Chilly December weather in Alberta

It’s time to deck the halls and celebrate the holidays! December 1st came and the chilly weather set in. This week
averaged $62.20/MWh with strength coming from higher exports to the Midwest US and less wind generation than
anticipated. Demonstrating the intermittency of wind, up to 900MW of wind generation is expected today. November
settled 58% higher than November 2017 at $59.21/MWh. Forwards hold steady as we head into the end of the year.

AECO gas averaged $0.75/GJ this week, a sharp decline week over week, mostly attributed to warmer weather leading
into December. November averaged $1.57 with significant volatility ranging from daily settles between -$0.01/GJ to
$3.12/GJ.

Premier Rachel Notley announced an 8.7% reduction in crude production starting January 1, 2019. On the
announcement, Western Canadian Select moved up over $8US/barrel. The announcement brought mixed reviews from
producers, some saying it was necessary to curtail production, others saying that there shouldn’t be government
involvement in the industry.