Well, it was all about supply and demand with the heat last week! Prices averaged $48.76, up 162% over the previous week.
Power prices hit the price cap of $999.99/MWh for 3 consecutive hours on Wednesday August 26th and settled at $159.73MWh. This was the highest daily settle for more than two years (since June 30th, 2015). Approximately 2,000 MW of coal generation, 1,000 MW of gas generation were offline Wednesday in combination with weak wind and peak demand of 10,703MW. This perfect storm caused the AESO price to spike and for AESO to issue an Energy Emergency Alert.
Thursday settled at $28.65/MWh with demand setting a new summer peak demand record at 10,852MW. Prices were very close to hitting triple digits Thursday, however improved coal availability held settles at $50 or under. Prices hit $500.00/MWh for one hour on Friday before calming down for the weekend.
The events of the week remind us when demand increases due to weather and supply gets constrained, Alberta remains a volatile market.