Tariff Evolution Roundtable & World Cafe

Introduction

On Nov. 10, 2022, the Alberta Utilities Commission (AUC) issued its Bulk and Regional Tariff Design Decision,[1] which denied the AESO’s Oct. 15, 2021 rate design application. Having considered the Decision, the AESO is starting a new process to collaborate with stakeholders to reconsider what principles and objectives should guide the ISO tariff rate design for the benefit of Albertans.

Reflecting on stakeholder feedback received across our engagements identified areas of enhancements to further strengthen our engagement approach and drive value, including:

  • Conducting in-person forums to enable more in-depth discussions with the AESO and amongst fellow industry members;
  • More fully utilizing industry expertise in framing the issue and approach, prioritization, as well as solution development and refinement; and
  • Improving how we demonstrate that stakeholder feedback has been considered.

The AESO is committed to applying these learnings to this engagement. To this end, hosted a Tariff Evolution Roundtable and World Café forum on Feb. 14, 2023, to kick off an industry discussion on industry perceptions, needs, and priorities for tariff evolution in the years to come.

We hope this session offered opportunities to discuss, listen and learn from one another, to strengthen our relationships and to reset for this next stage of tariff evolution and how we work together.

[1] Decision 26911-D01-2022, AESO Bulk and Regional Rate Design and Modernized DOS Rate Design Application (November 10, 2022)

Introduction

On Nov. 10, 2022, the Alberta Utilities Commission (AUC) issued its Bulk and Regional Tariff Design Decision,[1] which denied the AESO’s Oct. 15, 2021 rate design application. Having considered the Decision, the AESO is starting a new process to collaborate with stakeholders to reconsider what principles and objectives should guide the ISO tariff rate design for the benefit of Albertans.

Reflecting on stakeholder feedback received across our engagements identified areas of enhancements to further strengthen our engagement approach and drive value, including:

  • Conducting in-person forums to enable more in-depth discussions with the AESO and amongst fellow industry members;
  • More fully utilizing industry expertise in framing the issue and approach, prioritization, as well as solution development and refinement; and
  • Improving how we demonstrate that stakeholder feedback has been considered.

The AESO is committed to applying these learnings to this engagement. To this end, hosted a Tariff Evolution Roundtable and World Café forum on Feb. 14, 2023, to kick off an industry discussion on industry perceptions, needs, and priorities for tariff evolution in the years to come.

We hope this session offered opportunities to discuss, listen and learn from one another, to strengthen our relationships and to reset for this next stage of tariff evolution and how we work together.

[1] Decision 26911-D01-2022, AESO Bulk and Regional Rate Design and Modernized DOS Rate Design Application (November 10, 2022)

  • Stakeholder Session - Energy Storage Tariff Working Group Progress Update | June 6, 2023

    The AESO is providing notice to interested stakeholders to hold the date for a hybrid Energy Storage Tariff Working Group Stakeholder Session on June 6, 2023 from 9 a.m. to 4 p.m.

    Purpose

    The purpose of this session is to update industry on progress of the Energy Storage Tariff Working Group and provide an opportunity for discussion and to seek feedback from the broader stakeholder community.

    Registration Information

    To register, please click here and ensure you select whether you will attend in person or virtually.

    June 6, 2023 Session Materials

    WiIl be posted under AESO Materials by May 30, 2023.


  • Energy Storage Tariff Module Scope of Work | March 29-April 20, 2023

    Purpose

    The AESO has developed a proposed Energy Storage (ES) Tariff Module Scope of Work which represents the AESO’s recommendation and proposed process for advancing a tariff treatment for energy storage. The purpose of this consultation is to seek feedback from interested stakeholders on their perspectives as it relates to the proposed engagement process and high-level scope of work.

    Working Group Membership

    The AESO proposes that the working group consist of the following categories of members in order to ensure the recommendation meets the objective of removing barriers to energy storage development, represents fair outcomes, and considers the input from other potentially impacted stakeholders:

    • Energy storage proponents and developer representatives (2-3 members). The AESO is of the view that a small number of ES proponents, acting on behalf of the larger group of ES developers within Alberta, should be sufficient to represent their interests and needs.
    • Load representatives (3-4 members). Since load pays for the tariff and their bills will be impacted, the AESO believes it is important for load organizations, representing a broad set of load customers, be part of the working group.
    • Other representatives including generation owners/developers, TFO/DFO (2-3 members). The AESO acknowledges and appreciates that generators are impacted by ES participation in the energy and ancillary services markets and that ES entry into those markets is impacted by the ISO tariff. DFOs may need to consider impacts to their customers. Other market participants may be impacted by the recommendation and therefore it is important their views and inputs be considered.
    • AESO (2-3 members)


    To determine membership, industry representatives who wished to participate nominated themselves as a representative of one of the above categories when completing the ES Tariff Module Scope of Work Request for Feedback.

    Working Group Members and Facilitator Announcement

    Thank you to all industry participants who put their name forward for a seat on the ES Tariff Module Working Group. We appreciate your interest and for those participants not selected for a seat, you still have an important role to play in this engagement. This may be through touching base with the ES working group members to maximize the working group members' ability to bring forward key inputs and concerns from your organization, as well as taking the opportunity to participate and share your insights and feedback on the working group discussions, outcomes and key decision points brought back to the broader stakeholder community.

    The ES Working Group members are as follows:

    Category Organization Industry Representative
    Energy Storage Proponents and Developer Representatives
    (2-3 members)
    CanREA Vittoria Bellissimo
    Energy Storage Canada Robert Tremblay
    Enfinite Mike Schoenenberger
    Load Representatives
    (3-4 members)
    ADC Colette Chekerda
    IPCAA Richard Penn
    Suncor Horst Klinkenborg
    UCA UCA Expert
    Other Representatives including Generation Owners/Developers, TFO/DFO
    (2-3 members)
    AltaLink Hao Liu
    ENMAX Corporation Wesley Manfro
    Heartland Generation Kurtis Glasier
    AESO
    (2-3 members)
    AESO Steven Everett
    Steve Waller
    LaRhonda Papworth


    Within the Negotiated Settlement section of the ES Scope of Work the AESO noted its intention to employ the services of a facilitator with an appropriate skill set and industry experience to act as a neutral third party to assist the AESO and the working group in seeking a negotiated settlement. The AESO has moved forward and retained Keith Miller to act as a neutral third-party facilitator to assist the ES working group in seeking a negotiated settlement relating to the tariff treatment of ES. Mr. Miller is an energy regulatory lawyer with almost 40 years' experience. View Mr. Miller's bio here.

    Stakeholder Comments

    We value stakeholder feedback, and we thank you for sharing your perspectives with us on the Energy Storage Tariff Module Scope of Work. View Stakeholder Comments here or in the Stakeholder Submissions section.

    Virtual Q&A Session

    The AESO hosted a virtual Energy Storage Tariff Module Scope of Work Q&A Session on April 12, 2023, from 1:30 p.m. - 3 p.m. This session provided an opportunity to stakeholders to discuss any questions they may have and to explore any areas where clarification is needed before the deadline to self-nominate for a seat on the working group or submit their feedback on the scope of work proposal.

    Materials

    Energy Storage Tariff Module materials can be found in the AESO Materials section.

  • Tariff Evolution Roundtable & World Cafe | Feb. 14, 2023

    CLOSED: This discussion has concluded.

    The AESO hosted the hybrid industry forum on Feb. 14, 2023, from 9 a.m. - 4 p.m.

    Purpose

    To create a forum for industry to discuss its perceptions, needs, and priorities for tariff evolution in the coming years.

    Objectives

    1. Bring stakeholders together to informally discuss the industry’s perspectives on the tariff today, including key outcomes from the AUC’s decision to deny the Bulk and Regional Tariff design application;
    2. Understand the needs and priorities that various stakeholders have, and how bulk and regional tariff design fits in to those needs and priorities;
    3. Collect input from stakeholders on the process and priorities that the AESO should consider when preparing its tariff engagement plan for the coming years, including the next steps for the bulk and regional tariff; and,
    4. Ensure stakeholders leave feeling heard through the process.

    Stakeholder Comments

    Proposed 2023 Tariff Work Plan

    We value stakeholder input and thank you for sharing your perspectives with us on the proposed 2023 Tariff Work Plan. View Stakeholder Comments here or in the Stakeholder Submissions section.

    Session Summary & Format

    We value stakeholder input and thank you for sharing your perspectives with us on the Session Summary discussion themes as well as the session format. View Stakeholder Comments here or in the Stakeholder Submissions Section.

    Session Materials

    All session materials can be found in the AESO Materials section.

    Session Overview

    • Morning: A moderated roundtable discussion, observable by all session attendees.
    • Afternoon: A series of break-out rotations to provide your input on specific discussion questions. (i.e., World Café)

    For session details, see the Session Overview document located in the AESO Materials section.

    Successful Panelists

    Thank you to all applicants for putting your name forward to be a panelist for the upcoming AESO Tariff Evolution Roundtable & World Café forum on Feb. 14, 2023. We appreciate your interest and look forward to seeing you all on the 14th. The successful panelists are as follows:

    1. Large / Industrial Load Organizations or Advocacy Group
      • Industrial Power Consumers Assocation of Alberta (IPCAA) - Richard Penn
      • Suncor Energy Marketing Inc. - Horst Klinkenborg
    2. Small / Residential Load Organizations or Advocacy Group
      • Office of the Utilities Consumer Advocate (UCA) - Nola Ruzycki
      • Consumers Coalition of Alberta (CCA) - James Wachowich
    3. Generation / Distribution Connected Generation
      • Capital Power - Matt Davis
      • Lionstooth Energy - Geoff Lester
    4. Transmission Facility Owner / Distribution Facility Owner
      • AltaLink - Hao Liu
    5. Energy Storage
      • Canadian Renewable Energy Assocation (CanREA) - Vittoria Bellissimo
    6. Consultant, Independent or Other
      • TC Energy on behalf of Joint Parties (Exports) - Mark Thompson
      • The Brattle Group - Tom Chapman

    Discussion Topics

    Roundtable Discussion Topics

    1. Opening remarks – Highlight your name, organization, role, and your goals for the day.
    2. In the grander scheme of the transformation of the electrical system, where in the overall priority stack is updating or evolving the ISO tariff?
    3. How can a tariff best be designed in the current legislative framework?
    4. The Commission has requested the AESO to file a new rate design application by the end of January 2025. What should the overall goal of the rate design application be?
    5. What principles should be considered in future ISO tariff rate design processes? Which principles, if any, should be deprioritized in future tariff rate design processes?
    6. How would you like to see the AESO’s engagement process and approach change in future ISO tariff engagements?
    7. What are potential solutions to improve regulatory efficiency in the design and filing process?

    World Café Topics

    1. ISO Tariff Evolution Priorities:
      1. What topics are the highest priority items to resolve for the industry and why?
      2. Which discussions can be or need to be combined, vs. should be best separated?
      3. What should be on the AESO’s engagement plan in the coming year(s)?
    2. The Overall Goal of a New Bulk and Regional Rate Design:
      1. What should the overall goal of a bulk and regional tariff rate design process be?
      2. What’s the challenge or opportunity that the industry is trying to solve for?
      3. What principles should the industry adopt to guide the ISO tariff rate design process?
    3. Evolving how we Collaborate and Engage
      1. How should the engagement process be different in the future?
      2. What specific actions, activities, or tactics would you like to see AESO and the industry employ to improve collaboration on future ISO tariff design priorities?
      3. How should engagement change to improve regulatory efficiency and deliver optimized regulatory outcomes?
Page last updated: 30 Jan 2024, 11:30 AM