Interim Market Power Mitigation

Key Dates

June 11, 2024 | Virtual Information Session

May 21, 2024 | Materials posted

May 17, 2024 | Updated FAQ posted


Purpose

To share with stakeholders the AESO’s plan and design to implement changes regarding the interim market power mitigation. The AESO will share key dates, relevant design details, ISO rule amendment information and other key training materials. A method for stakeholders to submit questions will also be made available. This engagement will be applicable to market participants directly or indirectly impacted by the interim market changes, and any other interested stakeholders.

Background

In March 2024 the Alberta government announced regulatory changes regarding economic withholding in the energy market, based on recommendations it received from the Alberta Electric System Operator and the Alberta Market Surveillance Administrator. Two new regulations, the Market Power Mitigation Regulation and the Supply Cushion Regulation, and ISO rule amendments will enable the policy changes. The first regulation implements a secondary offer cap on thermal offers of market participants with a five per cent or greater market share once a certain net revenue threshold has been reached in a month. The second regulation requires the AESO to direct long lead time assets online when the AESO’s supply cushion is forecasted to be below the specified threshold. The AESO will also be making ISO rule amendments to support the changes.

These changes are being implemented to address affordability and market power concerns which balance the mitigation of excessive exercise of market power with minimal interference with market functioning while also ensuring that generators are able to make a reasonable rate of return.

The measures are interim and are to be replaced with a different mitigation approach, which is to be consulted on in the final Restructured Energy Market design.

The rule changes to implement the interim market power mitigation will come into effect by July 1, 2024.

Key Dates

June 11, 2024 | Virtual Information Session

May 21, 2024 | Materials posted

May 17, 2024 | Updated FAQ posted


Purpose

To share with stakeholders the AESO’s plan and design to implement changes regarding the interim market power mitigation. The AESO will share key dates, relevant design details, ISO rule amendment information and other key training materials. A method for stakeholders to submit questions will also be made available. This engagement will be applicable to market participants directly or indirectly impacted by the interim market changes, and any other interested stakeholders.

Background

In March 2024 the Alberta government announced regulatory changes regarding economic withholding in the energy market, based on recommendations it received from the Alberta Electric System Operator and the Alberta Market Surveillance Administrator. Two new regulations, the Market Power Mitigation Regulation and the Supply Cushion Regulation, and ISO rule amendments will enable the policy changes. The first regulation implements a secondary offer cap on thermal offers of market participants with a five per cent or greater market share once a certain net revenue threshold has been reached in a month. The second regulation requires the AESO to direct long lead time assets online when the AESO’s supply cushion is forecasted to be below the specified threshold. The AESO will also be making ISO rule amendments to support the changes.

These changes are being implemented to address affordability and market power concerns which balance the mitigation of excessive exercise of market power with minimal interference with market functioning while also ensuring that generators are able to make a reasonable rate of return.

The measures are interim and are to be replaced with a different mitigation approach, which is to be consulted on in the final Restructured Energy Market design.

The rule changes to implement the interim market power mitigation will come into effect by July 1, 2024.

  • Stakeholder Information Session | June 11, 2024

    Purpose

    The AESO is hosting the virtual information session from 9:30 a.m. to 12:00 p.m. for stakeholders to share final design details to implement changes related to the Market Power Mitigation and Supply Cushion Regulations. The session will provide an overview of the processes, reports and requirements developed to be in place by July 1, 2024.

    Registration

    Click here to register for the session.

    Materials

    Will be available under AESO Materials.

  • Written Consultation on Proposed New and Amended ISO rules | May 21 - 31, 2024

    Purpose

    The AESO is providing notice and seeking feedback from stakeholders on the development of the proposed new and amended ISO rules (and relevant definitions) to facilitate the Market Power Mitigation Regulation, and Supply Cushion Regulation. For additional information, please see the May 21, 2024, Letter of Notice.

    These Regulations require the AESO to make or modify ISO rules to facilitate the Regulation requirements and objectives by July 1, 2024. As a result, the AESO will be filing the Proposed Interim Market Mitigation ISO rules with the Commission on an expedited basis to ensure that the ISO rules will be in effect by July 1, 2024. The AESO expects to file these rules for approval by the Commission on June 14, 2024

    Written Consultation Materials

    Can be found under AESO Materials > .

    Stakeholder Feedback

    Click here to complete stakeholder feedback by May 31, 2024.

  • Stakeholder Information Session | April 18, 2024

    CLOSED: This discussion has concluded.

    Purpose

    The AESO held a virtual information session on April 18, 2024, for stakeholders on the market changes related to the Market Power Mitigation and Supply Cushion Regulations. This session provided an overview of the plan and design details for the AESO to implement the changes required to support the regulations, effective by July 1, 2024. There was an opportunity for stakeholders to ask questions during the session.

    Materials

    Are available under AESO Materials on the right-hand side of the page.

Page last updated: 24 May 2024, 09:15 AM