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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 35
We know how to deliver energy.
September 3, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of August 27, 2010 to September 2, 2010.
Renewable Energy
D.C. Government Purchases WGES CleanSteps (SM) WindPower
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, September 2, 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*
 

 

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
CleanSteps(SM) Windpower
Editors Note
Week in review for period of August 27, 2010 to September 2, 2010.

Is the downward slide over? In the previous four weeks, energy prices dropped. In fact, since July 29, 2010 natural gas prices fell 14% and electricity prices fell 9%. However, for this seven day report period, the slide is over as the 12 month average price for natural gas at the well-head rose 1%, and the average 12 month price for peak power on the PJM remained flat compared to the previous week.  Some analysts say this is the bottom.  Time will tell. The analysts that say this is the bottom believe that demand will soon increase while production will slow.  Demand will increase as the economy becomes more robust and as more electric generation plants switch from coal to natural gas as the fuel of choice. Additionally, supply may slow due to the drilling moratorium that was put in place in response to the BP disaster. The rig count has fallen three weeks in a row. Lastly, the peak hurricane season is now upon us.  Stay tuned. This is still a good time to review the early renewal option.

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Renewable Energy
D.C. Government Purchases WGES CleanSteps (SM) WindPower

In the latest list by the EPA’s Green Power Partnership, the District of Columbia was ranked as the third largest Local Government nationwide to purchase green power in 2010. The District purchases more than 244,000,000 kWh of wind energy a year through Washington Gas Energy Services, the equivalent of avoiding 175,232 metric tons of CO2 and taking 33,505 cars off the road for one year.

Wind power helps to reduce emissions produced by conventional electricity sources and supports the development of wind farms. WGES CleanStepsSM WindPower for Large Commercial Customers is Green-e Energy certified, the nation's leading voluntary certification program for renewable energy. Large Commercial customers have the option to purchase CleanStepsSM WindPower for any portion of their energy portfolio.

In total, the top twenty local governments ranked by the Green Power Partnership purchase more than 2.1 billion kWh of green power annually.

EPA’s Green Power Partnership is a voluntary program that supports the procurement of green power by offering expert advice, tools and resources.  If your company is interested in purchasing WGES CleanStepsSM WindPower, or learning more about how you can participate in the Green Power Partnership, contact your Account Manager at Washington Gas Energy Services.

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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

3,106

3,052

 54

3,314

2,937

Storage Update:  This week’s injection was 54 Bcf. This was the largest injection number since mid-July.  However, the injection was still below the 5 year avgerage injection of 62 Bcf.  We are 6.3% below last year’s levels. As temperatures become less hot, the injection number may begin to approach normal levels. Gas can go into storage instead of going to the generators.

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Baker Hughes Rotary Rig Count

Weekly Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending 8/27/10 was 973 rigs which was a net decrease of 12 rigs. This is the 3rd week in row that the rig count dropped. The count is 274 higher than the count reported this same week last year. We are 22% below the 5 year averge rig count of 1,255. 

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

Oct-09

$0.3730

Feb-10

$0.5274

June-10

$0.4155

Nov-09

$0.4289

Mar-10

$0.4816

July-10 

$0.4717

Dec-09

$0.4486

Apr-10

$0.3842

Aug-10 

$0.4774

Jan-10

$0.5814

May-10

$0.4271

Sept-10 

$0.3651

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NYMEX Values: Thursday, September 2, 2010
(Price per therm at the well-head)

Oct-10

$0.3751

Mar-11

$0.4472

Aug-11

$0.4603

Nov-10

$0.4025

Apr-11

$0.4399

Sept-11

$0.4628

Dec-10

$0.4359

May-11

$0.4425

12-month

$0.4398

Jan-11

$0.4543

June-11

$0.4480

11/10-3/11

$0.43874

Feb-11

$0.4538

July-11

$0.4551

 Crude Oil

$74/barrel 

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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 Cooling Degree Days*

 

Local Cooling Degree Days* 

 

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

 Actual

201

473 

566

479

 

 

 Normal

107

 304

  456

402

 

 

 Departure from Normal

47.0%

 55.6%

19.4%

16.1%

 

 

Warmer

 Warmer

Warmer

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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