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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 8, Issue 51
We know how to deliver energy.
December 18, 2009 Energy Update
In this Issue
Editors Note
Week in review for period of December 11, 2009 to December 17, 2009.
Market Alert
Major supplier exits the Energy Business while WGES expands into Pa.
Renewable Energy
Bullis School Dedicates Largest Solar Power System at a Private School in Metro DC
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, December 17, 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
Are you ready for the Holidays?
Yes
No
Not sure yet
 

 

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
CleanSteps(SM) Windpower
Editors Note
Week in review for period of December 11, 2009 to December 17, 2009.

The weather outside is frightful and that is bad for energy prices. This is the second week in a row that cold weather placed upward pressure on prices. During last Friday’s report, natural gas prices at the well-head rose 14% and electric prices on the PJM rose 6%. For this report period, the 12 month average price for natural gas at the well-head rose 5.7%. The average 12 month price for electricity on the PJM rose 6%. Crude oil prices rose $1.60/barrel closing at $72.60/barrel.  Analysts agree that these price increases are driven by the cold weather which is creating a spike in energy demand. Hold on to your wool caps because the National Weather Service is calling for below normal temperatures in the northeast for the next 14 days. This week, the storage report also contributed to the price spikes. (Please see storage report noted below.)  The EIA reported a huge gas withdrawal of 207 bcf. This is one of the largest gas withdrawals on record for December.  This is a good time to look at the 2010 - 2011 early renewal strategy. 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  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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Renewable Energy
Bullis School Dedicates Largest Solar Power System at a Private School in Metro DC

At a ceremony December 14th attended by federal and state legislators, students and school administrators, Bullis School dedicated the largest solar electric power system at a private school in the DC area. Installed by Clean Currents Solar and owned and operated by Washington Gas Energy Services, Inc. (WGES), the system will provide electricity for the school’s Blair Family Center for the Arts. 

"We are proud to be pioneering the use of solar power on this scale among independent schools in the area," said Tom Farquhar, Head of School at Bullis. 'By demonstrating a commitment to renewable energy today we point the way for our students and our community to build a more sustainable future."  Read full article

 

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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

3,566

3,773

-207

3,185

3,133

Storage Update:  This week’s number shows the largest withdrawal since January 2009 and one the largest ever in December. Inventory levels decreased by 207 bcf.  The recent cold temperature is one reason for the largest withdrawal.  Working gas in storage for the week ending 12/11/09 was 3,566 bcf following last week’s withdrawal of 207 Bcf.   The inventories are 12.0% above last year’s levels. We are 13.8% 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 11, 2009 was 757 rigs.  The rig count is still 622 lower than the count reported this same week last year. We are 42% below the 5-year avg. rig count of 1,302.

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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 17, 2009
(Price per therm at the well-head)

Jan-10

$0.5768

Jun-10

$0.5838

Nov -10

$0.6441

Feb-10

$0.5800

July-10

$0.5910

Dec-10

$0.6761

Mar-10

$0.5787

Aug-10

$0.5980

12-month

$0.5998

Apr-10

$0.5757

Sept-10

$0.6014

12/09-3/10

$0.54923

May-10

$0.5784

Oct-10

$0.6134

Crude oil

$72.60/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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