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According to a report that was recently released by the National Energy Board, consumers living in houses and furnished accommodations in Fort McMurray and all Albertan residents alike will pay more for their electricity this summer. The price of energy in Alberta is expected to go up by 16% during the coming summer. An analyst at the National Energy Board said prices could rise even higher than 16% with the recent surprise from TransAlta who announced that one of their vital plants, a 1983-vintage device, which was out of service since March due to a winding failure was expected to be back in service by mid-June, but instead will be out of commission until November due to extensive wiring degradation which resulted in the requirement for a full rewind. Marcy McAuley, spokeswoman for TransAlta reassures Albertans when she notes, "we're committed to being online and reliable. This is just as frustrating for TransAlta as it is for Albertans." Investors, who were nervous about the financial impact the delayed plant would have on their shares were comforted when McAuley stated, "TransAlta does not expect the outage to have a material financial impact on the corporation." To put a more positive spin on things, she also noted TransAlta's 288 MW Sundance 1 station will be back in service earlier than scheduled, so the impact on Alberta's power supply will be reduced in August. Furthermore, because Petro-Canada's refinery in Edmonton is back up and running, prices should lessen. Consumers with a fixed-price plan won't immediately see a change in their energy bill, however, Albertan residents who opted for a regulated rate will see an increase in their power bills. "There is an expectation that those not on a fixed-rate plan are going to see their power bills rise this summer," said Roger Creighton, a market analyst with the NEB. The good news is that the National Energy Board expects energy prices to drop back down to average seasonal levels following the increase. The National Energy Board also predicted that the prices at the pump in Alberta this summer are expected to fall within $1.20 to $1.30 per litre, which is close to last summer's average of $1.27 per litre. The low prices for gasoline ranks Alberta as having the lowest gas prices in the country. Low power supplies have caused power outages in the past. However, the organization that manages Alberta's power grid does not expect blackouts this summer even though power supply will be tighter during the summer months. Dawn Delaney, spokeswoman for the Alberta Electricity Supply Operator which is not-for-profit, has forecasted that it can maintain a minimum surplus of 1000 MW plus a 500-MW reserve the entire duration of summer unless there are unplanned outages. Delaney notes, "We have a contingency plan for when we have a lack of supply, we're in fairly good shape as far as reliability." Information about the Alberta economy and the Fort McMurray housing market.
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Fort McMurray Economy, Alberta Energy Prices,
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