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.

View Energy Storage Rule Amendments for information and opportunities to participate.

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.