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    Adjustment for load on the margin

    Engagement outcomes

    When the decision was made to not progress sub-hourly settlement in 2020 any further, market participants identified that ALM may provide value for loads and should be explored at a later time. The AESO engaged stakeholders on the implementation of ALM in April 2021; and received stakeholder feedback on the AESO’s draft recommendations, which was used to determine the final recommendations. The AESO then released a stakeholder update that outlined the key ALM design concepts that will be implemented, prior to proceeding with ISO rule consultation. Any recommended ISO rule changes and any further engagement on ALM will be done in conjunction with the ongoing Energy Storage Rule Amendment work.

    To learn more about the Energy Storage Rule Amendment initiative, including stakeholder engagement sessions that are planned for fall 2021, please click here.

    This engagement concluded in June 2021.

    Introduction and purpose

    During the sub-hourly settlement consultation in 2020 market participants identified that adjustment for load on the margin (ALM) may provide value for loads and should be explored.

    The AESO continues to believe there is merit in exploring ALM.  The AESO would like to engage stakeholders on the implementation of ALM; and receive stakeholder feedback on the AESO’s draft recommendation.  ALM would allow for the dynamic benefits of sub-hourly settlement to be realized with a much lower implementation cost, would incent load and energy storage to bid into the market, and allow for comparable treatment to generators who receive payment for suppliers on the margin. 

    More information on the sub-hourly settlement engagement can be found here. Details on the ALM  materials to be presented in the April 13th session can be found in the session 3 materials.

    If you have any questions, please contact stakeholder.relations@aeso.ca and subscribe to our stakeholder newsletter for updates.