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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 14
We know how to deliver energy.
April 9, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of April 2, 2010 to April 8, 2010.
From The Director - Ed Compton
WGES Offering Businesses Reduced Electricity Pricing in the PECO Electric Service Territory
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, April 8, 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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Editors Note
Week in review for period of April 2, 2010 to April 8, 2010.
Natural gas and electricity prices were unable to rise two weeks in a row. For this report period, the 12 month average price for natural gas at the well-head fell 3%. The average 12 month price for electricity on the PJM fell 1%. This means natural gas and electricity prices have fallen 7 of the last 8 week.  The recent downward trend is correlated to reports that show natural gas production is rising  while natural gas demand is falling. For example, the natural gas rig count has increased 13 weeks in a row and shale gas production is on the rise. On the demand side, the EIA reports that gas demand fell 14% over the last week thanks to the lack of heating demand. However, do not be lulled to sleep because a hot summer, an active  hurricane season,  a recovering economy or  rising oil prices  could easily reverse this downward trend. Note: Oil prices are at an 18 month high of $85/barrel.
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From The Director - Ed Compton
WGES Offering Businesses Reduced Electricity Pricing in the PECO Electric Service Territory

Effective March 26, 2010 Washington Gas Energy Services, Inc. (WGES), a subsidiary of WGL Holdings, Inc., is offering businesses reduced electricity pricing in the PECO Electric Service Territory. By choosing WGES, customers can avoid the PECO Utilities generation prices which will expire and a new rate structure will take effect on January 1, 2011 in accordance with the overall plan for Pennsylvania Deregulation.

It is estimated by PECO and the Pennsylvania Public Utilities Commission that customers will receive a significant savings in their prices through deregulation effective January 1, 2011. 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 PECO 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 PECO territory.

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

Thank you.

.
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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

1,669

1,638

 31

1,671

1,489

Storage Update:  This week’s report showed an increase of 31 Bcf.  Recent temperatures have been warmer than normal and thus natural gas consumption is low. The  excess gas has been pumped into storage. This was the third consecutive gas injection.  Inventories are now 12.1% above the five year average.  We are 0.1% below last year’s levels.

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Baker Hughes Rotary Rig Count

Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending ending April 1, 2010 was 949 rigs which was a net increase of eight rigs.  The rig count is 92 higher than the count reported this same week last year. We are 25% below the 5-year avg. rig count of 1,273.

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

May-09

$0.3321

Sept-09  

$0.2843

Jan-10

$0.5814

Jun-09 

$0.3538

Oct-09 

$0.3730

Feb-10 

$0.5274

July-09 

$0.3939

Nov-09 

$0.4289

Mar-10 

$0.4816

Aug-09 

$0.3379

Dec-09 

$0.4486

Apr-10 

$0.3842

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NYMEX Values: Thursday, April 8, 2010
(Price per therm at the well-head)

May-10

$0.3909

Oct-10

$0.4396

Mar-11

$0.5251

Jun-10

$0.4006

Nov-10

$0.4761

Apr-11

$0.5019

July-10

$0.4137

Dec-10

$0.5186

12-month

$0.4662

Aug-10

$0.4233

Jan-11

$0.5401

11/10-3/11

$0.51928

Sept-10

$0.4283

Feb-11

$0.5365

Crude oil

$85/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

856

419

         

 Normal

477

775

  917

114

563

 

 Departure from Normal

21.2%

7.74%

0.3%

15%

25.6%

 

Warmer

Cooler

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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