Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 33
We Know Energy
August 17, 2012 Energy Update
In this Issue
Editor's Note
The Roller Coaster Ride Continues
Natural Gas Fundamentals
Natural Gas Storage: Gas Bubble Shrinks for 16th Week in a Row - Data Released August 16, 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
The Roller Coaster Ride Continues
Week In Review For August 10-16, 2012

The roller coaster ride continued for the fourth straight week. Prices are up one week and down the next. Last week the average price for natural gas on the NYMEX rose 2.8% and the 12-month average price for peak power on the PJM rose 1%. For this seven-day report period, the average price for natural gas on the NYMEX fell 5% and the 12-month average price for peak power on the PJM remained flat.

The marketplace cannot make up its mind. This week, for example, some analysts predicted that natural gas and electricity prices would move upward for the second week in a row in response to the news that the gas injection was only 20 Bcf, which was well below average. However, the low injection numbers were offset by the 6-10 day weather forecast that called for the arrival of cooler-than-normal temperatures east of the Mississippi. The weather forecast countered the low injection number and placed downward pressure on prices.

Watching prices this year has been like watching a boxing match with a punch and a counter-punch.

On one hand, we exited this past winter — the 4th warmest winter in U. S. history — with an abundance of natural gas in storage. In fact, on May 3, 2012, the natural gas storage surplus was 55% above the five-year average. This news kept downward pressure on prices.

On the other hand, the summer's weather has been brutally hot and has kept upward pressure on energy prices. July 2012 was the hottest month ever recorded in the U.S. lower 48. Because of this hot weather, natural gas was consumed for air conditioning and less was injected into storage. Since May 3, 2012 the gas surplus has shrunk from 55% above the five-year average to 12.5% above the five-year average.

So, this summer's weather has countered the winter's influence on pricing.

Energy is one of the most volatile commodities in the world because so many variables can impact pricing, including weather, rig counts, the economy and overseas news. But for now, we can all revel in the fact that prices are near a nine-year low and cooler temperatures are on the way.

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