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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 36
We know how to deliver energy.
September 10, 2010 Energy Update
In this Issue
Editors Note
Week in review for period of September 3, 2010 to September 9, 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 9, 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 September 3, 2010 to September 9, 2010.

As you recall, from July 29, 2010 to Aug. 28, 2010 natural gas prices fell 14% and electricity prices fell 9%. However, over the last 14 days, prices have been flat.  For this 7 day period, the 12 month average price for natural gas at the well-head was identical to last Friday’s closing number. The average 12 month price for peak power on the PJM was also flat compared to the previous week.  We are gliding into the shoulder months where we have little cooling demand, minimal heating demand and no storms. The market is in a lull while it awaits the next story line. Some analysts say this is the bottom.  One variable worth watching is the natural gas storage report. Due to the hot summer we just experienced, the natural gas storage surplus, relative to the 5 year average, has been cut in half. Storages were 18% over the 5 year average in May but are now only 5% over the 5 year average. The other wild card to watch is the economy. As the industrial sector ramps up, it will begin to use more fossil fuels.

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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

3,164

3,106

 58

3,382

2,998

Storage Update:  This week’s injection was 58 Bcf.  This injection was once again below the 5 year avg. injection of 64 Bcf. In fact, this was the 12th consecutive week that the injection was below normal.  The deficit from last year continues to grow as we are now 6.4 % below last year’s levels. The surplus relative to the 5 year average has narrowed to 5.5%.

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Baker Hughes Rotary Rig Count

Weekly Drilling Rig Update:  Active rig count released by Baker and Hughes for week ending 9/3/10 was 977 rigs which was a net increase of 4 rigs. This is the1st week out of 4 that the rig count increased. The count is 276 higher than the count reported this same week last year. We are 22% below the 5 year average rig count of 1255.

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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 9, 2010
(Price per therm at the well-head)

Oct-10

$0.3768

Mar-11

$0.4467

Aug-11

$0.4615

Nov-10

$0.4026

Apr-11

$0.4402

Sept-11

$0.4642

Dec-10

$0.4333

May-11

$0.4430

12-month

$0.4399

Jan-11

$0.4523

June-11

$0.4488

11/10-3/11

$0.43754

Feb-11

$0.4528

July-11

$0.4560

 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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