Alberta Wire October 17th, 2017

Prices moved higher over the past week – up over 15% – to average $21.21/MWh. This increase can be attributed to a price spike reaching $992/MWh on Friday the 13th as a coal unit ramped offline. No impact on the forward curve with calendar prices from 2018 onwards holding steady. All quiet on the capacity market design front as there has been little coverage recently on the capacity market, but a third proposal is expected to be released at the end of November.
The AECO-C spot price is up 22% averaging a whopping $0.76/GJ this week. Gas prices continue to see significant volatility as pipeline maintenance continues into the colder season. The province’s gas storage is about 98% full as the industry prepares to move into the winter months.
The Toronto Star released an interesting Question and Answer about the Ontario electricity pricing. It shows that Ontario has had significant turmoil in their market leading to extremely high prices where, on average, the residential rate per kilowatt hour is higher than other Canadian provinces, even with subsidies of about $40 on each monthly bill. Interestingly, the grid is ~60% nuclear generation, which is extremely costly to maintain. The provinces new Long Term Plan should be released soon, with plans for further cost reductions for consumers.