Natural gas futures are down 8 percent for the near month showing that frigid temperatures do not necessarily translate into higher term prices. Severe cold weather does however affect the daily usage and price of natural gas and electricity.
Enbridge called a gas curtailment that began on Sunday, January 20th and extended the curtailment for an extra day to include Tuesday, January 22nd. Large interruptible contract customers (Rate 145, Rate 170 and Rate 9) are affected for the term of the curtailment. No Curtailment Delivery Service (CDS) is allowed, meaning that natural gas must be turned off at the facilities. If required, an alternative energy source must be used. Typically, CDS is allowed during an Enbridge curtailment period. CDS permits facilities to purchase incremental supply which allows them to continue burning natural gas during the curtailment period. CDS gas is available through GOenergy and other energy suppliers.
Ontario electricity demand has also increased during the January cold spell. Class A customers are warned that the Ontario demand is approaching the number 5 peak. Long range forecasts continue to predict a colder than average second half of the month. The hourly price (HOEP) is very high today making it a good day to reduce the amount of electricity used.
