Supply availability remains strong with weakened demand leading to lower settles in Alberta

Calgary and Brooks got the green light to join the rest of the province and start opening up more businesses this week, however monthly demand remains down 7% compared to this time last year. The weekly price averaged $24.50/MWh, down 14% week over week. Supply availability remains strong and weakened demand is leading to these lower settles. The forward curve remains flat.

AECO gas settles remain strong at $1.97/GJ this week, but the forward curve has continued to drop especially in the near term. The decrease is likely attributed to maintenance schedules.

The AESO announced that no changes were required to the current price cap and floor in place in the energy only market. The analysis detailed that fewer hours at the peak of $999.99/MWh are more influential than hours at the floor of $0/MWh. So far in 2020, 5 hours have reached the peak and 3 have reached the floor.