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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 22
We know how to deliver energy.
June 4, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of May 28, 2010 to June 3, 2010.
New Business
WGES Helps Commercial Customers and State Governments Save Money and Go Green
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, June 3, 2010
NYMEX 12-Mo. Avg. Price Per Therm at the Well-Head
PJM Electricity
PJM 12-Month Average Peak Power Price
Weather
Local Cooling Degree Days*
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CleanSteps(SM) Windpower
Editors Note
Week in review for period of May 28, 2010 to June 3, 2010.

Are the Bulls taking over? Energy prices rose for the second straight week. For this report period, the 12 month average price for natural gas at the well-head rose 4.9%, and the average 12 month price for electricity on the PJM rose 3.8%.  These are the highest prices we have seen since March’10. This week’s upward pressure, like last week, came from Mother Nature. The markets are concerned that a hot summer will increase energy demand and an active hurricane season will disrupt production.  Weather is always the wild card this time of year. If we do not have a hot summer or an active hurricane season, we may see downward pressure on energy prices because production is now higher than last year and will end the summer with an unusually large amount of natural gas in storage.

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New Business
WGES Helps Commercial Customers and State Governments Save Money and Go Green

WGES, a leading competitive energy supplier providing electricity and natural gas service to more than 280,000 residential, commercial, industrial and government customers in the Mid-Atlantic region, recently added 1,000 government accounts from the State of Delaware as a result of a competitive bid process to its growing list of government customers in the region.

In addition to the State of Delaware, WGES also serves five of the District of Columbia government’s largest energy consuming facilities and more than 3,500 of the State of Maryland’s large and small commercial accounts – all of which were awarded as a result of competitive bid processes. Wind power is a key component of the District of Columbia and State of Delaware electricity purchases.

“WGES is proud to serve a diverse group of residential and business customers, including government operations such as the D.C. Convention Center, several Delaware school districts,  the University of Maryland College Park and Thurgood Marshall Baltimore-Washington International Airport,” said Harry Warren, President of WGES. “In addition to offering significant savings to these government customers, and ultimately the taxpayers they serve, WGES also helps customers go green by supplying renewable energy,” said Warren. 
 
Read more

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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

2,357

2,269

 88

2,319

2,051

Storage Update:  This week’s reported injection was 88 bcf.  It was lower than expected.  Inventories are now 14.9% above the 5 year average. We are also 1.6% above last year’s storage number. This is still an all-time high for this time of year surpassing the levels set in 2009.

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Baker Hughes Rotary Rig Count

Weekly Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending May 28, 2010 was 967 rigs which was a net decrease of 2 rigs.  The rig count is 256 higher than the rig count reported this same week last year. We are now 24% below the 5-year average rig count of 1,267.

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

July-09

$0.3939

Nov-09  

$0.4289

Mar-10

$0.4816

Aug-09 

$0.3379

Dec--09 

$0.4486

Apr-10 

$0.3842

Sept-09 

$0.2843

Jan-10 

$0.5814

May-10 

$0.4271

Oct-09 

$0.3730

Feb-10

$0.5274

June-10 

$0.4155

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NYMEX Values: Thursday, June 3, 2010
(Price per therm at the well-head)

July-10

$0.4690

Dec-10

$0.5447

May-11

$0.5296

Aug-10

$0.4735

Jan-11

$0.5639

June-11

$0.5346

Sept-10

$0.4765

Feb-11

$0.5604

12-month

$0.5189

Oct-10

$0.4841

Mar-11

$0.5489

11/10-3/11

$0.54634

Nov-10

$0.5138

Apr-11

$0.5281

Crude oil

$74/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 Cooling Degree Days*

 

Local Cooling Degree Days* 

 

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

 Actual

201

 

 

 

 

 

 Normal

107

 

  

 

 

 

 Departure from Normal

47%

 

 

 

 

 

Warmer

 

 

 

 

 

 

**Cooling degree days are calculated by comparing the day’s average temperature to a 65 degree baseline.  If the average temperature is below 65, there are no cooling degree days that day.  If the average temperature is greater than 65 degrees, then subtract 65 from the average temperature to find the number of cooling degree day

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