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Aegent Energy Update                          

September 2008

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In This Issue

Natural Gas Update

Electricity Update

Don't Get Harpooned in a Retail Power Deal

Ontario's Near-Term Electricity Shelf Well-Stocked

Contracting Wisely for T1 Can Reduce Costs

OEB Consults on Low Income Energy Consumer Issues

 

Natural Gas Update

Natural gas prices have continued their downward trend from the year's peak in July.  The current average price for the 12-month forward strip at AECO is $6.93/GJ, about $4 less than at the beginning of July.  Storage levels are approximately 5% lower than last year.  The difference is partly attributable to the effects of Hurricanes Gustav and Ike.  It has been estimated that as of September 29, about 47% of the Gulf gas production was shut-in.  Nonetheless, it is expected that inventories will be adequate for the upcoming heating season.

 

Aegent Weekly Gas Market Review >

 

 

Electricity Update

As of September 26, the forward baseload and on-peak prices in Ontario for the first quarter of 2009 were about $55/MWh and $68/MWh, respectively, reflecting a decline of about $1/MWh for each relative to the end of the previous week.  Prices for calendar 2009 have shown a similar decrease with current prices for baseload at about $52MW/h and for on-peak at $66/MWh.  The IESO describes the Ontario supply-demand outlook for the next 18 months as being very positive with more than 5,000 MW of supply scheduled to come into service over the outlook period.  

 

Aegent Weekly Electricity Market Review >


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Don't Get Harpooned in a Retail Power Deal

In the broad sales world, a "whale" is a customer that yields a high commission or margin.  It follows then that one way for buyers (of anything) to minimize costs is to avoid getting harpooned.  How can you avoid getting "harpooned" by an electricity retailer?

 

Ontario's Near-Term Electricity Shelf Well-Stocked 

The supply-demand picture for electricity is a key consideration for those thinking about hedging their future price for power.  For 2009, the Ontario picture is much more favourable than it has been in the past. 

 

Contracting Wisely for T1 Can Reduce Costs

The T1 semi-unbundled service offered by Union Gas provides larger gas users with the chance to reduce costs on distribution, but only if they contract wisely.  Customers too often "over-contract" for T1 and miss a chance to reduce their costs. 

 

OEB Consults on Low Income Energy Consumer Issues

The Ontario Energy Board is consulting with stakeholders on issues concerning low income energy consumers and their use of natural gas and electricity.  The discussion has attracted a broad range of interests including large-volume consumers. 

 

In the News

IESO Releases Positive 18-Month Outlook

On September 23, 2008 the Independent Electricity System Operator (IESO) released a positive 18-month outlook.  
Click here>

WCI Announces Cap-and-Trade Program
On September 23, 2008 the Western Climate Initiative (WCI) announced recommendations for the design of a regional market-based cap-and-trade program.
Click here>

 

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