2020 continues to surprise everyone after Calgary and Southern Alberta experienced a terrible hail storm this weekend causing damage to houses, cars and infrastructure. Power prices were up during the storm as wind generation decreased. We are also still experiencing derates on the tie line due to a lightning strike last week, and some thermal generation is offline to begin preparation for a coal-to-gas conversion later in the year. Price averaged $35.16/MWh, up 26% week over week. While prices were soft this week, a few three digit settles contributed to the increase.
Gas averaged $1.78/GJ, continuing to be consistent. The forward curve is down for the rest of the year on news of maintenance schedules. Significant production in the oil sands is still shut in and with that, potential decreased new gas supply as well.
With Phase 2 of the governments plan to reopen the economy going strong, Alberta has decided to end the state of public health emergency. Many businesses are able to reopen to some capacity and office employees are beginning to return to work. It is expected that over the next few weeks demand will begin to return to more normal levels in Alberta’s electricity sector.