Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 31
We Know Energy
August 3, 2012 Energy Update
In this Issue
Editor's Note
Weather Is the Wild Card: Tropical Storm Ernesto Points Toward the Gulf
Natural Gas Fundamentals
Natural Gas Storage: Gas Bubble Shrinks for 14th Week in a Row - Data Released August 2, 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-owned Solar Projects in Maryland Dedicated, Activated (July 20, 2012)

WGES Announces Special Offers to Support Philadelphia’s Quest to Become the Nation’s #1 Green Power Community (June 22, 2012)

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)

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
Weather Is the Wild Card: Tropical Storm Ernesto Points Toward the Gulf
Week In Review For July 27 - Aug. 2, 2012

During the past four weeks, the Energy Bulls and Bears have wrestled to a stale mate. Natural gas and electricity prices remained relatively flat from July 5-19, 2012. Then, during the seven-day reporting period of July 20-26, the 12-month average price for natural gas on the NYMEX rose 3.4% while the 12-month average price for peak power on the PJM remained flat.

For the current seven-day reporting period of July 27- August 2, natural gas prices fell and erased last week's gain. We saw the average price for natural gas on the NYMEX fall 3.5% while the 12-month average price for peak power on the PJM remained flat again.

Energy prices appear to be "range bound" for now, but do not be lulled to sleep. Analysts are closely watching the natural gas storage situation. Both natural gas and electricity prices are trading near a nine-year low because we have a large amount of natural gas in storage. However, the gas bubble has shrunk for 14 weeks in a row. Since May 3, 2012 the gas surplus has shrunk from 55% above the five-year average to 14.5% above the five-year average.

Natural gas injection numbers have been below average for the past 14 weeks because the natural gas supplies are getting diverted from the storage fields to the power plants. The electric power plants are burning natural gas at historically high levels to create the electricity needed to meet summer demand for air conditioning. Note that June 2012 was 10% warmer than normal while July 2012 was 30% warmer than normal.

The Energy Bulls and Bears are both closely watching the weather. Will August be hot enough to eliminate the record gas surplus in storage? How will hurricane season impact the Gulf of Mexico? Heads up: NOAA has just named another tropical storm. The new storm is named "Ernesto" and is headed toward the Gulf of Mexico.

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