Electricity Rates Take a Breather
The Alberta spot price for power for September ended up at $ 23.97 / MW and for October it ended at $ 27.03 / MW, down from $122.53 / MW in July. All greek to you right? What do these prices mean? Peace Power’s floating rate is directly linked to the spot price and therefore it means customers on our floating rate saved big these past two months. It also means our market is volatile with extremely large swings. In September Peace Power’s floating rate, was 3.8 cents / kWh. For October the floating rate will be approximately 4.1 cents / kWh. This compared to the September RRO rate of 8.6 cents / kWh and the October RRO rate of 6.7 cents / kWh. When analyzing the below charts, you’ll see that the spot market prices in September and October ranked 2nd and 4th lowest since February 2002. Think of it – you have to go back 12 years to find energy rates that were lower! In contrast, have a look at July 2014 on the right. It was the 10th highest spot market price.
Year to date wholesale power rates in 2014 are running at $54.59 / MW which is the fourth lowest year in the history of Alberta’s deregulated market. In 2014, the market has benefited by prices dropping. With the addition of new wind generation, the new Sheppard plant about to come on line and the Montana Tie Line – all of these business initiatives, (financed by the private sector) will result in lower wholesale costs.
“Deregulation is working”: Prices have come down, consumers have choice and new generation is being built. Sure there are blips in the supply side of the market – but what goes up comes down and prices today have not been this low for a dozen years.
Commercial consumers today can buy electricity for 7.15 cents / kWh and have been able to do so all year – even when wholesale pool prices spiked our retail offering remained constant. A spike in wholesale prices does not necessarily mean that it will impact the price consumers pay for electricity.
Further, we are offering a “Special Guaranteed Rate” for our seniors in Alberta at 6.95 cents per kWh. If you are over 65 why not sign up and save some money?
3 Year-Guaranteed stable rates are available for residential, farm and commercial customers – PLUS – NO EXIT fees; consumers can exit the contract with just 10 day-notice with zero penalties.
There is good news on the horizon especially with an increase in generation capacity – you will see retail prices come down over the near future. Deregulation encouraged new generation facilities to be built and consumers will benefit.
If you are paying 8 or 9 cents for electricity – then you are paying too much. If you are tired of the RRO going up and down – then get off of the old utility rates and switch over to one of our cheaper stable rates.
Deregulation Promised “Lower Rates” and it offered the option of “Customer Choice” for consumers and we delivered. Check it out www.PeacePower.ca. Stable rates guaranteed to the end of 2017. You got what you asked for – “Lower Rates”, “Guaranteed Prices” and “No Exit Fees”.
Cheers / Chad