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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 7
We know how to deliver energy.
February 19, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of February 12, 2010 to February 18, 2010.
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, February 18, 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*
Press Release
Statement from Harry Warren, President of WGES
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Editors Note
Week in review for period of February 12, 2010 to February 18, 2010.
Natural gas and electricity prices drifted back towards the levels we experienced prior to the February snow storms. For this report period, the 12 month average price for natural gas at the well-head fell 4%. The average 12 month price for electricity on the PJM fell 2.7%.  Although the nasty February weather tried to place upward pressure on prices, analysts note that we have weathered the storms with ample gas supplies in storage. (We only have 7 weeks left in the traditional winter season.)  Analysts say that the natural gas storage levels have been protected this year because we have experienced a large surge of LNG into the markets and the well-head counts have increased 27% since Sept. 2009. In other words increased supplies have offset the cold weather demand.  The future direction of prices still depends on the pace of the economic recovery and the severity of temperatures over the next seven weeks.

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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

2,025

2,215

-190

1,999

1,972

Storage Update:  This week’s reported withdrawal was 190 Bcf.   Despite cold temperatures, inventories are still above the five year avg. We are 2.7% above the five yr. avg. Inventories are 1.3% above last year’s levels. With only 7 weeks left in the withdrawal season, storage levels should be in good shape at the end of winter.

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Baker Hughes Rotary Rig Count

Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending February 12, 2010 was 891  rigs.  The rig count is 163 lower than the count reported this same week last year. We are 30% below the 5-year avg. rig count of 1,276.

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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 18, 2010
(Price per therm at the well-head)

Mar-10

$0.5172

Aug-10

$0.5429

Jan-11

$0.6375

Apr-10

$0.5164

Sept-10

$0.5459

Feb-11

$0.6332

May-10

$0.5226

Oct-10

$0.5550

12-month

$0.5615

Jun-10

$0.5298

Nov-10

$0.5845

11/10-3/11

$0.61698

July-10

$0.5374

Dec-10

$0.6150

Crude oil

$79/bl.

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

 

                                                              Trade Date

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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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Press Release
Statement from Harry Warren, President of WGES

“Since 1997, WGES has been supplying residential, commercial and industrial customers with cost-effective, reliable energy products and services in Maryland.  We’ve helped educate tens of thousands of customers about their right to choose an energy supplier and make informed decisions about price and product options as well as the process to switch to a retail provider.

Yet, more than 50% of Maryland residents don’t know they can shop for lower-cost energy options through licensed retail suppliers such as WGES.  This must change.  More must be done to ensure the benefits of Maryland’s competitive energy market flows to every family, affording each the opportunity to save and take better control of their electric bill.

Residential customers who signed up with WGES over the last 12 months have saved an average of 10% on their electric bills compared to standard offer service utility rates.  In today’s uncertain economic times, it is incumbent upon the leadership of this State to drive awareness of this opportunity, educate Maryland customers about their right to choose, and make certain competition works for everyone.

I commend Delegate Sue Hecht and Senator Catherine Pugh for recognizing this need and acting in the best interest of Maryland families.”

About WGES
Washington Gas Energy Services, Inc. is one of the largest competitive providers of electricity and natural gas in the mid-Atlantic region, and supplies over 280,000 customers in Maryland, Virginia, Delaware, the District of Columbia and Pennsylvania. Headquartered in Herndon, VA, Washington Gas Energy Services is an affiliate of Washington Gas and a subsidiary of WGL Holdings, Inc. (NYSE:WGL).

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