The Alberta Wire – December 19, 2017

Merry Christmas from TransAlta! It’s the most wonderful time of the year and the last Wire of 2017! After an unseasonably warm December (over 10 degrees higher than the average!), it’s finally starting to look like a winter wonderland outside. Most of Alberta is expecting to see a white Christmas. Power settled 1% higher than last week at $19.07/MWh. Forward prices moved up ~$0.70/MWh in 2018 but saw weaker prices from 2019.

On the gas front, AECO settled at $1.63/GJ, up 23% week over week. Price increase can be attributed to reduced restrictions on the NOVA system. As the cold weather moves in, prices are expected to be steady into the new year.

The government selected four wind projects from the first Renewable Electricity Program auction to be built by three companies: Enel’s Castle Rock Ridge Phase 2, Enel’s Riverview, Energias de Portugal’s Sharp Hills and Capital Power’s Whitla. The projects combined are 600 MW, 200 MW greater than the original plan, due to the low contracted price of ~$37/MWh.