I asked ChatGPT to provide us with a summary of the AESO...

I asked ChatGPT to provide us with a summary of the AESO presentation with relevance to KPO/Crusoe...

The AESO webinar held on June 4, 2025, outlines a major structural change to how large electrical loads—particularly AI/data centre projects—will be integrated into Alberta's power grid. This directly affects Kalina Distributed Power’s plans with Crusoe Energy in several important ways:

AESO’s Interim Cap on Large Load Connections

Key Limitation Introduced

• AESO has implemented a hard interim cap of 1,200 MW total for large loads connecting to Alberta’s grid between now and 2027/2028 .

• This cap is well below the 16,229 MW requested from 29 data centre applicants, including Crusoe and potentially Kalina’s related infrastructure plans .

Qualification Required

To be eligible for a portion of this limited capacity, each project must:

• Be requesting ≥75 MW of aggregate load for 2027/2028,

• Be at least in the “studies” stage of AESO’s connection process,

• Not require system reinforcements ,

• Provide:

  • Municipal support letters,

  • Financial security (~$14M per 100 MW),

  • Technical confirmation that their requested load doesn’t require grid upgrades .

Impact on Kalina and Crusoe’s Data Centre Rollout

Capacity Competition

• With more than 17 GW in load requests and only 1.2 GW approved for near-term connection, Crusoe and Kalina are now in a crowded race for grid access.

• If they haven’t secured their place in the assignment process or don’t meet the June/July qualification timeline, they risk being placed "on hold" until AESO finalizes its Phase II framework, possibly pushing their grid connection beyond 2028 .

Project Prioritization

• AESO prioritizes projects that are shovel-ready, financially secured, and municipally supported.

• For Kalina, which supplies low-emission power technology to Crusoe’s off-grid or hybrid deployments, the feasibility of connecting these to Alberta’s grid will hinge on whether Crusoe’s facilities are among the prioritized applicants.

Looking Ahead: What’s Coming in Phase II

AESO’s Phase II—expected to start in late 2025—could provide additional options:

• Interruptible rate classes,

• Backup generation protocols (relevant to Kalina’s hybrid modules),

• Redesigned tariffs and ancillary cost structures,

• A more scalable framework for large load growth aligned with government policy and new generation capacity .

Kalina's distributed thermal technology may become more valuable under these flexible models—especially if Phase II allows for partial grid access supplemented by on-site generation, load shedding, or demand response.

✅ Next Steps for Kalina & Crusoe

1. Confirm qualification status: Ensure Crusoe’s Alberta projects have submitted all required documentation (municipal letters, financial security, etc.) by June 30.

2. Secure DTS contracts: These are expected to be issued starting July 21 and must be executed quickly to lock in grid access.

3. Monitor Phase II: Kalina should engage with AESO’s consultations later in 2025 to advocate for hybrid connection models that suit its power modules.