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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 5
We know how to deliver energy.
February 5, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of January 29, 2010 to February 4, 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, February 4, 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 29, 2010 to February 4, 2010.
The “Bears” and “Bulls” are still battling for dominance. As you can see from the graphs below, it is a draw. Energy prices have been trading in a tight band over the last month.  Energy prices fell last week but rose this week. For this report period, the prospects of cold weather coupled with the pending winter storm placed upward pressure on natural gas and electricity prices this week. This week the 12 month average price for natural gas at the well-head rose 3.8%.  The average 12 month price for electricity on the PJM rose 3.7%.  The future direction of prices will depend on the pace of the economic recovery and the severity of temperatures over the next eight weeks.  One big question is whether gas inventories will still be above the five year average at the end of March.  Stay tuned.  

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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

2,406

2,521

-115

2,207

2,256

Storage Update:  This week’s reported withdrawal was 115 Bcf.  This  smaller than expected withdrawal  helped push gas inventories back over the five year average. The inventories are 9% above last year’s levels. We are now 6.6% 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 January 29, 2010 was 861 rigs.  The rig count is 324 lower than the count reported this same week last year. We are 33% below the 5-year avg. rig count of 1,277.

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

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

Jun-09 

$0.3538

Oct-09 

$0.3730

Feb-10 

$0.5274

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NYMEX Values: Thursday, February 4, 2010
(Price per therm at the well-head)

Mar-10

$0.5416

Aug-10

$0.5637

Jan-11

$0.6634

Apr-10

$0.5384

Sept-10

$0.5672

Feb-11

$0.6594

May-10

$0.5428

Oct-10

$0.5779

12-month

$0.5842

Jun-10

$0.5499

Nov-10

$0.6082

11/10-3/11

$0.6420

July-10

$0.5573

Dec-10

$0.6409

Crude oil

$73/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

914

 

 

         

 Normal

477

775

  917

 

 

 

 Departure from Normal

21.2%

7.74%

0.3%

 

 

 

Warmer

Cooler

Warmer

 

 

 

 

* 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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