Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 9, Issue 48
We Know Energy
December 16, 2011 Energy Update
In this Issue
Editor's Note
Warmer Than Normal Temperatures Keep Downward Pressure On Prices
Natural Gas
EIA Gas Storage Update: Data Released December 15, 2011
Baker Hughes Rotary Rig Count For Natural Gas
NYMEX Natural Gas Monthly Settlements For the Past 12 Months
NYMEX Values For the Forward 12 Months
NYMEX Graph For Natural Gas - 12 Month Average Price Per Therm at the Well-Head
PJM Electricity
Graph - PJM 12-Month Average Peak Power Price
Local Heating Degree Days*
Recent Features
WGES Receives Prestigious Green Power Supplier of the Year Award (Nov. 18)


WGES Selected to Supply 1.5 Million Megawatt Hours Per Year to the Baltimore Regional Cooperative Purchasing Committee (Nov. 14)

WGES and Kent County, Maryland Announce 1.58 Megawatt Solar Project (Nov. 4)


EPA Recognizes Panera Bread of Maryland as a Top Retail Green Power Purchaser (Oct. 28)


Chimes International Activates 3,000-Panel, 670-Kilowatt Solar Panel Field on Baltimore City Campus (Oct. 14)


Perdue Completes Final Phase of WGES-owned Solar Power System (Oct. 7)


University of Maryland College Park Unveils Its New Solar Array (Sept. 2)

Our New Wind Power Partners
Green Power Leadership Award Winner - U.S. Department of Energy

Panera Bread of Maryland (Lemek LLC)
Calvary Baptist Church
Mountain View Community Church
Caser Chavez Public School
PB Dye Golf Club
Behnke Nurseries
Townes of North Creek
Victory Racing Plate Company
Village Management, Inc.
Mt. Airy Bicycles
College Park Bicycles
Donatelli Development
Blue Ocean Realty
Mandarin Oriental
Bank of Georgetown
Embassy of Bosnia Herzogovina
Baltimore International College Foundation
The Shakespeare Theatre Co.
Kaiser Foundation Health Plans of Mid-Atlantic States

Visit wges.com/partners for full list of WGES Wind Power Partners.

To find out more about a green power purchase for your organization, call 703-793-7578, or visit wges.com/commercialwind.

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
Editor's Note
Warmer Than Normal Temperatures Keep Downward Pressure On Prices
Week in review for period of December 9 - 15, 2011

For this seven day report period, energy prices fell again. The 12 month average price for natural gas on the NYMEX fell 7% and the 12 month average price for peak power on the PJM fell 7.4% this week.

The lack of any significant cold weather is the main story. Locally, November was 20% warmer than normal and December is also looking warmer than normal. Thanks to these above normal temperatures, the natural gas storage levels are operating at unusually high levels because less natural gas is being withdrawn to meet the country's heating demands. The natural storage surplus, relative to past years, continues to grow. This week, the year-to-year surplus grew from 2.7% to 4.3%. The surplus over the five year average grew from 8.7% to 10%.

Thanks to weak demand, high storage levels, and the emergence of shale gas, natural gas prices are trading near a nine year low and electricity prices are trading near an eight year low. This is a beautiful time to look at the early renewal strategy.

The coldest months of the year, January and February, are on the horizon. The onset of unusually cold temperatures could draw storage levels back to normal and could place some upward pressure on prices.

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