The Alberta Wire – January 9, 2018

With a full week of 2018 complete, power prices are trending up as the week averaged ~10% higher than previous at $33.04/MWh. With no major outages or weather events, the increased price from the ~$22 prices in 2017 can be attributed to the carbon tax and is probably the new normal going forward. Forward prices remained steady week over week.
Natural gas prices settled ~60% lower than last week at $2.67/GJ, as the province warmed up and freeze-offs abated. As production recovered and demand decreased, storage withdrawals in Alberta fell from a record high of ~3.6 Bcf last week to ~1 Bcf. Storage withdrawals have not reached these levels since the polar vortex in February 2014!
The Energy Efficiency Alberta project has been deemed successful, with over 50,000 households getting involved to some degree whether they replaced light bulbs or windows. According to CEO Monica Curtis, the products purchased equates to ~$200 million in energy savings for the life of the products. The project will continue into 2018 with a budget of $132 million annually.