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Washingto Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 3
We Know Energy.
January 21, 2011 Energy Update
In this Issue
Editors Note
Week in review for period of January 14, 2011 to January 20, 2011.
Renewable Energy
Solar Installation at Perdue to be One of East Coast’s Largest
Natural Gas
EIA Gas Storage Update
Baker Hughes Rotary Rig Count
NYMEX Natural Gas Monthly Settlements
NYMEX Values: Thursday, January 20, 2011
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*
 

 

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
CleanSteps(SM) Windpower
Editors Note
Week in review for period of January 14, 2011 to January 20, 2011.

For now, Old Man Winter is stealing the headlines as colder than normal temperatures continue to place upward pressure on energy prices.  For this report period, the 12 month average price for natural gas at the well-head rose 4.5% and the 12 month average price for peak power on the PJM rose 1.8%.  The sustained cold temperatures have increased gas demand and thus reduced the amount of gas in the storage fields. For example, on Dec.1, 2010, the gas storage surplus was 10% above the 5 year average. Now, the storage surplus is only 1.9% above the 5 year average.  Winter weather is always a wild card. The 11-14 day forecast predicts colder than normal temperatures again east of the Mississippi.

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Renewable Energy
Solar Installation at Perdue to be One of East Coast’s Largest

SALISBURY, MD. — More than 11,000 solar panels will be installed at two Perdue facilities this summer, resulting in one of the largest commercially-owned solar power systems in the eastern United States. Perdue has entered into a 15-year agreement with WGES to purchase electricity generated by the solar panels at guaranteed prices. By September 2011, Standard Solar Inc. of Rockville, Md. will install the ground-mounted solar panels, covering the equivalent of approximately 10 football fields, on Perdue property. Almost half will be at the Perdue corporate offices in Salisbury and will be visible to passers-by on westbound U.S. Route 50. The others will be at the company’s feed mill in Bridgeville, Del.  The systems, which will be owned and operated by WGES, will generate an average of 3,700 megawatt hours of electricity each year, or the amount of power used by 340 typical U.S. homes.  At peak production, the panels will produce as much as 90 percent of the electrical demand for each facility. 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

2,716

2,959

 -243

2,642

2,665

Storage Update:  For the 7th week in a row, we had a larger than normal withdrawal.  This week’s withdrawal was 243 Bcf. The 5 yr. avg. withdrawal was 133 Bcf.  Inventories are above the 5 year average, but the surplus is shrinking. We are 1.9% above the 5 yr average. Last week we were 5.75% above the 5 yr. average.

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Baker Hughes Rotary Rig Count

Weekly Drilling Rig Update:  Active rig count released by Baker and Hughes for the week ending 1/14/11 was 902 rigs. This was a decrease of 12 rigs from the previous week and marks the sixth decrease in a row.  The count is 91 higher than the count reported this same week last year. We are 27% below the 5 year average rig count of 1,236.

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

Feb-10

$0.5274

June-10

$0.4155

Oct-10 

$0.3837

Mar-10

$0.4816

July-10 

$0.4717

Nov-10 

$0.3292

Apr-10

$0.3842

Aug-10

$0.4774

Dec-10 

$0.4267

May-10

$0.4271

Sept-10

$0.3651

Jan-11

$0.4216

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NYMEX Values: Thursday, January 20, 2011
(Price per therm at the well-head)

Feb-11

$0.4695

July-11

$0.4791

Dec-11

$0.5202

Mar-11

$0.4692

Aug-11

$0.4816

Jan-12

$0.5326

Apr-11

$0.4677

Sept-11

$0.4821

12-month

$0.48614

May-11

$0.4707

Oct-11

$0.4869

1/11-3/11

$0.46935

June-11

$0.4739

Nov-11

$0.5002

 Crude Oil

$88/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 Heating Degree Days*

 

Local Heating Degree Days* 

 

Nov10

Dec-10

Jan-11

Feb-11

Mar-11

April-11

 Actual

428

933 

 

 Normal

477

775 

 

 

 

 Departure from Normal

10%

20% 

 

 

 

 

Warmer

Colder

 

 

 

 

* Heating degree days are calculated by comparing the day’s average temperature to a 65 degree baseline.  If the day’s 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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