Hopefully, April showers will bring May flowers! March electricity prices averaged $42.16/MWh, 35% lower than March 2019. Alberta power prices settled at $31.32/MWh for the week, an 18% reduction from last week’s settles. The decrease in pool price is attributed to the reduced demand, with current baseload demand down ~700MW. The front end of the curve is down ~1/MWh as forecasts are revised to include less production from the Oil & Gas sector.
AECO gas settles are $1.87 for the current week. This is up 5% from last week’s settles of $1.78. The weakness in oil price has been good for AECO gas – the forward curve is up ~$0.10/GJ in the next 18-24 months. Price strength is coming from weakness in the NYMEX basis.
Aside from the news frenzy surrounding the Coronavirus, there were two major industry announcements this past week. The proposed carbon tax increase went forward Monday, up to $30/tonne under the federal standard. Work has also started in Montana on the Keystone XL Pipeline project.