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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 8, Issue 50
We know how to deliver energy.
December 11, 2009 Energy Update
In this Issue
Editors Note
Week in review for period of December 4, 2009 to December 10, 2009.
Market Alert
Major supplier exits the Energy Business while WGES expands into Pa.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, December 10, 2009
NYMEX 12-Mo. Avg. Price Per Therm at the Well-Head
PJM Electricity
PJM 12-Month Average Peak Power Price
Weather
Local Heating Degree Days*
e- Poll
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For more information, contact your WGES Account Manager or wges_lgc@wges.com.
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Editors Note
Week in review for period of December 4, 2009 to December 10, 2009.

During the last three weeks, natural gas and electricity prices have been extremely volatile and fickle. For the week ending Nov. 27, 2009 energy prices rose approximately 6%, then for the week ending Dec. 4, 2009, energy prices fell approximately 7.7%.  For this report period, prices have spiked upward.  The 12 month average price for natural gas at the well-head rose 14%. The average 12 month price for electricity on the PJM rose by 9.8%. Analysts agree that this recent price increase was driven by cold weather which created a spike in energy demand.  Additionally, thanks to the cold weather, the EIA reported the first gas storage withdrawal of the season.  (Please see storage report noted below) And to make things more interesting,  the forecasters have once again revised their  8-14 day forecast. They are now calling for below normal temperatures in the northeast. Winter is definitely the wild card for now. Please call us with questions.

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Market Alert
Major supplier exits the Energy Business while WGES expands into Pa.

WGES was established in 1995 to provide customers with value-added energy supply options in comparison to regulated utility supply service. During this time, many suppliers have entered and exited the energy supply markets, and just this past week the Washington Post announced that another major local supplier was exiting the energy supply market. (Read article here.)

While suppliers are continuing to exit the energy markets, WGES is actually expanding. WGES is excited to announce the expansion of energy supply services into the Pennsylvania market.  WGES is now offering discounts off the Pennsylvania Power & Light’s (PPL) electricity rates in Pa.  If you have facilities on the PPL utility system and want us to prepare a savings analysis for your review, please give us a call.

Since its inception, WGES Gas has established a track record second to none. WGES is the most experienced and largest supplier in this region. WGES is helping more than 270,000 customers save money on their energy costs. Our large volumes and industry experience ensure that you receive reliable service and the lowest prices available.

WGES is a financially sound and secure company.  WGES is a subsidiary of WGL Holdings, Inc. and an affiliate of Washington Gas, a company that has provided energy to the Washington metropolitan area for over 150 years. WGES is your natural choice for competitive and reliable energy supply service.

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Natural Gas
EIA Gas Storage Update

 

 Current Week

Last Week 

Net Change

 Last Year 

 5 Year

 

 Stocks (Bcf)

Stocks (Bcf)

 (Bcf)

Stocks (Bcf)

 Average (Bcf)

 Total Lower 48

3,773

3,837

-64

3,301

3,260

Storage Update:  This week’s number shows the first withdrawal of the season. Inventory levels decreased by 64 bcf.  The recent cold temperature is one reason for the larger than expected withdrawal.  Working gas in storage for the week ending 12/4/09 was 3,773 bcf following last week’s withdrawal. The inventories are 14.3% above last year’s levels. We are 15.7% above the 5 year average.

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Baker Hughes Rotary Rig Count

Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending Dec 4, 2009 was 748 rigs. The rig count remained the same as previous week. The rig count is still 680 lower than the count reported this same week last year. We are 42% below the 5-year avg. rig count of 1,284.

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NYMEX Natural Gas Monthly Settlements
(Price per therm at the well-head)

Jan-09

$0.6136

May-09 

$0.3321

Sept-09 

$0.2843

Feb-09

$0.4476

Jun-09 

$0.3538 

Oct-09 

$0.3730

Mar-09 

$0.4056

July-09  

$0.3939

Nov-09 

$0.4289

Apr-09 

$0.3631

Aug-09 

$0.3379

Dec-09 

$0.4486

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NYMEX Values: Thursday, December 10, 2009
(Price per therm at the well-head)

Jan-10

$0.5298

Jun-10

$0.5506

Nov -10

$0.6237

Feb-10

$0.5346

July-10

$0.5584

Dec-10

$0.6617

Mar-10

$0.5383

Aug-10

$0.5659

12-month

$0.5670

Apr-10

$0.5402

Sept-10

$0.5711

12/09-3/10

$0.49560

May-10

$0.5444

Oct-10

$0.5847

Crude oil

$71/bl.

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NYMEX 12-Mo. Avg. Price Per Therm at the Well-Head
(excludes Interstate Transportation)

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PJM Electricity
PJM 12-Month Average Peak Power Price
On-Peak 1 Year Forward Price

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Weather
Local Heating Degree Days*

 

Local Cooling Degree Days* 

 

Nov-09

 

 

 

 Actual

376

  

 

 

        

 Normal

477

  

 

 

 

 Departure from Normal

21.2%

 

 

 

Warmer

           

           

           

          

          

 

* * Heating degree days are calculated by comparing the day’s average temperature to a 65 degree baseline.  If the day’s average temperature is above 65, there are no heating degree days that day.  If the day’s average temperature is less than 65 degrees, subtract the day’s average temperature from 65 to find the number of heating degree days for that day.

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