Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 21
We Know Energy
May 25, 2012 Energy Update
In this Issue
Editor's Note
Prices Close Flat For the First Time In Five Weeks.
Natural Gas Fundamentals
Natural Gas Storage: Surplus Contracts for Fourth Week in a Row. Data Released May 24, 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 and Sterling Planet Donate $126,000 to the Chesapeake Bay Foundation’s Carbon Reduction Fund; Help Plant 1,500 Trees in Frederick, Md. (April 27, 2012)

WGES Provides Green Energy Products to Mandarin Oriental, D.C. (April 20, 2012)

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

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 Flat For the First Time In Five Weeks.
Week in review for period of May 18-24, 2012

The natural gas and electricity markets wrestled to a draw this week. During the four weeks prior to this seven-day report period, the 12-month average price for natural gas on the NYMEX had risen 21% and the 12-month average price for peak power on the PJM had risen 8.8%. However, that price rally stalled for this seven-day report period. The12-month average price for natural gas on the NYMEX actually fell 1%, while the 12-month average price for peak power on the PJM remained flat from last week.

For some reason, the energy markets were not spooked by this week's natural gas storage report, even though the gas surplus shrunk for the fourth week in a row. This week, the natural gas surplus shrunk another 3%. We are now 38% above the five-year average. Since March 8, 2012, the natural gas surplus over the five-year average has shrunk from 51% to 38%.

Calmer heads seemed to prevail this week as analysts reminded everyone that the storage surplus was still at a record-high level for this time of year. In fact, some analysts worry that storage will be stuffed full before the injection season ends on October 31, 2012.

All eyes are on the gas bubble. If we have a hot summer, demand will increase and the gas bubble will likely shrink. A hot summer will place upward pressure on energy prices. If we a have a cool summer, the gas surplus will likely grow and thus place downward pressure on energy prices. We really are at the mercy of Mother Nature.

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