The Alberta Wire – November 14, 2017

Warmer weekend temperatures and no thermal generation forced outages saw weekly power price settled down 9% over last week at $22.41/MWh. We had one hour that settled above $50/MWh this week, and interestingly, looking at year to date, over half of the hours that settled greater than $50/MWh have occurred since August. Prices on average have gradually increased since the beginning of 2017 but forward prices remained relatively constant week over week.
The AECO-C gas price is still holding well above the $2/GJ mark albeit 8% lower from last week settling at $2.35/GJ. The producers have been trimming their 2018 budgets undoubtedly in response to persistent low natural gas prices and prospects for near term significant moves higher.
The Conference of the Parties 23 is coming to a close this week in Bonn, Germany. Canada and the UK have shown alignment on the retirement of coal generation, which accounts for 40% of global carbon emissions. Other notable topics discussed include the future of electric vehicles (EVs), and the commitment from numerous multinational firms to convert to EVs by 2030.