TransAlta's Sheerness gas-fired power plant near Hanna, Alta. The facility produces 800 MW of electricity.
Enmax, Epcor and Direct Energy Regulated Services are now offering a RRO price of 32 cents per kilowatt hour. The MSA also refers to the practice as market power or offer behaviour. The most recent snapshot of the practice is detailed in a recentMany have asked why Alberta’s power prices are so high right now. You can pick your favourite vice, but the main reason continues to be higher offer behaviour from firms in pivotal positions.From yesterday’s Market Surveillance report: pic.twitter.com/ccW4MVGP0gAn Alberta economist who has researched the practice says the impact on prices is clear.
"The idea is we're going to allow firms to earn some degree of short-run profits via economic withholding to cover these large fixed costs of investment."Premier: 'Something's broken'"One of the things that changed a few years ago is this concept of economic withholding," said Danielle Smith on her weekly radio call-in show on Aug. 19.