Alberta Regulation 168/2025 amends the province’s Transmission Regulation under the Electric Utilities Act, reshaping how interties—transmission connections between Alberta and neighboring jurisdictions—are defined, developed, funded, and regulated. The regulation introduces precise definitions for several interties, such as the Alberta-British Columbia Intertie, the Alberta-Saskatchewan Intertie, and the Montana-Alberta Tie Line (MATL), and classifies them as either “regulated” or “merchant” based on who pays for and benefits from them. Regulated interties are financed through tariffs approved by the Alberta Utilities Commission, while merchant interties are funded by private parties or other direct beneficiaries.

Key structural and procedural reforms are embedded throughout the amendment. Notably, previous sections 16 and 17 are repealed and replaced with detailed requirements for the restoration and operation of the Alberta-British Columbia Intertie. The Independent System Operator (ISO) is now obligated to restore import capacity up to 1200 MW and submit a needs identification document by December 31, 2026, for regulatory approval to achieve a minimum capability of 950 MW. The Commission’s role is narrowly defined to assess whether the ISO’s proposed plan is technically sound and in the public interest. Similarly, the Alberta-Saskatchewan Intertie must be expanded to increase bidirectional power flows, with the ISO required to plan, submit documents, and proceed with regulated upgrades upon approval.

The regulation also governs merchant interties more explicitly. For these, proponents must apply to the ISO and assist in preparing a needs identification document, unless the ISO determines that the proposal would compromise system reliability or is not in the public interest. Costs of merchant interties must be borne by the proponent and any direct beneficiaries, with merchant intertie access being offered in a fair and transparent manner through open access processes, such as auctions.

Another key addition is the introduction of a “transmission reinforcement payment,” replacing the former generating unit owner’s contribution mechanism. This payment, calculated based on transmission capacity, resource characteristics, and reinforcement costs, will be paid by owners of new or expanded generation or storage units. The collected funds must be used to offset the ISO’s annual transmission revenue requirement. The payment is non-refundable and has no maximum cap, though it must be at least $0 per MW.

The regulation also mandates how the ISO must recover costs for ancillary services—such as those necessary to support import flows through interties—by ensuring that charges reflect the proportional contribution of each market participant to the need for such services. New Section 48.1 outlines that cost recovery must be transparent and compliant with ISO tariff rules and cannot take effect until the Commission approves a tariff containing these provisions.

Alberta (168/2025) August 2, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.