Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 24
We Know Energy
June 15, 2012 Energy Update
In this Issue
Editor's Note
Recent Price Declines Halted
Natural Gas Fundamentals
Natural Gas Storage: Surplus Shrinks For Seventh Week in a Row. Data Released June 14, 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 Cooling 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)


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
Recent Price Declines Halted
Week in review for period of June 8-14, 2012

Although natural gas and electricity prices had declined during the two weeks prior to this seven-day period, it was a short-lived trend. For this report period, the 12-month average price for natural gas on the NYMEX rose 4.63%, while the 12-month average price for peak power on the PJM remained flat compared to the previous week.

This week the market seemed to focus on the natural gas storage report. The market did not like the fact that the natural gas storage surplus shrunk for the seventh week in a row. Even though storage levels are still high for this time of year, the surplus is shrinking. Eight weeks ago, storage fields were 58% above the five-year average. This week storage levels are 29% above the five-year average. All eyes are on the shrinking storage bubble.

Another variable that is getting attention this week is the natural gas rig count. The natural gas rotary rig count dropped for the sixth time in seven weeks. There are only 565 natural gas rotary rigs in operation today. This is the lowest active rig count since 1999.

Some big questions remain. How much will the drop in the rotary rig count affect supplies? Will the gas storage bubble continue to shrink? We won't know the answers until mid-August when the electric power plants begin operating at full speed.

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