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    View all stakeholder engagements

    Bulk and Regional Tariff Design

    Notice: Important clarification on rate impacts

    The AESO wants to thank stakeholders for their ongoing involvement in the Bulk and Regional Tariff Design Stakeholder Engagement work. Your participation to date has been both insightful and informative and has helped the AESO to better understand your perspectives as we advance our bulk and regional rate design.

    The AESO recognizes that the concept of bookends, shared at our Sept. 24, 2020 session, and associated rate impacts has created much angst and concern among certain stakeholders. We want to take this opportunity to clarify that it has never been the AESO’s intent to move forward with a one-time +100 or +130 per cent rate increase to broad groups of customers in our bulk and regional rate design development. We are committed to look for rate design and mitigation options that will provide a transition path to phase in changes and provide customers the opportunity to respond to the new rate design.

    For additional details, please see the AESO letter here.

    Introduction and background

    The AESO is currently reviewing the effectiveness and efficiency of the current bulk and regional rate design, which recovers system costs from consumers, to ensure that the ISO tariff appropriately and fairly recovers the sunk costs of the current system and sends efficient price signals to guide investment and electricity consumption decisions. Specifically, the AESO is considering the monthly coincident peak (12-CP) bulk cost recovery methodology. The treatment of energy storage in the ISO tariff is also in scope for this initiative, as the chosen path for treatment can have interactions with rates for system cost recovery.

    The AESO has been engaging with stakeholders since early 2018 on bulk and regional rates to understand and analyze the issue of recovering sunk transmission costs through the 12-CP mechanism as directed by the Alberta Utilities Commission ("Commission") in the June 29, 2018 Ruling in Proceeding 22942: AESO 2018 ISO Tariff Application.

    In scope for this engagement

    The following topics are in scope for the Bulk and Regional Tariff Design engagement sessions:

    • Rate design for bulk and regional charges (calculation)
    • Tariff treatment of storage
    • Reduction of associated regulatory requirements (red tape reduction), where applicable

    Out-of-scope for this engagement

    The following topics are out-of-scope and will not be discussed as part of the Bulk and Regional Tariff Design engagement sessions:

    • Participant-Related Costs for DFOs (Substation Fraction) and DFO Cost Flow-Through
    • Rates Update Applications
    • Other 2018 GTA Decision and Corresponding Compliance Filing Items

    Revised stakeholder engagement and filing schedule

    • Session 1<br>Mar. 13, 2020

       Session objectives

      • Present rate design options for bulk and regional cost recovery with rate objectives assessment
      • Provide rate design analysis tools
      • Review, respond to clarifying questions and collect initial input on options
    • Session 2<br>Sept. 24, 2020

      Session objectives

      • Review and gain acceptance on process and approach to complete a rate design
      • Understand current state rate design
      • Reconfirm tariff rate design objectives and balance of trade-offs
      • Understand rate design bookends
      • Identify initial implications of rate design bookends
      • Understand energy storage treatment options and considerations
      • Provide technical clarity around rate design bookends
    • Tech. Session<br>Oct. 14, 2020

      Session objectives

      • Ensure stakeholders understand the mechanics of the rate bookends;
      • Enable stakeholders to evaluate the impacts of the rate bookends on their sites;
      • Assist stakeholders in assessing the materiality of changes to their invoices; and
      • Ensure stakeholders are equipped to present and/or understand rate design options at the Oct. 22, 2020 stakeholder session
    • Session 3<br>Nov. 5, 2020

      Session objectives

      • Stakeholders to present and discuss alternative rate design options, including energy storage options and implications
      • Understand which rate design options stakeholders support and why
    • Session 4 <br>Dec. 10, 2020

      Session objectives

      • Understand common themes across stakeholder rate design proposals and the AESO rate design bookends
      • Understand areas of agreement and disagreement and why
      • Introduce mitigation conversation to foster/build understanding 
    • Session 5<br>Feb. 25, 2021

      Session objective

      • Present preferred rate design, including energy storage treatment, to stakeholders
      • Discuss and evaluate mitigation options
      • Present bill impact summary and assumptions
      • Provide Bill Impact Tool
      • Begin to discuss implementation considerations
    • Tech. Session<br>March 2021

      Session objective

      • Provide information to stakeholders about how to use the Bill Impact Tool and respond to stakeholder questions
    • Session 6<br>April 15, 2021

      Session objectives

      • Present preferred mitigation path to stakeholders
      • Present and collect feedback on the emerging application (to be filed by June 2021)
      • Share and discuss the implications of the rate design proposal and mitigations
      • Understand outstanding stakeholder concerns

    For information on the Tariff Design Advisory Group (TDAG) which was disbanded in January 2020 please click here.

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