Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 25
We Know Energy
June 22, 2012 Energy Update
In this Issue
Editor's Note
Summer, the Next Wild Card, Officially Arrives
Spotlight on Green Power
WGES Announces Special Offers to Support Philadelphia’s Quest to Become the Nation’s #1 Green Power Community
Natural Gas Fundamentals
Natural Gas Storage: Record Surplus Shrinks For Eighth Week in a Row. Data Released June 21, 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
Summer, the Next Wild Card, Officially Arrives
Week in review for period of June 15 - 21, 2012

Over the last two months, the Bulls and Bears have wrestled for control of energy prices. Since May 3, 2012, the Bulls have been winning the pricing battle. Natural gas prices (for the forward 12 months as traded on NYMEX) have increased 8%. Electricity prices (for the forward 12 months as traded on the PJM) have also increased by 8%.

However, for this seven-day report period, natural gas and and electricity prices were unable to string together two consecutive increases. There were too many variables holding down prices. For this report period, the 12-month average price for natural gas on the NYMEX dropped 1.6%, while the 12-month average price for peak power on the PJM fell 1%.

One variable that may have placed some downward pressure on natural gas and electricity prices this week was crude oil. Crude oil prices dropped below $79/barrel for the first time in 18 months. Oil prices fell on fears of a worldwide economic slowdown. Many analysts fear the euro-zone instability may slow down the worldwide economic recovery. A weak economy means lower demand for energy, which usually means lower energy prices.

A second variable that kept prices in check was the natural gas storage position. Although the natural gas surplus shrunk for the eighth week in a row, the surplus is at a record-high level for this time of year. In fact, we now have 3,006 Bcf of gas in storage. This is the first time in history that the storage level has risen above 3,000 Bcf in the month in June. Normally, we do not hit the 3,000 Bcf level until the end of July.

Where do prices go from here? The huge question is whether or not the summer season will be hot enough to reduce the natural gas bubble. Summer officially started on Wednesday, June 20. We won't know the answer until mid-August when the electric power plants, which burn natural gas, are operating at full speed.

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