Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 15
We Know Energy
April 13, 2012 Energy Update
In this Issue
Editor's Note
The Calm Before The Storm?
Natural Gas Fundamentals
Natural Gas Storage Update: Data Released April 12, 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
Weather
Local Heating Degree Days*
Recent Features
WGES Renewable Energy Products Are Now Green-e Energy Certified (April 6, 2012)




New MSN Video Features a WGES Customer's Green Power Commitment (March 23, 2012)




WGES' Parent Company Announces Plans to Jointly Develop 200-mile Interstate Gas Pipeline (March 2, 2012)

 



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)

 



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
Carbon

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
The Calm Before The Storm?
Week in review for period of April 6 -12, 2012

We have officially entered the "shoulder season." This is the time of year when you have very little need for heating or cooling. For most folks, this time is year is also called "spring."

Severe cold snaps or severe hot spells are less likely to hit during this time of the year. Thus, energy prices have fewer reasons to spike up or down. For now, it looks like natural gas and electricity prices have stabilized at today's levels. (Please see the graphs elsewhere in this issue that depict the trend lines for natural gas and electricity prices over the last 8 years.) For this seven-day report period, the 12-month average price for natural gas on the NYMEX fell 3% and the 12-month average price for peak power on the PJM rose 1%.

However, do not be lulled to sleep; summer is just around the corner. Hot summer weather and hurricanes can bring price spikes to the energy markets. Energy prices tend to rise during a hot summer because demand for cooling increases. Most power plants burn fossil fuels to create the electricity that is needed to feed our air conditioners. According to the Energy Information Administration, "in 2011, coal was the fuel for 42% of the 4 trillion kilowatt hours of electricity generated in the Untied States. In 2011, 25% of the Nation's electricity was fueled by natural gas." Natural gas power plants are very active when electricity usage is in high demand. On top of all of this, EIA reports that natural gas is now replacing coal as the fuel used in electricity generation in all parts of the country because natural gas is cleaner and less expensive than coal.

This could be the calm before the storm. Energy demand is low and natural gas and electricity prices have stabilized near a 10-year low. Natural gas production remains high and the natural gas storage hangover enters the shoulder season at a all-time high thanks to the fourth warmest winter on record. It is very hard to know if this is the bottom. Summer temperatures are now the wild card.

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