Natural gas continues to fall
By MEDICINE HAT NEWS on February 23, 2023.
https://www.medicinehatnews.com@MedicineHatNews Natural gas prices continue to plummet after a steep run-up last fall when worries about global supplies drove prices higher. On Wednesday the province announced it expects the average default rate for March from Alberta suppliers to fall to $2.85 per gigajoule. That’s 86 cents lower than February and less than half the point at which a temporary cap on consumer prices would kick in. Medicine Hat utility officials noted the trend last week at committee meetings, with division head Brad Maynes calling the price reversal a “collapse of what we and a lot of others were predicting” for open market forecasts. In a usual commodity price update to committee, Maynes said despite fear of shortage, supplies remain high during the typically coldest months, thanks largely to a very mild winter across North America. He said power prices are now moderating as well. The year-to-date average pool price in the province at Feb. 15 was 11.5 cents per kilowatts hour, according to the Alberta Electrical System Operator. That is one third the average price registered in the last week of 2022. Medicine Hat will publish its default gas rate, which is now reset every month based on gas contracts secured over the past 120 days, on Mar. 1. Default power prices are also updated monthly, but based on the average price of other default offerings in the province. A city 12-month fixed-rate option prices of $6.60 for gas and 17.65 cents for power, is available through the first three months of the year, but will be updated Apr. 1 for the second quarter. 12-11
