IPPSA Intelligence

AESO

Active stakeholder feedback periods in January invite market participants to shape AESO’s evolving market-design framework by submitting input on frequency response, cost-of-service and benefit-of-service studies, and real-time energy market readiness. Deadlines on January 19, 21 and 26 mark opportunities to influence the Fast Frequency Response high-level design, Cost of Service and Benefit of Service studies, and a pre-engagement survey for Real-Time Energy Market participant readiness.

Alongside engagement timelines, AESO confirmed its 2026 energy market trading charge at 60.6 cents per megawatt-hour, a fixed cost element that will directly affect budgeting and trading calculations.

Participants are encouraged to review detailed materials on the AESO website and to direct any queries to stakeholder.relations@aeso.ca.

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Alberta disputes U.S. claims of unfair treatment of Montana electricity providers

Alberta is pushing back against complaints from a Berkshire Hathaway-owned energy company and U.S. interests that its electricity market unfairly restricts power imports from Montana, saying the province’s grid operator isn’t discriminating against American generators as alleged. The dispute centers on access to the Montana-Alberta Tie Line and claims the Alberta Electric System Operator (AESO) has favoured domestic over U.S. power, potentially deterring renewable energy investment and increasing costs — accusations Alberta rejects amid broader changes to its electricity system.

The disagreement has drawn attention from U.S. trade officials and political figures who argue Alberta’s practices could violate trade obligations and harm Montana producers, while Alberta maintains its priority is grid reliability and that its actions comply with trade rules.

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Turning Stranded Natural Gas into Bitcoin in Alberta

Calgary’s New West Data Corp. is converting stranded natural gas at legacy oil wells into on‑site electricity using small gas-fired generators and dedicating that power to bitcoin mining, monetizing gas that cannot reach markets because of absent pipeline infrastructure. The model localizes energy production, avoids costly transport builds and creates revenue streams for otherwise uneconomic wells, aligning with Alberta’s push to attract data centres and digital investment.

Operationally, generators installed at producing wells consume associated gas, powering mining rigs and sidestepping grid interconnection. Economically this can revive marginal assets and generate local activity, but viability hinges on bitcoin prices, generator costs, permitting and fuel availability.

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Radiant Ridge Energy Announces Strategic Partnership for 40MW

Radiant Ridge Energy Ltd., a Calgary-based provider of behind-the-meter natural gas power solutions, has entered into a strategic Letter of Intent with an Alberta upstream gas producer to develop an integrated gas supply and 40 MW natural gas-to-electricity project in Northern Alberta, aiming to serve high-performance computing and data center power needs by directly linking gas production with on-site generation.

The partnership reflects a new “digital midstream” model that bypasses traditional infrastructure bottlenecks and could provide reliable, long-term electricity backed by dedicated gas supply, with initial operations planned over a three-year period and potential extension depending on future development.

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Alberta cabinet change: Rebecca Schulz resigns; Grant Hunter named Minister of Environment and Protected Areas

Premier Danielle Smith announced cabinet and caucus changes effective Jan. 2, 2026, marking the resignation of Rebecca Schulz from her role as Minister of Environment and Protected Areas. Schulz, MLA for Calgary‑Shaw since 2019 who previously served in children’s services and municipal affairs, will remain an MLA and UCP caucus member through the spring before pursuing new career opportunities.

Grant Hunter, MLA for Taber‑Warner and current Associate Minister for Water, will be sworn in as Minister of Environment and Protected Areas; his experience includes prior ministerial duties and work on red tape reduction.

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Alberta Minister Nathan Neudorf to Attend Montana Chamber Business Days (Jan. 6–7, 2026)

Alberta’s Minister of Affordability and Utilities, Nathan Neudorf, travelled to Helena, Montana, on Jan. 6–7, 2026 to deliver a keynote at the Montana Chamber of Commerce’s Business Days at the Capitol and meet officials, business leaders and policy experts. The mission aimed to strengthen cross‑border power partnerships to keep Alberta’s grid affordable, reliable and sustainable by exploring improved interties, shared infrastructure, energy innovation and grid modernization.

The visit is positioned to promote Alberta’s competitive electricity market to investors and innovators in sectors such as data centres and nuclear energy while advancing coordinated planning and trade with U.S. neighbours. An outlined itinerary and meetings signal targeted discussions on managing rising demand and leveraging regional connections to lower costs and enhance reliability.

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Swiss-backed gas-fired data-centre plan in Alberta ties €8B investment

Swiss-backed Data District, partnered with TNE, plans a multi‑phase data‑centre build in Alberta beginning with a €780 million first phase in Olds and potentially expanding to about €8 billion and roughly 1 GW of capacity. The developers intend to supply about 80% of electricity on‑site from natural gas and take the remainder from the grid, a gas‑centric strategy driven by local fuel availability, investor interest and anticipated AI-computing demand.

The timing and site choice are tightly linked to a recent federal‑provincial understanding that eased some clean‑electricity constraints while requiring higher industrial carbon pricing and strengthened carbon trading in Alberta, and that signalled federal support for pipelines, carbon capture and data‑centre projects.

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Canadian Company has just broken a world record in nuclear fusion

Canada’s General Fusion has reportedly set a new world record in nuclear fusion research by producing about 600 million fusion neutrons per second in a magnetized target fusion experiment, a benchmark that signals real progress toward controlled fusion reactions and has drawn attention from energy researchers globally.

The high neutron output, published in peer-reviewed results and described as a clear step in validating this fusion approach, demonstrates improved plasma compression and stability — important technical milestones on the path toward devices that could one day generate net energy. While practical, commercial fusion power plants remain years away due to still-significant engineering and energy-gain challenges, this record underscores that the science of fusion is advancing and continues to excite both industry and scientific communities.

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SaskPower Seeks Two 3.9% Electricity Rate Hikes

Saskatchewan faces an immediate electricity affordability and governance clash as SaskPower seeks consecutive 3.9% rate increases—an interim hike effective Feb. 1, 2026, and the same in 2027—triggering a partisan debate over utility finances, energy strategy and public process. The NDP accuses government mismanagement, citing a recent $800 million removal from public accounts, $135 million to be raised by the proposed hikes, roughly $550 million in annual debt‑servicing costs, and projected bill impacts (about $25M from households, $22M from small businesses, $7M from farms).

Critics also warn the Rate Review Panel won’t meet before the interim increase, limiting pre‑implementation public input and transparency. The government defends its “all‑of‑the‑above” Energy Security Strategy, rejects the accusations as politically motivated, and warns that NDP proposals would close coal plants supplying over a third of generation.

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Drought and weak exports could cost Manitoba Hydro $700M

Manitoba Hydro is confronting mounting financial stress, with an independent analysis projecting at least a $700 million loss this fiscal year driven by drought‑reduced hydro output, higher imports and weaker export revenues. Despite remaining a net exporter of roughly 1 TWh in its first quarter, the utility reported a $61 million loss, signaling revenue pressure beyond volumes alone.

Reduced water availability has curtailed generation from northern hydro stations that feed southern load centres via a strained transmission network, increasing reliance on market imports at higher cost while trimming lucrative export opportunities. Critics argue the Crown utility should diversify away from weather‑dependent hydro toward firm dispatchable capacity such as natural gas and nuclear to stabilize supply and revenues.

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Regulatory hearing opens as Nova Scotia Power

Nova Scotia Power has applied to raise residential electricity rates by 3.8% this year and 4.1% on Jan. 1, 2027, to finance a $1.3 billion grid strengthening program focused on expanded tree trimming, vegetation management and improved storm response and resilience.

A provincial energy board hearing opened Jan. 7, 2026 in Halifax to scrutinize the request. The timing has provoked sharp political criticism: Premier Tim Houston urged withdrawal or deep reduction of the application and NDP Leader Claudia Chender said the ask was illogical amid stagnant household incomes, concerns amplified by public distrust after a data breach that may have affected all 550,000 customers.

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Ontario approves 65-km “Third Line” 900-MW underwater cable

Ontario approved construction of the “Third Line,” a roughly 65‑kilometre underwater transmission cable from Darlington Nuclear Generating Station to Toronto’s Portlands, sized at about 900 MW to carry the output of three planned 300‑MW SMRs. The subsea route was selected over two land corridors because it offers higher long‑term capacity and greater resilience to storms, though capital costs are higher; government estimates center on $1.5 billion (range $750 million–$3 billion).

Procurement opens this year, construction is slated to start next year and could take seven to ten years, with service required by 2037. IESO forecasts Toronto peak demand could nearly double within two decades and shift seasonality toward winter as electrification of housing, transit and vehicles accelerates, making the Third Line a long‑duration solution through the 2050s.

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IPPSA's Mandate

IPPSA's mission is to convene industry, providing information, resources, and a forum for knowledge sharing, and to create opportunities for dialogue, collaboration, and education. This newsletter is meant to inform members but not advocate for specific outcomes. We always appreciate your feedback at info@ippsa.com.