Chase Energy Canada Limited

After running higher prior to Monday’s regular trading session, the March natural gas futures contract peaked at $5.679 just a few minutes after the open before declining for the rest of the day. The prompt-month contract finished out the regular session at $5.401, down 11.4 cents…Storing energy has long been a dream of wind energy producers hoping to supply a consistent source of green power to the electrical grid — without using expensive batteries. Lancaster Wind Systems, a Nisku company, says by turning wind energy into hydraulic power, inert nitrogen gas can be compressed in thousands of kilometres of unused pipelines across North America — creating something along the lines of a giant pressure tank. Wind turbines would add pressure to the network, and small electricity-creating turbines tied into the system would draw off that pressure, producing power in a closed-loop system right where the electricity is needed. High-capacity electricity transmission lines will one day be a memory, with the continent’s energy moving around as pressurized gas. The project has captured funding from the Sustainable Development Technology Canada fund, and also raised millions from private investors. We aren’t trying to restrict ourselves by feathering our blades. We don’t care if the wind goes up or down, we don’t have to worry about fluctuations. We just take the energy and store it…Northland Power Income Fund, the operator of two Canadian wind farms, agreed to build and run a C$700 million natural-gas-fired plant that will supply electricity to Saskatchewan Power Corp. Construction will start in July in North Battleford, Saskatchewan, and is scheduled for completion in 2013. Saskatchewan Power, the province’s largest electricity distributor, agreed to buy all of the plant’s output for 20 years and to cover any increase in fuel costs.

NOVA/TransCanada Alberta System information as of 5:30 A.M.: Linepack = 14482 which is +249 mmcf BELOW the Linepack Target of 14731 mmcf. The ROC for the past 24 hours is -277 mmcf. The Eastern Borders (Empress and McNeil) collectively is showing a change in flow from yesterday by +280 mmcf flowing at 5690 mmcf. ABC shows a change by -6 mmcf flowing at 2057 mmcf. The Storage facilities collective rates are currently showing a net WITHDRAWAL = -1253 mmcf/d (“Negative”…reflects a WITHDRAWAL from storage onto the system) which is a 40 mmcf NET INCREASE in the flow rate from yesterday’s gas day rate.

Natural gas futures appeared unconcerned as the March contract bounced back and forth before closing the regular session at $5.515, up 9.9 cents from and 38.4 cents from the previous week’s settlement…At least five people were killed and 12 injured Sunday when a massive explosion rocked a large gas-fired power plant being built in Middletown, Connecticut. A natural gas leak caused the blast during testing at the Kleen Energy Systems LLC facility, which was 95 percent complete and due to come online this summer as the largest electricity generating plant in New England. As many as 200 workers were at the site on any given day and the exact number of dead and injured would not be known until each contractor provided a list of employees…Wind Prospects Inc., a Canadian subsidiary of U.K.-based Wind Prospects Group, has recently been awarded a contract to supply electricity to Nova Scotia Power. This will allow the utility to meet government’s mandated requirement to have 25 per cent of electricity from renewable sources by 2015. In total, 20 bids were received by Nova Scotia Power in response to its recent call for bids, with only 10 contracts being awarded to smaller, community wind developments. The Fairmont project will have two wind turbines and generate four megawatts of electricity. It is estimated to cost about $8 million…Pacific Gas and Electric Co. is weeks away from submitting an application to the federal government for a first-of-its kind project to test wave energy devices off the Humboldt County coast. The pilot project could be a proving ground for the large-scale production of energy from waves, but a host of environmental and economic concerns will have to be addressed before that can happen. At a public meeting at the Veteran’s Hall Tuesday night, a working group made up of representatives from PG&E, state and federal agencies, commercial and sport fishing interests, and surfing and environmental groups outlined the promise and potential effects of new technologies.

NOVA/TransCanada Alberta System Linepack: for Friday =14852, Saturday = 14820 and Sunday = 14810 which is 79 mmcf ABOVE the Linepack Target of 14731. The ROC for the past 24 hours was = +8 mmcf. The Eastern Borders (Empress and McNeil) collectively for the term flowed as follows…… Friday = 5122, Saturday = 5311 and Sunday = 5410 mmcf.  ABC flow for the term ….. Friday = 2098, Saturday = 2060 and Sunday = 2063 mmcf. Storage flow for the term starting with Friday shows a net WITHDRAWAL= -875, Saturday net WITHDRAWAL = -1103 and Sunday net WITHDRAWAL = -1213 mmcf (“Negative”… reflects a WITHDRAWAL from storage onto the system) which is a 110 mmcf NET INCREASE the flow rate from yesterday’s gas day.  Alberta NIT SPOT Prices for: Friday = $5.2450, Saturday = $5.24 and Sunday = $5.39 which is a INCREASE of $0. 145 from the last business trading day (Friday) Spot Settlement Price.

A bearish 115 Bcf storage draw report diluted expectations of a wave of lasting wintry cold Friday that was expected to bring heavy snowfalls from Omaha, NE, to Chicago, to Washington, DC, to New York City as the March nat gas contract ended up settling at $5.416, three-tenths of a penny below yesterday’s finish… Teck Resources Ltd. said Thursday the B.C. Utilities Commission has approved the sale of a one-third interest in the Waneta Dam to the B.C. Hydro and Power Authority. In June, Teck announced plans to sell the stake in the dam for $825 million, in a bid to reduce its debt load following its acquisition of Fording Canadian Coal Trust. Teck said the commission had concluded the proposed deal could close, as the expenditure proposed by BC Hydro to acquire the stake is in the public interest… Hamilton Health Science has earned one of the highest energy-efficiency rebates ever handed out in Ontario. The hospital group was given a cheque for more than $639,000 yesterday by Horizon Utilities Corporation after completing a three-year program to cut its energy use by $5.5 million a year…EnCana Corp. instituted new safety procedures and conducted a risk assessment review at 500 drilling sites ahead of a report issued Thursday by the British Columbia Oil and Gas Commission that said the producer failed to properly execute its emergency response plan following a natural gas leak last November at a shale drilling site.

NOVA/TransCanada Alberta System information as of 5:30 A.M.: Linepack = 14949 which is +218 mmcf ABOVE the Linepack Target of 14731 mmcf. The ROC for the past 24 hours is -54 mmcf. The Eastern Borders (Empress and McNeil) collectively is showing a change in flow from yesterday by +603 mmcf flowing at 5473 mmcf. ABC shows a change by -34 mmcf flowing at 2079 mmcf. The Storage facilities collective rates are currently showing a net WITHDRAWAL = -1153 mmcf/d (“Negative”…reflects a WITHDRAWAL from storage onto the system) which is a 196 mmcf NET INCREASE in the flow rate from yesterday’s gas day rate.

Despite forecasts of a significant winter weather event for later in the week, natural gas futures reached a high of $5.56 before closing at $5.419, down 3.5 cents…Canada expanded its wind power production last year at a record pace, putting it among the top 10 countries that built new turbines in 2009. Data unveiled yesterday by the Global Wind Energy Council showed that Canada’s 950 megawatts of new wind turbines that were hooked up last year to the electrical grid placed it ninth overall among wind power producing nations. China was the busiest at adding new capacity, with a massive 13,000 MW built, more than doubling its existing base of wind power production. The United States came second with 9,900 MW of new capacity, and Spain was third with 2,460 MW…Fortis Inc. delivered net earnings applicable to common shares of $262 million in 2009, up $17 million from earnings of $245 million in 2008. Earnings per common share were $1.54 compared to $1.56 in 2008. Fortis has raised its annual dividend to common shareholders for 37 consecutive years, the longest record of any public corporation in Canada. Dividends paid per common share grew to $1.04 in 2009, up 4 per cent from $1.00 paid per common share in the previous year…Manulife Financial announced the completion of a $179 million financing with Invenergy Wind North America for the construction and long term operation of a 78 megawatt wind farm in western Ontario. It is the agent and lead lender with an investment of $88 million.

NOVA/TransCanada Alberta System information as of 5:30 A.M.: Linepack = 1500 which is +269 mmcf ABOVE the Linepack Target of 14731 mmcf. The ROC for the past 24 hours is +184 mmcf. The Eastern Borders (Empress and McNeil) collectively is showing a change in flow from yesterday by -224 mmcf flowing at 4870 mmcf. ABC shows a change by +42 mmcf flowing at 2113 mmcf. The Storage facilities collective rates are currently showing a net WITHDRAWAL = -957 mmcf/d (“Negative”…reflects a WITHDRAWAL from storage onto the system) which is a 242 mmcf NET DECREASE in the flow rate from yesterday’s gas day rate.

Keephills#2 came back online at 03:01 this morning. March natural gas futures finished on the plus side but just barely as March gained 2 cents while March in Alberta lost almost 3 cents…Saskatchewan and Manitoba will study the cost of improving the power transmission grid between them to allow for increased trade in electricity. At the close of the first ever joint cabinet meeting between the neighbouring provinces, Premier Brad Wall said that as Saskatchewan looks at all of its energy options it needs to consider importing more hydro from Manitoba. Saskatchewan has already been importing power from next door but in admittedly small amounts. The amount peaked in 2008 when Saskatchewan spent $6 million. In turn, if the grid is improved, there may be opportunity for Saskatchewan to export electricity if Manitoba suffers a drought…Canada’s Khan Resources Inc said Monday the company has entered into a definitive agreement to sell all its outstanding common shares for C$0.96 per share in cash to CNNC Overseas Uranium Holding Ltd, giving CNNC access to the Dornod uranium field in Mongolia…Nova Scotia-based energy company Emera Inc., has concluded its purchase of the proposed 30-megawatt Digby Wind Park in Digby County, NS.  The project is expected to be completed by December 31, 2010…Electricity rates for residential users, businesses and industry are going to increase as a result of recent changes introduced by the Ontario government and its energy agencies. The projected increases in electricity bills for local ratepayers range from a low of one per cent annually predicted by Brad Duguid, Ontario’s Minister of Energy and Infrastructure, as a result of the province’s Green Energy Act, to a high of a 33 to 60 per cent increase over the next two to three years projected by the Clean Affordable Energy Alliance of Ontario, which included a variety of factors in its analysis.