In the frozen icy Albertan deep freeze this week, power averaged $149.70/MWh, a 300% increase week over week. Yesterday averaged $666.32/MWh and temperatures are expected to stay historically low for the near future. Alberta was short of hitting a new load peak yesterday, but the potential exists again today to exceed 11,697 MW. A Level 2 Emergency Alert was declared yesterday evening whereby all available generation and reserves were being utilized. With wind chill, parts of the province may reach -50 this week – potentially making Alberta the coldest place in the world.
Gas prices also climbed this week averaging $2.38/GJ, a 13% increase week over week. Significant draws on storage are expected to continue to the end of the week. Year over year, storage draws are comparable with colder weather last January and February. Many producers are celebrating the cold weather as it does allow for strength in prices and greater volatility in settles.