IPPSA Intelligence

AESO Updates

Alberta’s power grid operator has advanced a Needs Identification Document for a solar-plus-storage connection. The AESO filed its NID for the Dolcy Solar + Energy Storage project connection with the Alberta Utilities Commission on August 11, initiating the regulatory approval process for new transmission facilities.

Meanwhile, efforts to shore up grid stability are accelerating through the Fast Frequency Response Plus procurement work, with a July 23 session summary now available for stakeholders.

In market design, the shift to a Restructured Energy Market moves into rule-writing, with a virtual kick-off scheduled for September 4. Stakeholders can register to shape draft ISO rules governing energy transactions under the REM.

On the tariff front, proposed amendments to the Generating Unit Owner’s Contribution section of the ISO tariff were posted on August 12, and feedback is due by August 29. As Alberta’s energy mix tilts toward inverter-based resources and storage, these developments promise new procurement opportunities, revised operational requirements, and potential changes in interconnection costs.

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AUC Rejects Enmax’s Overhead 138-kV Line Plan 

Alberta’s utility regulator rejected Enmax’s proposal to replace a 50-year-old 138-kilovolt transmission line in Calgary’s Winston Heights–Mountview neighbourhood with overhead steel monopoles, citing insufficient public engagement and cost concerns.

Enmax had offered two options: 28-metre steel poles along 17th Avenue N.E. or an underground replacement priced at $50.6 million. While some local residents welcomed the decision, they remain wary as both proposals were denied and the aging line still requires upgrading. The Alberta Utilities Commission found that Enmax’s consultation fell short of regulatory expectations and concluded the preferred overhead option did not serve the public interest, while the high cost of burying the line would unduly burden ratepayers. 

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AUC Active Energy Applications

Alberta’s energy landscape is evolving rapidly as the provincial regulator catalogs a diverse suite of renewable generation, storage and grid upgrade proposals. More than a dozen solar plants and hybrid solar–storage schemes, alongside standalone battery facilities, are under review, reflecting a strategic pivot toward decarbonization and system flexibility.

Wind power applications and pipeline need assessments further underscore efforts to balance clean energy deployment with fuel infrastructure planning. Transmission reinforcement and substation rebuilds also feature prominently, ensuring the grid can integrate intermittent renewables and support growing demand centers.

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Podcast: Capital Power CEO Avik Dey

Alberta’s power sector is eyeing AI-driven data centres as a growth engine, seeking to align generation capacity and grid flexibility with surging compute loads. Efforts to enhance carbon capture and storage economics are gaining traction, as stakeholders explore policy incentives, financing models and technological refinements to lower capture costs and accelerate deployment.

This focus on CCUS reflects a broader shift toward decarbonization, melding conventional generation with emerging carbon management strategies. Small modular reactors also feature prominently as potential low-carbon baseload resources, offering scalable nuclear capacity to integrate with renewables and meet reliability targets. While detailed policy frameworks remain in flux, the convergence of AI demand, CCUS viability and SMRs reshapes investment landscapes, promising new revenue streams for utilities and developers. 

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New Annual Administration Fee to Fund the UCA

AUC Rule 035 introduces an annual administration fee to finance the Office of the Utilities Consumer Advocate, shifting funding responsibility to regulated distribution utilities starting September 1, 2025. The rule details fee determination, calculation and payment obligations, ensuring the UCA has dedicated resources to represent consumer interests in Alberta’s utilities sector.

Consumer groups and utilities are encouraged to review the rule text, participate in consultations and use AUC contact channels for inquiries or clarifications. Although cost recovery mechanisms remain to be determined, the fee’s introduction underscores evolving policy priorities around accountability, stakeholder participation and sustainable funding for consumer representation in energy rate proceedings.

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Enhancing Electricity Transmission for Economic Resilience

Canada is embarking on major electricity transmission upgrades along its Atlantic and Pacific corridors to bolster domestic energy capacity, strengthen economic resilience, and counteract shifting international trade pressures. By deploying advanced high-voltage lines and smart-grid technologies, the governments aims to improve efficiency, integrate renewable resources, and enhance system stability. 

Upgraded transmission infrastructure is expected to reduce bottlenecks, lower greenhouse gas emissions through greater renewable integration, and stimulate investment in clean energy and manufacturing sectors. The plan aligns with broader policy goals to diversify export markets, diminish reliance on foreign policies that threaten trade, and reinforce energy security amid geopolitical uncertainty.

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The Greenlight Electricity Centre Project

Situated ten kilometers east of Gibbons in Alberta’s Industrial Heartland, a proposed natural-gas-fired power facility aims to supply up to 1,864 megawatts of electricity through four combined gas and steam turbine units over a minimum 40-year lifespan. The Canadian Impact Assessment Agency is seeking public and Indigenous feedback on the Greenlight Electricity Centre’s design, infrastructure components and potential environmental effects, with submissions open until September 2, 2025.

Should approval proceed, the project will involve construction of heat recovery steam generators, high-voltage transmission lines and an associated natural gas pipeline, contributing to regional grid stability and energy security. 

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The Challenges of Manitoba Hydro and Water

Manitoba’s hydroelectric system faces pressure as prolonged droughts reduce water inflows and undermine power generation. Reliant on shared outflows from neighboring jurisdictions, Manitoba Hydro has incurred losses of $157 million in recent years due to low river flows, among other things. Declining water availability, driven by climate variability and rising temperatures, threatens the province’s ability to meet growing electricity demand fueled by population growth and industrial activity.

As water becomes scarcer, tension over cross-border allocations risks eroding cooperation. Adapting to evolving hydrological patterns will require flexible allocation rules, investment in storage infrastructure, and diversification of energy sources to reduce dependency on hydro alone. 

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Addressing Rising Electric Bills and Data Center Demands in the U.S.

Escalating electricity bills in the United States have put pressure on state regulators to reevaluate how energy costs are allocated as data centers operated by Microsoft, Google, Amazon, and Meta now demand power comparable to mid-sized cities. While precise impacts are difficult to quantify, research suggests nearly 70 percent of recent rate hikes stem from data center growth, prompting concerns that ordinary consumers are subsidizing tech giants.

Aging grid infrastructure and broader supply constraints also drive costs higher, complicating efforts to pinpoint responsibility. Regulatory bodies in Oregon, New Jersey and other states are considering imposing higher transmission fees on data centers or adopting new pricing models to ensure fairer cost recovery. Legislative proposals aim to strike a balance between maintaining competitive attraction for large investments and safeguarding residential and small business ratepayers. 

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Ontario Power Generation Q2

Ontario Power Generation posted robust second-quarter results in 2025, driven by stronger nuclear output and lower maintenance costs, with net income rising to $541 million from $160 million a year earlier. Year-to-date earnings reached $1.05 billion, reflecting fewer planned outages and disciplined spending. The Darlington refurbishment program remains on budget and is slated for early 2026 completion, while a licence renewal request for an additional 30 years awaits a Canadian Nuclear Safety Commission decision this fall.

Simultaneously, OPG is advancing small modular reactor construction at the Darlington New Nuclear Project site, promising scalable low-carbon capacity that aligns with Ontario’s recent “Energy for Generations” plan forecasting a 75% demand increase by 2050.

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