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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 3
We know how to deliver energy.
January 22, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of January 15, 2010 to January 21, 2010.
News Release
WASHINGTON GAS ENERGY SERVICES OFFERS LOWER ELECTRICITY RATES TO BUSINESSES IN PENNSYLVANIA POWER AND LIGHT TERRITORY
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, January 21, 2010
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*
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CleanSteps(SM) Windpower
Editors Note
Week in review for period of January 15, 2010 to January 21, 2010.

For this report period, natural gas prices and electricity prices were relatively flat. The 12 month average price for natural gas at the well-head fell $0.002/therm. The average 12 month price for electricity on the PJM fell $0.0003/kWh. Crude oil prices fell $4/barrel closing at $75/barrel.  However, I do not expect this calmness to remain. Weather forecasters are calling for the return of colder than normal temperatures over the next 10-14 days.  The colder than normal temperatures that descended upon the country in January increased energy demand, wiped out the natural gas storage surplus and placed upward pressure on energy prices. A cold February could place more upward pressure on prices because the unusually cold January wiped out the natural gas storage surplus. Natural gas storages are now 0.2% below the 5 year average. Please call us if you have questions or want to see your early  renewal update.    

Market Alert: WGES is now serving clients in Pennsylvania. If you have electric meters on the PPL system, please call us for your customized  savings analysis .

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News Release
WASHINGTON GAS ENERGY SERVICES OFFERS LOWER ELECTRICITY RATES TO BUSINESSES IN PENNSYLVANIA POWER AND LIGHT TERRITORY

Effective January 1, 2010 Washington Gas Energy Services, Inc. (WGES) a subsidiary of WGL Holdings, Inc, is offering businesses, condominiums, and apartment buildings, reduced electricity pricing in the PPL territory. By choosing WGES, customers can avoid the PPL Electric Utilities price increases which took effect January 1, 2010.

PPL and the Pennsylvania Public Utility Commission estimate that electricity prices that went into effect on January 1, 2010 represented a price increase to PPL customers anywhere from 19 to 37 percent.
Washington Gas Energy Services is recognized as one of the largest and most experienced electricity and renewable energy suppliers in the Mid-Atlantic territory. WGES serves over 264,000 commercial and residential customers in Maryland, Virginia, Delaware, and the District of Columbia. Leveraging the knowledge gained from providing more than 10 years of cost-effective reliable service to these customers, WGES will bring the same level of service reliability and dedication to the customers of Pennsylvania.

Competition in the PPL territory brings many choices to businesses in Pennsylvania. It will be important to select a supplier that has financial strength, years of experience in the electricity market, strong working knowledge of all relevant regulations, utility operations and billing systems. This type of knowledge and experience takes years to acquire and makes WGES a logical choice for all of your electricity needs in the PPL territory.

For more information about WGES Large Commercial offerings please contact Ed Compton, Director of Account Sales, at 703-793-7500 in Herndon, Virginia.

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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

2,607

2,852 

-245

2,585

2,613

Storage Update:  Last  week’s  reported withdrawal of 266Bcf  nearly broke  the all-time weekly withdrawal record of 274 Bcf. This week’s reported withdrawal of 245 Bcf was also very large. Last year at this time the weekly pull was only 164 Bcf. The frigid weather has caused these big withdrawals. The inventories are 0.9% above last year’s levels. We are now 0.2% below the 5 year average. Last year at this time we were 1.2% above 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 January 15, 2010 was 811 rigs.  The rig count is still 568 lower than the count  reported this same week last year. We are 37% below the 5-year avg. rig count of 1,279.

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

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

May-09 

$0.3321

Sept-09 

$0.2843

Jan-10 

$0.5814

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NYMEX Values: Thursday, January 21, 2010
(Price per therm at the well-head)

Feb-10

$0.5615

July-10

$0.5717

Dec-10

$0.6554

Mar-10

$0.5568

Aug-10

$0.5784

Jan-11

$0.6769

Apr-10

$0.5529

Sept-10

$0.5814

12-month

$0.5892

May-10

$0.5575

Oct-10

$0.5914

1/10-3/10

$0.54815

Jun-10

$0.5640

Nov-10

$0.6224

Crude oil

$75/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 Heating Degree Days* 

 

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

 Actual

376

835

 

 

 

         

 Normal

477

775

  

 

 

 

 Departure from Normal

21.2%

7.74%

 

 

 

 

Warmer

Cooler

 

 

 

 

 

* Heating degree days are calculated by comparing the day’s average temperature to a 65 degree baseline.  If the 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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