REM Technical Design

Key Dates

June 11, 2024 | REM Shorter Settlement Cost Estimates Comments Due

May 17, 2024 | REM Shorter Settlement Cost Settlement Comment Matrix Posted

May 9, 2024 | REM Stakeholder Survey Responses Posted


Stakeholder Update | May 22, 2024

On Friday, May 17, 2024, AESO President and CEO Mike Law and Nicole LeBlanc, Vice President of Markets met with a select group of industry executives representing companies that have made significant investments in Alberta’s grid and/or represent the consumer voice of Albertans, to discuss two options for how energy market offers, offer mitigation and scarcity pricing (pricing options) could be treated within the Restructured Energy Market (REM), and a third REM alternative pricing option.

The three options are based on stakeholder feedback received at the April 2024 Executive Working Group meetings and through the industry-wide survey on the REM. View the CEO Meeting Presentation and Operating Reserve Demand Curve (ORDC) Technical Primer provided to meeting representatives.

The organizations that attended the meeting are Alberta Direct Connect Consumer Association, AltaLink, ATCO, Canadian Renewable Energy Association, Capital Power, EDF Renewables, Enfinite, ENMAX, EPCOR, FortisAlberta, Heartland Generation, Industrial Power Consumer Association of Alberta, Kineticor Energy, Maxim Power, Suncor Energy, TransAlta, and the Utilities Consumer Advocate. The Market Surveillance Administrator attended as an observer.

Through the course of the discussion, there was consensus amongst stakeholders that the current planned timelines for developing a detailed market design are very aggressive. While the stakeholders acknowledged that the design timelines are necessarily tight in order to achieve the government objective of a 2026 implementation, they indicated timelines will make it challenging to ensure that full analysis and thorough consultation on critical components of the REM is achieved.

Of the participating stakeholders that were willing to state a preference at the meeting, the REM alternative had the most support, however many participants were unwilling to commit without further detail or supported the REM structure.

For those stakeholders who did prefer the REM alternative, a major rationale was that it most closely aligns with the industry structure they elected to invest in, and they see that as a preferable path forward to investor certainty and easier implementation.

The AESO has shared this feedback with government to inform their policy making.

The AESO will continue to progress design work and share more information on the engagement and design in June. Please watch this page for more details over the coming weeks.


Background

Since announcements made at IPPSA in March 2024, the industry has had the time to digest the Government of Alberta's Interim Market Power Mitigation and Supply Cushion Regulations, as well as the AESO’s Restructured Energy Market (REM) Recommendation Report. On April 22 and 23, 2024, the AESO brought the Market Pathways Executive Working Group (EWG) back together to:

  • Build deeper understanding of the REM, its rationale, intent, and the potential impacts on Alberta’s energy market and industry;
  • Discuss and begin to identify the key design questions most impactful and important to industry that need to be answered as we move forward with the REM;
  • Understand which elements stakeholder support and which elements stakeholders have concerns with and why; and
  • Review the AESO's high-level timeline and determine how to best engage on the technical market design and rules, in an accelerated timeline in accordance with the direction letter provided by the Minister.

After the EWG session in April the AESO sought feedback from EWG members and all market participants on the REM Recommendation Report through a survey. The AESO is reviewing survey results which will be shared with the Ministry of Affordability & Utilities in May. Details from the survey results will help to inform the engagement plan moving forward.

Key Dates

June 11, 2024 | REM Shorter Settlement Cost Estimates Comments Due

May 17, 2024 | REM Shorter Settlement Cost Settlement Comment Matrix Posted

May 9, 2024 | REM Stakeholder Survey Responses Posted


Stakeholder Update | May 22, 2024

On Friday, May 17, 2024, AESO President and CEO Mike Law and Nicole LeBlanc, Vice President of Markets met with a select group of industry executives representing companies that have made significant investments in Alberta’s grid and/or represent the consumer voice of Albertans, to discuss two options for how energy market offers, offer mitigation and scarcity pricing (pricing options) could be treated within the Restructured Energy Market (REM), and a third REM alternative pricing option.

The three options are based on stakeholder feedback received at the April 2024 Executive Working Group meetings and through the industry-wide survey on the REM. View the CEO Meeting Presentation and Operating Reserve Demand Curve (ORDC) Technical Primer provided to meeting representatives.

The organizations that attended the meeting are Alberta Direct Connect Consumer Association, AltaLink, ATCO, Canadian Renewable Energy Association, Capital Power, EDF Renewables, Enfinite, ENMAX, EPCOR, FortisAlberta, Heartland Generation, Industrial Power Consumer Association of Alberta, Kineticor Energy, Maxim Power, Suncor Energy, TransAlta, and the Utilities Consumer Advocate. The Market Surveillance Administrator attended as an observer.

Through the course of the discussion, there was consensus amongst stakeholders that the current planned timelines for developing a detailed market design are very aggressive. While the stakeholders acknowledged that the design timelines are necessarily tight in order to achieve the government objective of a 2026 implementation, they indicated timelines will make it challenging to ensure that full analysis and thorough consultation on critical components of the REM is achieved.

Of the participating stakeholders that were willing to state a preference at the meeting, the REM alternative had the most support, however many participants were unwilling to commit without further detail or supported the REM structure.

For those stakeholders who did prefer the REM alternative, a major rationale was that it most closely aligns with the industry structure they elected to invest in, and they see that as a preferable path forward to investor certainty and easier implementation.

The AESO has shared this feedback with government to inform their policy making.

The AESO will continue to progress design work and share more information on the engagement and design in June. Please watch this page for more details over the coming weeks.


Background

Since announcements made at IPPSA in March 2024, the industry has had the time to digest the Government of Alberta's Interim Market Power Mitigation and Supply Cushion Regulations, as well as the AESO’s Restructured Energy Market (REM) Recommendation Report. On April 22 and 23, 2024, the AESO brought the Market Pathways Executive Working Group (EWG) back together to:

  • Build deeper understanding of the REM, its rationale, intent, and the potential impacts on Alberta’s energy market and industry;
  • Discuss and begin to identify the key design questions most impactful and important to industry that need to be answered as we move forward with the REM;
  • Understand which elements stakeholder support and which elements stakeholders have concerns with and why; and
  • Review the AESO's high-level timeline and determine how to best engage on the technical market design and rules, in an accelerated timeline in accordance with the direction letter provided by the Minister.

After the EWG session in April the AESO sought feedback from EWG members and all market participants on the REM Recommendation Report through a survey. The AESO is reviewing survey results which will be shared with the Ministry of Affordability & Utilities in May. Details from the survey results will help to inform the engagement plan moving forward.

  • Written Consultation | REM Shorter Settlement Cost Estimates | May 17 - June 11, 2024

    Purpose

    The Ministry of Affordability and Utilities has asked the AESO to draft the technical design of the Restructured Energy Market. The AESO is currently gathering information from stakeholders involved in the load settlement process to help with its analysis of all the options for moving to a shorter settlement interval. This initial information gathering will be used to better understand the costs and impacts of the alternatives for shorter settlement. There will be opportunity for all stakeholders to provide feedback on the different design options and the AESO’s recommendation for shorter settlement as part of the further consultation process.

    The AESO is looking for information on the cost and implementation impacts on load settlement and billing required to move towards a shorter settlement interval from impacted organizations such as DFOs. Individual results from this survey will remain confidential and the AESO will release a directional summary of the results when the detailed design and recommendation is released for stakeholder feedback.

    If you need further information on how to submit your organization's comment matrix, please email stakeholderrelations@aeso.ca.

    Request for Feedback

    Click here to complete the Stakeholder Comment Matrix with your feedback.

Page last updated: 23 May 2024, 04:19 PM