The Balancing Pool has announced the termination of Sundance B and Sundance C PPAs. The termination will be effective no later than March 31st, 2018, returning 1,416 MW of generation to industry. An external analysis completed for the Balancing Pool suggested that after termination prices may save rate payers upwards of $475 million. The news release can be found here.
This past week saw a slight increase in price, up ~$0.50/MWh to $20.07/MWh. Overall this week was wildly average with average wind, average forced and unforced outages and average demand. Within the last two weeks there has been a notable forward price increase in the 2018 forwards, up ~$2.00/MWh. Temperatures in Alberta are trending 1.4ºC lower compared to this time last year and fall is definitely in the air.
The AECO-C spot price averaged $1.50/GJ, up from $0.70/GJ – a 115% increase from last week! This dramatic increase can be attributed to the completion of Empress maintenance, allowing East exports to resume flow. The September average is $1.18/GJ.