Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 37
We Know Energy
September 14, 2012 Energy Update
In this Issue
Editor's Note
Energy Prices Try To Move Toward Breakout Point This Week
Focus on Green Power
Reminder: RSVP for WGES-sponsored Lunch and Learn Program in Washington, D.C.
Natural Gas Fundamentals
Natural Gas Storage: Gas Bubble Shrinks Again. Data Released September 13, 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 Louisiana 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
Energy Prices Try To Move Toward Breakout Point This Week
Week in Review for September 7-13, 2012

We saw an unexpected jump in prices this week. For this seven-day report period, the average price for natural gas on the NYMEX rose 6.7%. The 12-month average price for peak power on the PJM rose 3%.

It is hard to tie this week's price increase to any big news story. Perhaps the market place was concerned about the shrinking natural gas storage bubble. For example, did you know that on May 3, 2012, the natural gas storage surplus was 55% above the five-year average? As of today, thanks to below-average gas injections throughout the entire summer, the natural gas storage surplus is only 9% above the five-year average.

One big reason that the gas injections were far below average this summer was that electric power plants were switching from coal to gas. As the power plants burned natural gas to generate electricity, less gas was available for summer injections. Some reports show that the power plants consumed 25% more gas this year than last year, thanks to the retirement of the coal-fired plants.

Another possible reason for this unexpected jump in prices was the low natural gas rig count. The active U.S. gas rotary rig count experienced yet another slide from the previous week and settled at 452 active rigs for the week ending September 7, 2012. This count, 440 rigs lower than the same week last year, also sits 57% below the five-year average gas rig count of 1,047. Looking even further back, we see that natural gas rig counts are at a 13-year low.

Thankfully, the current energy prices still represent nine-year lows. However, keep an eye on the markets. This combination of below-average storage injections and consistently low rig counts could place upward pressure on prices.

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