Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 3
We Know Energy
January 20, 2012 Energy Update
In this Issue
Editor's Note
These Energy Prices Are BEAUTIFUL
Natural Gas Fundamentals
EIA Gas Storage Update: Data Released Jan. 19, 2012
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
D.C.'s Dumbarton House Reduces its Carbon Footprint with Purchase of Carbon Offsets from WGES (Dec. 30, 2011)


U.S. EPA Honors the District of Columbia with the Green Power Community of the Year Award (Dec. 9, 2011)


WGES Receives Prestigious Green Power Supplier of the Year Award (Nov. 18, 2011)


WGES Selected to Supply 1.5 Million Megawatt Hours Per Year to the Baltimore Regional Cooperative Purchasing Committee (Nov. 14, 2011)

WGES and Kent County, Maryland Announce 1.58 Megawatt Solar Project (Nov. 4, 2011)


EPA Recognizes Panera Bread of Maryland as a Top Retail Green Power Purchaser (Oct. 28, 2011)

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
These Energy Prices Are BEAUTIFUL
Week in review for period of Jan. 13 - 19, 2012

What an amazing ride. For this seven day report period, the 12 month average price for natural gas on the NYMEX fell 11%. The 12 month average price for peak power on the PJM fell 4%. Since the unofficial start of winter on Nov. 1, 2011, natural gas prices have dropped 31% and electricity prices have dropped 24%. Natural gas prices are trading near the ten year low and electricity prices are trading near a nine year low.

Very mild weather and record gas production have pushed prices down to these attractive levels. On the production side, shale gas is flooding the market. In fact, according to a recent article in Gas Daily, natural gas production in the United States is now at an all-time high.

On the weather side, the temperatures in November and December were much warmer than normal. Plus, the 8 to 10 day forecast calls for above-average temperatures east of the Mississippi. Because of these mild temperatures, natural gas is not being consumed and is thus left in storage. This week's natural gas withdrawal was 46% lower than the five year average withdrawal. As a result, the surplus over the five year average grew from 17% to 20%.

Are prices near the bottom? Here are some variables worth watching because they could place some upward pressure on prices: Firstly, many coal-fired electric plants are switching to natural gas because gas prices are low relative to coal. Secondly, a number of companies are now looking to export natural gas to other countries. Thirdly, weak prices may prompt some producers to shut -in their gas wells. Lastly, sanctions placed on Iranian oil could create some instability in the oil markets.

For now, prices are trading at very attractive levels. This is a great time to look at the early renewal strategy with your WGES account manager.

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