 (Benefit of Service Study) Jan. 21, 2026 Stakeholder Deadline to provide feedback on Draft Reports End of Feb 2026 AESO to Publish Reports 1 and 2 Tentative Date
Week of March 16, 2026Stakeholder Rate Option Workshop 1 April 2026 What we heard:
- Long list of rate options
- AESO proposed short list of rate options shared with stakeholdersTentative Date
Week of May 11, 2026Stakeholder Rate Option Workshop 2 Scope of December stakeholder sessions (Dec. 4 & 5, 10):- Presentation on the methodologies, data, and results of the reports by the consultants that preformed the studies
- Opportunity for stakeholders to ask clarification questions on study methods, data, and results
- Questions related to rate options are out of scope, as this will be the topic of a subsequent phase in 2026
Scope of Rate Option Workshop 1 (March 18-19, 2026)
- Working session with stakeholders on scorecard refresh and the rate options that might address the rate design issues identified in Report 1
July 9, 2025 | Consultants Selected
Benefit of Service Study | 1-on-1 Confidential Interviews July- Aug, 2025
We have selected a consortium of consultants to complete the Benefit of Service (BoS) study. We are excited to announce that Boost Energy Ventures, Energex Partners, and Power Team Consulting (BoS Consortium) will be completing this first of a kind study for Alberta’s electricity industry.
The BoS Consortium will perform a quantitative and qualitative analysis to help answer: “What is the value of service from transmission connectivity in Alberta?”
They will study 13 archetypes in grid-connected and off-grid configurations. View the summary of their methodology and archetypes.
They will be directly engaging with electricity consumers to gather information on:
- the value of grid service,
- the impacts to consumers when it is interrupted (value of lost load), and
- how they make decisions related to their electricity needs.
Cost of Service and Performance Review of Existing Rates Studies
We have selected FTI Consulting (FTI) to support the Cost of Service studies and performance review of existing rates. We expect this work will be completed by November 2025. FTI will also support options development, bill impact analysis, mitigation measures, and application preparation in 2026.
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Stakeholder Sessions
April 30, 2025 | Information Session
The AESO hosted 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
- Q&A
Materials
Are available under AESO Materials (stakeholder presentations)
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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.
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Level of Engagement
Consult: Gather input and feedback from stakeholders
Refer to the AESO’s Engagement Framework for our approach to engagement.
ISO Tariff Hub
Who's Listening
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Senior Tariff Design Analyst
AESO Materials
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Benefit of Service Study
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Benefit of Service Study stakeholder presentation (Dec. 10 2025) (Posted 27NOV2025) (5.16 MB) (pdf)
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AESO Cover Letter - Interim Draft Study Reports (Posted 17NOV2025)
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Benefit of Service Study - Interim Draft Report (Posted 17NOV2025) (3.46 MB) (pdf)
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Benefit of Service Study Announcement (Posted 9JUL2025) (121 KB) (pdf)
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AESO BoS Study - Methodology (Posted 9JUL2025) (1.23 MB) (pdf)
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Internal Demand Rates Preliminary Consultant Statements of Work (Posted 14Mar2025) (150 KB) (pdf)
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Cost of Service Study
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Cost of Service Study stakeholder presentation (Dec. 4-5 2025) (Posted 27NOV2025) (7.73 MB) (pdf)
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AESO Cover Letter - Interim Draft Study Reports (Posted 17NOV2025) (224 KB) (pdf)
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Cost of Service Studies - Executive Summary (Posted 17NOV2025) (421 KB) (pdf)
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Cost of Service Studies - Interim Draft Report (Posted 17NOV2025) (10.2 MB) (pdf)
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Cost of Service Study Announcement (Posted 9JUL2025) (304 KB) (pdf)
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Internal Demand Rates Preliminary Consultant Statements of Work (Posted 14Mar2025) (150 KB) (pdf)
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Phase 1 | Hypothesis Statements
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Presentations
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Engagement Schedule (Posted 5Mar2025) (166 KB) (jpg)
Lifecycle
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Phase 1 | Mar. 5 - May 29, 2025
Internal Demand Rates has finished this stageRoadmap, 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.
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Phase 2 | June - Oct. 2025
Internal Demand Rates has finished this stageData gathering, analysis & hypothesis testing: The AESO will collect and clean data, conduct analysis, and test the hypotheses generated in Phase 1.
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Phase 3.1 | Nov. 2025 - May 2026
Internal Demand Rates is currently at this stageRate DTS performance evaluation and options identification: Receive stakeholder feedback on Phase 2 analysis, refine problem statements, and identify options to address the problems.
Save the Dates:
- Dec. 4 & 5 (1/2 days) - Report 1 Information Session (ECOSS + MCOSS + Performance Review)
- Dec. 10 (1/2 day) - Report 2 Information Session (Benefit of Service Study)
- Jan. 21, 2026 - Stakeholder deadline to provide feedback on the draft reports
- End of Feb, 2026 - AESO to publish finalized Reports 1 and 2
- Mid-April, 2026 - AESO long list + short list of rate options shared with stakeholders
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Phase 3.2 | TBD
this is an upcoming stage for Internal Demand RatesRate DOS performance evaluation pursuant to AUC Decision 28989-D02-2024
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Phase 4 | April - July 2026
this is an upcoming stage for Internal Demand RatesOptions 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.
Tentative Dates:
- End of April 2026 - Deadline for stakeholders' proposed rate options
- Week of May 11, 2026 - Stakeholder engagement sessions (AESO + stakeholder presentations on rate options)
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AUC Application | Aug. 2026 - Jan. 2027
this is an upcoming stage for Internal Demand RatesApplication preparation and submission: The AESO will draft and file its ISO tariff application with the Alberta Utilities Commission (AUC) by January 31, 2027.
Key Dates
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November 2025
