Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 9
We Know Energy
March 2, 2012 Energy Update
In this Issue
Editor's Note
This May Be One Of The Warmest Winters on Record
Spotlight on Natural Gas
WGES' Parent Company Announces Plans to Jointly Develop 200-mile Interstate Gas Pipeline
Natural Gas Fundamentals
Natural Gas Storage Update: Data Released March 1, 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
This May Be One Of The Warmest Winters on Record
Week in review for period of February 24 to March 1, 2012

In last Friday's Energy Update, we saw that the 12-month average price for natural gas on the NYMEX rose 1% and the 12-month average price for peak power on the PJM rose 2%. However, that small rally was neutralized this week. For this seven-day report period, the 12-month average price for natural gas on the NYMEX fell 6% and the 12-month average price for peak power on the PJM fell 4%.

On the supply side, record-high storage levels kept downward pressure on natural gas and electricity prices. This week's natural gas withdrawal was only 82 Bcf. As a result, the surplus over the five-year average grew from 40% to 45%. We are expected to end the traditional withdrawal season on March 31 with record-high inventories for this time of year. Beware: analysts continue to point out that natural gas producers are beginning to shut-in some of their gas wells in an effort to place upward pressure on prices.

On the demand side, the winter heating season never arrived. The United States (excluding Alaska and Hawaii) is experiencing one of the warmest winters on record. Closer to home, for example, Richmond, Virginia is experiencing its fifth warmest winter on record. The absence of winter and this week's forecast for warmer-than-normal temperatures over the next 14 days kept downward pressure on prices.

Moving forward, on the demand side, many electricity-generation operators are now turning off their coal-fired plants and turning on their natural gas-fired plants. According to Bentec Energy LLC and the U.S. EIA, "natural gas consumed in the power sector this February was almost 27 percent greater than the natural gas power burn in February 2011."

As more electricity-generation operators continue to make this change to gas, and as gas producers shut-in their natural gas wells, we may begin to see some upward pressure on natural gas and electricity prices.

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