Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 5
We Know Energy
February 3, 2012 Energy Update
In this Issue
Editor's Note
Prices Close Relatively Flat This Week.
Natural Gas Fundamentals
Natural Gas Storage Update: Data Released February 2, 2012
Baker Hughes Rotary Rig Count For Natural Gas
NYMEX Natural Gas Monthly Settlements For the Past 12 Months
NYMEX Values Per Month 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 Customers Show How Small Changes Make a Big Difference (Jan. 27, 2012)


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)

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
Prices Close Relatively Flat This Week.
Week in review for period of Jan. 27 - Feb. 2, 2012

In last week's update, we reported that the 12-month average price for natural gas on the NYMEX rose 10%, and the 12-month average price for peak power on the PJM rose 4%. This was the first measurable increase since December 1, 2011. However, with the lack of any significant heating demand, the Bulls had a hard time mimicking last week's price rally. The market closed relatively flat compared to last week's numbers. For this seven-day report period, the 12-month average price for natural gas on the NYMEX rose 2%, and the 12-month average price for peak power on the PJM fell 1%.

For now, the bottom line remains the same. We are enjoying a large supply of natural gas because much warmer-than-normal temperatures are limiting demand for heating so far this winter. As a result, the natural gas storage surplus is now 25% greater than the five-year average. Supplies are high and demand is low.

On Groundhog Day, February 2, 2012, Punxsutawney Phil saw his shadow. According to legend, this means we will have six more weeks of winter. Colder temperatures could place upward pressure on prices. However, for this year, Phil's forecast may be incorrect because Old Man Winter hasn't even shown up.

Are prices at the bottom? Here is one variable to watch: If natural gas prices stay low, producers will shut-in their wells because it will be economically attractive for them. For now, prices are trading at very low levels. This is still a great time to look at an early renewal strategy.

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