Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 409

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 409
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 to be implemented in 2026, in alignment with the federal carbon pricing regime. TransAlta continues to monitor this development. In the third quarter of 2025, the Government of Alberta introduced proposed amendments to the Technology Innovation and Emissions Reduction (TIER) regulation. Key elements of the proposal include the recognition of on-siteemissions reduction investments as an additional compliance pathway under the TIER system, and the option for smaller facilities currently participating in the program to opt out for the 2025 compliance year, with the stated intent of reducing administrative burden and costs. The Government of Alberta has indicated that formal amendments to the regulation will be drafted and incorporated in 2025. Further details are expected to be released upon finalization of the regulatory changes. During 2025, the Government has carried out legislative changes to implement the Restructured Energy Market (REM), which has included amendments to the Electric Utilities Act and Transmission Regulation. During the third quarter of 2025, the AESO finalized the REM design and issued a draft of the detailed market rules to implement the REM. On July 10, 2025, the Minister of Affordability and Utilities (Minister) issued a letter to the AESO that directed the AESO to implement locational marginal pricing in Alberta and allocate financial transmission rights to in-servicegenerating units and those that have made a financial investment decision on or before July 9, 2025 (Incumbent Generators). Financial transmission rights will provide mitigation to Incumbent Generators that could be exposed to lower pricing due to the adoption of locational marginal pricing, allowing those generators to be paid at the system-wide price. The financial transmission rights will be allocated to Incumbent Generators for fixed volume and for a period of eight years unless the asset retires before the eight year period expires. The Minister has directed the AESO to collect stakeholder feedback and provide advice to the Minister regarding these items. On Aug. 27, 2025, the AESO published the Restructured Energy Market (REM) Final Design, outlining key market reforms including an increase in the price cap, phased changes to the energy offer cap and floor, introduction of a new 30-minutereal-time ramping product, adoption of locational marginal pricing, a revised secondary offer cap, a new local market power mechanism, a reliability unit commitment process for long lead time assets, and changes to the procurement of day-aheadoperating reserves market. The AESO is engaging with industry stakeholders on the REM market