The Alberta Wire – December 12, 2017

Summer weather and record breaking December temperatures in Alberta led to settles of $18.85/MWh and $1.25/GJ, a decrease of 7% and 59% respectively week over week. Forward power prices saw a ~$3.00/MWh increase due to market announcements.
TransAlta held its Investors day on Wednesday announcing accelerated coal to gas conversions by 2022, an agreement with Tidewater to construct a natural gas pipeline for the converted gas units, and additional mothballing of coal units.
The government announced a new carbon program called Output Based Allocation (OBA). The program will benchmark major industries such as electricity generation, and facilities that emit more than the benchmark will be required to pay. This announcement may increase forward prices as older units will incur increased operating costs to continue to run.