Share this Story: The big switch: Meet the Alberta utility that pivoted to natural gas despite lure of cheap coalThe big switch: Meet the Alberta utility that pivoted to natural gas despite lure of cheap coal The company says it won't return to coal in the face of rising gas prices Photo by Jeff McIntosh/The Canadian PressArticle content CALGARY — Alberta’s electric utilities’ strategy to switch their energy source from coal to natural gas has put them in an awkward position: Burning coal is cheaper than natural gas, even after paying the federal $75-per-tonne carbon tax. Natural gas prices in Alberta have jumped 43 per cent to $4.61 per gigajoule at the AECO pricing hub, from $3.21 per GJ last year. Photo by Sean Gallup/Getty Images files Coal prices have also risen as utilities consider gas-to-coal switching. Even as the cost of natural gas has risen, Dutton said the company will not return to coal. Reid-Carlson said the province’s electric generation mix will become more dependent on natural gas and renewables, especially wind, which will increase the correlation between natural gas commodity prices and power prices in Alberta.

Source: National Post November 17, 2021 10:11 UTC