Peace Power’s First Contest and Another Great Month for Electricity!
Greetings from Peace Power!
We have two great pieces of news for you all!
The first is we are excited to say we have a contest running right now! We are giving you a chance to attend the Opening Day of the FIFA Women’s World Cup 2015 in Edmonton on June 6th! It will be a fantastic day cheering on Team Canada in their first match as well as seeing the opening ceremonies with performances by Sarah McLachlan and Tegan and Sara! If you share the post, or sign up for service with us, or are a current customer you will get extra entries so be sure to enter yourself and tell your friends!
The second is that the month of April set a new record low for electricity prices dating back to the birth of deregulation of Alberta’s electricity market. The Power Pool price for April 2015 closed at $20.52 per MW. During 2015 prices have been slowly sliding downwards and Peace Power has been happy to make sure our customers are benefiting.
Here are a few things that have been happening in the Alberta market which has helped to lower prices:
· The Sundance power plant is back online, the new Shepard plant is now into production, and new wind production has added to the fleet of generation. This has helped create an imbalance between supply and demand as Alberta is generating more supply than is being used, thus driving down the price.
· Gas prices are very soft, resulting in lower generation costs.
· There are no longer transmission bottlenecks which historically have been a problem.
· Mild winter temperatures helped set records.
· The availability of good inter-tie connections between Alberta and Saskatchewan, BC, and Montana, critical infrastructure needed to transfer electricity between these regions, eliminated a bottle neck in supply.
· Alberta is an ‘Event Driven” market and there have not been any events that resulted in price volatility.
While the immediate future looks promising you might be wondering what the future market looks like. Higher market prices will be driven by the retirement of coal generation plants in 2018 and 2019, however, until then we will most likely be looking at a period of price stability and low prices.
At the end of the day, consumers are benefiting and deregulation is working quite well. We are also very happy to say that Peace Power is succeeding in offering significant savings to Albertans! During April, residential customers buying from Peace Power on our floating rate (indexed directly to the Power Pool price) paid only 3.28 cents/kWh, 37% less than the government’s regulated rate. In fact, over the past 12 months our floating rate customers have saved 24% compared to the regulated rate!
President, Peace Power Corporation