Cold front across North America could drive electricity and gas prices up

Another mild week in January is leading to softer monthly settles than anticipated for the start of 2019. This
past week’s settles averaged 25% less at $34.71/MWh. This week’s prices could see strength with significant
cold weather across most of the US depending on exports, but significant wind is forecasted to keep prices
down. Interestingly, forwards are strong with an increase of ~$0.40/MWh for the balance of 2019.

Gas prices settled $1.88/GJ, a 5% decrease from the prior week. Strength in settles may also occur this week
as the coldest day of the 2018-2019 winter is anticipated in the US tomorrow. Forwards remain flat.

The National Energy Board is continuing to review the Trans Mountain Expansion. Trans Mountain has
agreed to three additional measures in order to protect marine wildlife. The re-review of the project is
focused on environmental impact and the report is expected to be released on or before February 22nd,