Alberta tieline hit by lightning expected to have increased capacity soon

After the first day of summer and continued storms across Alberta, power prices rose with continued unexpected thermal outages. The price averaged $47.22/MWh, a 34% increase week over week. The AESO put out a notice yesterday which encouraged that the tieline which remains derated from a lightning strike will likely have increased capacity soon. The forward curve remains steady with no major changes to supply availability or expected increased demand.

Gas prices averaged $1.75/GJ, consistent week over week. There have been no major deviations from forecast for gas on supply or demand – resulting in steady settles and forward curve.

Federal Natural Resource Minister Seamus O’Reagan said that the government is continuing to work on an aid package for the Oil & Gas sector that has been hit hard due to the OPEC+ discussions and decreased demand due to COVID-19.